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

eyeswideopen
Aug 17, 2012 - 6:04pm

Streetmoney21

Worth the watch for our seasoned Turdites, and plenty of info for those folks just catching on. Speaks with real sincerity toward the end of the clip.

Buy gold and silver, then what?
BillAuAg
Aug 17, 2012 - 6:05pm

All the Red Coats

I believe it is a modification of the British Engineering company stand at Rourke's Drift against the Zulu nation.

Aug 17, 2012 - 6:05pm

Ha! Thanks guys

Ned- I appreciate it, but he is a true professional and I am the amateur. It is fun to mess around, though.

ShortStack- I actually did this some months back during a particularly nasty raid, but I will work "the stack" in when I do another at some point! This was actually a painting of the defense of Roark's Drift, hence the British colonial uniforms- pictured are Murphy, Xty, BOG, EO, SWS, GL, TF, S Roche, Art Lomax, and the Leslie Nielson avatar is my man Desert Fox.

Xeno
Aug 17, 2012 - 6:06pm

@LongGoldLongSilver

Too positive.

Not to be a party pooper but in a cup and handle formation, ideally the volume would be inverted to the bowl and decline on the handle.

Or at the very least decline during the handle formation.

Prize Fighter
Aug 17, 2012 - 6:23pm

tyberious RE: Hunt Bros.I

tyberious RE: Hunt Bros.

I believe the Hunt brothers acquired a lot of physical silver. Perhaps enough to have an effective corner on the market. Either way, they got the bright idea to increase pressure on the market by leveraging their physical position with paper contracts. One day shortly after that, they woke up to increased margins which forced them to liquidate their stack. Pretty much the same story the banks face today. I love the classics.

I've also always had a fascination with levers, block and tackle pulleys after my introduction into physics and dynamics. Amazing the amount of work which can be done with 1/4 the input with a proper block and tackle or a long enough lever. Just be sure not to get caught on the short end of the stick, and the dollar has a very loooong stick :)

Nana
Aug 17, 2012 - 6:25pm

Silver

https://www.wealthdaily.com/resources/the-best-silver-stocks

The Best Silver Stocks

An unprecedented crisis in the silver market could easily hand you a long series of double... triple... even quadruple investment gains with silver stocks.

Metals experts have repeatedly indicated that 2012 is the year for silver as it's positioned to become the world's hottest commodity.

Here's how...

You probably already know that every commodity fortune ever made was created by an imbalance of supply and demand.

When the demand for a certain commodity is high and supplies are low, prices skyrocket. And investors holding the commodity in question gain profits.

This is exactly what has happened in the case of many natural resources just in the past decade alone:

  • Crude oil shot up 620% in 6 years

  • Gold is now up over 700% since 2001

  • Uranium spiked 830% in 4 years

  • Copper increased nearly 530% in 7 years

  • Palladium more than tripled in 3 years

  • Platinum prices grew 430% in 6 years

As demand grew and supplies dwindled, the prices for these natural resources ballooned in value.

But none of these commodities experienced the supply/demand crisis that silver is currently facing.

Take a moment to chew on this to see why silver is expected to outperform gold amidst this year's market conditions..........

Short Stack
Aug 17, 2012 - 6:37pm

@Pining 4 the fiords

Wow, gracias my man.

Will probably be getting calls for work soon. I'll check back often though.

Nana
Aug 17, 2012 - 7:01pm
treefrog
Aug 17, 2012 - 7:01pm

rourke's drift

flashman was at rourke's drift.

(little known historical factoid)

Dyna mo hum
Aug 17, 2012 - 7:09pm

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