Select Stocks Send Signal

289
Fri, Aug 17, 2012 - 10:43am

Perhaps we have a new acronym on our hands? The SSSS. Yesterday, quite by chance, I noticed that several of the best mining stocks are making 6-month highs. Is this another signal that higher metals prices are right around the corner?

Yesterday afternoon, I opened an app on my phone that is programmed to follow the major indices as well as 15-20 miners. I only opened it to see how the overall stock market was faring (which is something I rarely do) and then I scrolled down to look at a few miners (which is something I do even less). A couple of them caught my eye. I saw GOLD (Rangold) first and noticed that it was pushing 100. Then I noticed AEM (AgNico Eagle) and thought it looked noticeably higher, too. I pulled up charts and saw that they are both at 6-month highs. Wait a minute here. Hold on just a second. Isn't it curious that two, top miners would be moving to new 6-month highs while the metals are still stuck in a trading range?

The last time GOLD was near 100 was last March when gold was near 1700. The last time AEM was $46 was last November, when gold was close to 1750. What does this mean? Beats the crap out of me! But seriously...this could be phenomena specific to these companies...OR...it could be just another sign of the impending resurgence and rally in the price of the metals.

The next question should be: Do any of the other miners look like this? Well, not really. I did find two of our old favorites that are perking up a bit following recent earnings "disappointments" and need to be watched.

And the HUI itself is looking better. I can't give an ALL CLEAR yet but...if the HUI can keep rolling higher and post a few closes over 460...there may finally be reason for optimism in the mining sector.

And, of course, any mention if the term "HUI" here in Turdland comes with the obligatory posting of the SMOKING HOT Carrie Underwood singing about it. (Neo-turdites should know that, to my partially-deaf left ear, "undo it" sounds like "the hui".) (And I'll never understand what she sees in that meathead hockey player.)

Carrie Underwood - Undo It (Official Music Video)

OK, after I wipe off the cold sweat in which I suddenly find myself drenched, it's back to business. In an absolutely stunning development, the metals surged this morning at the open, only to be CAPPED ONCE AGAIN near 1620 and 28.25. Though I know many of you are getting sick of this crap and are dying to see the metals break out, you must remain patient. Fundamentally, gold and silver are extremely strong and, even when left to their own devices, are poised to eventually break out. ( https://stream.marketwatch.com/story/markets/SS-4-4/SS-4-9338/) But, screw that. I don't want to wait much longer so maybe we can begin forcing the issue next week. Until then, here are graphic representations of our current predicament.

And I'm not sure which of these two stories make me feel more nauseous. You'll likely read the NYT story before heading off to barf and then return to watch the video before getting sick again. First up, all of the conniving, criminal thieves at MFingGlobal are apparently set to walk free. Hmmm, I've got an idea. What do you say you and I start an investment firm where we take client money and use it to place huge, extremely risky trades. Then, when it all breaks down and the clients lose their money (which they were told was "safe" and "segregated"), we simply laugh it off as "porous risk controls" and walk away. How do you think that might work out for us? Maybe just a bit differently than it has for the criminal Corzine and his merry band of politically-connected, reprehensible outlaws? https://dealbook.nytimes.com/2012/08/15/no-criminal-case-is-likely-in-loss-at-mf-global/?hp And don't forget that just last week, your Seventh Circuit Court of Appeals established as precedent that the theft of client funds is now completely legal. God Bless the U.S.A.!

https://www.businessweek.com/news/2012-08-09/bank-of-new-york-mellon-wins-appeal-on-312-million-lien

https://www.reuters.com/article/2012/08/10/us-sentinel-appeals-decision-idUSBRE87900T20120810

And then there's this. I found this video on ZH last night. It is a time-lapse progression of the ownership makeup of the U.S. treasury market. Note that, in 2003, the Fed had a nearly even ownership across the curve. Watch then how this progresses. Now, the Fed is nearly out of short-term treasuries but they have come to completely dominate everything with a maturity of 3 years to 30 years where they own as much as 70% of the market! Simply amazing. And disgusting! This is America, land of the free and home of the brave where capitalism and free markets create productivity by equitably deciding who wins and who loses. NOT!!!

Fed vs. Private Sector Treasury Holdings

Listen up, you witch. Your days are numbered. We're onto you and soon you and all of your monkeys will be sent scurrying into exile. Perhaps you will be lucky and be allowed the fate of that goon, Corzine. Perhaps not. In the end, it matters little. All that does matter is that the game is ending and you are going to lose.

Drago: You Will Lose

TF

About the Author

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turd [at] tfmetalsreport [dot] com ()

  289 Comments

¤
Aug 17, 2012 - 5:32pm

Thanks TF

No problemo'. Thanks for taking the time to considerate it and respond back

Video unavailable
Aug 17, 2012 - 5:40pm

Civil War amongst the Banksters?

Sounds great- let the sharks take as many bites from the whale as they want. In the mean-time, we'll fortify our position in the TFMR bunker until the battle rages past.

Katie Rose
Aug 17, 2012 - 5:41pm

Katie Rose - Washington State Appeals Court Ruling

The Case is posted online here: (CERTIFIED FROM THE UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF WASHINGTON KRISTIN BAIN v. METROPOLITAN MORTGAGE GROUP, INC., INDYMAC BANK, FSB; MORTGAGE ELECTRONICS REGISTRATION SYSTEMS; REGIONAL TRUSTEE SERVICE; FIDELITY NATIONAL TITLE, Case Numbers: No. 86206-1, consolidated with No. 86207-9; Heard, En Banc) From the Introduction: “Judge John C. Coughenour of the Federal District Court for the Western District of Washington has asked us to answer three certified questions relating to two home foreclosures pending in King County. In both cases, MERS, in its role as the beneficiary of the deed of trust, was informed by the loan servicers that the homeowners were delinquent on their mortgages. MERS then appointed trustees who initiated foreclosure proceedings. The primary issue is whether MERS is a lawful beneficiary with the power to appoint trustees within the deed of trust act if it does not hold the promissory notes secured by the deeds of trust. A plain reading of the statute leads us to conclude that only the actual holder of the promissory note or other instrument evidencing the obligation may be a beneficiary with the power to appoint a trustee to proceed with a nonjudicial foreclosure on real property. Simply put, if MERS does not hold the note, it is not a lawful beneficiary. Next, we are asked to determine the “legal effect” of MERS not being a lawful beneficiary. Unfortunately, we conclude we are unable to do so based upon the record and argument before us. Finally, we are asked to determine if a homeowner has a Consumer Protection Act (CPA), chapter 19.86 RCW, claim based upon MERS representing that it is a beneficiary. We conclude that a homeowner may, but it will turn on the specific facts of each case.” * * * “1. Is Mortgage Electronic Registration Systems, Inc., a lawful “beneficiary” within the terms of Washington’s Deed of Trust Act, Revised Code of Washington section 61.24.005(2), if it never held the promissory note secured by the deed of trust? [Short answer: No.] 2. If so, what is the legal effect of Mortgage Electronic Registration Systems, Inc., acting as an unlawful beneficiary under the terms of Washington’s Deed of Trust Act? [Short answer: We decline to answer based upon what is before us.] 3. Does a homeowner possess a cause of action under Washington’s Consumer Protection Act against Mortgage Electronic Registration Systems, Inc., if MERS acts as an unlawful beneficiary under the terms of Washington’s Deed of Trust Act? [Short answer: The homeowners may have a CPA action but each homeowner will have to establish the elements based upon the facts of that homeowner’s case.]” __________________ So, MERS is in big trouble, and the pending “Show Me the Note” cases, in Washington, will keep advancing in the litigation context.

Short Stack
Aug 17, 2012 - 5:45pm

@Nana

Regardless of the info you intended for me to see the one that caught my attention was the new Postal Rules regarding sending cash/metals through the mail.

Just got off the phone with a Rep from my usual online metals dealer. He said he had not heard of this till now and asked for the web address. I gave it to him and he said he'd check into it. If it appears to be a problem they will post some info for alternate delivery. Probably UPS.

Although what I'd read seemed to refer to overseas shipments, recently my daughter had called and said she was sending me some cash in the mail toward a purchase, that was more than a week ago and the money has yet to arrive.

LongGoldLongSilver
Aug 17, 2012 - 5:47pm

Maybe it is too positive of a

Maybe it is too positive of a view, but with the fundamentals so in favor of gold, the shares will be pulled up sooner or later and should validate an extremely bullish long-term pattern in the GDX.

https://www.MiningStockValuator.com -portfolio tracking & analysis of gold and silver stocks

BillAuAgCleburne61
Aug 17, 2012 - 5:50pm

Concerning Russia

Everyone seems to be able to rationalize all the wrong reasons for Russia and China in Syria.

1. Both Russia and China are working hard to avoid an Islamic Caliphate

2. Both China and Russia are deadly enemies of Islam

3. Bashar is an Alawi, mortal enemies of Islam. Obama encourages a Caliphate, and every one else is very worried about one.

4. Why? A Caliphate would put virtually every Muslim in the world under one ruler. Let your imagination run with that.

Short Stack
Aug 17, 2012 - 5:53pm

Re: Civil War Amongst the bankers

Cool picture, Pining..

I see Turd, Green L, looks like a Dagney want-a-be image in there. What Leslie Neelson is doing there I haven't a clue but I wouldn't trust him with a gun.

Why you made us out as the Red Coats I have no idea. Still looking for my little a55 but no such luck. Maybe next time.

Ned BradenShort Stack
Aug 17, 2012 - 5:57pm

@Pining

Another classic my friend. You be giving William Banzai at ZH some competition !

Rui
Aug 17, 2012 - 5:58pm

Bollinger Bands are tightening on Silver chart

Tightening bands always resolve into a sharp move. Now which direction?

On the positive side, the setup looks similar to what happened during July and Aug in 2010, and we are into the strong season for precious metals.

On the cautious side, Morgue increasing their naked shorts is always a concern and QE is not coming soon with the general market being on sugar high now.

Katie Rose
Aug 17, 2012 - 6:00pm

California Lawyer

Thank you for your response!

It seems the ruling leaves as many questions as answers.

I must say I am thrilled that the court questioned the ability of MERS to issue foreclosure papers. YES!!!!!!!!!!!!!!

I guess there will continue to be more litigation going forward. I sure would like to see the banks get a big black eye on this one.

Somewhere, somehow, the people need to win one. It has been far too lopsided up till now.

Now back to the peas.

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