Wednesday Market Wrap with Big Al and Doc
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Happy Birthday U.S. Bull Equity Market!
And OIL ! Is under CONTROL ! https://www.youtube.com/watch?v=4jAPWsxvNzc
DOC and AL ! Don’t worry GOD is in control !
In my humble opinion . HELLCAT Hillary Clinton is the winer ! Only GOD know’s !
and Bill is the bun………
Franky is that you?
Jonalin are you Franky?
HELLCAT — I love it!!
Yes. HE is, Has been and always will be
Franky was also Xing Xang for a stretch of time 🙂
I know. I actually like the guy but his overdose of anti catholicism did start to make me angry!
I tell you a story i picked ! https://www.youtube.com/watch?v=K2vIqzjWC3c
Day are bezy the same way . And much more sophistication ! And the population is in the same denial ( AS 1940 to 1945 ) ! https://www.youtube.com/watch?v=VVOvFCZX6uM
YES REALY ONLY TRUST NO MONEY NO NOTING ! ONLY GOD ! https://www.youtube.com/watch?v=0xZ-3bwMz24&ebc=ANyPxKrVV89SwDuRw8YmIc9JIB0HDu2KTCeqck1xzl8B2EPJT5NV_iPqS8UJnm66hY0gEXgkr5Zf
Jonnalin (Franky) (Xing Xang):
– What country do you live in?
– Do you work for Youtube?
– Do you have any Gold or Silver stocks?
“Don’t worry!!! Cool is the way! Buy Gold!!”
“THEY”……………need to go.
Iran test-fires missiles reportedly stamped with Israel threat
Iran test-fires missiles reportedly stamped with threat against Israel
U.S. Democratic presidential front-runner Hillary Clinton on Wednesday called for sanctions against Iran after it brushed off U.S. concerns and test-fired two ballistic missiles that it said were designed to be able to hit Israel.
Iranian state television showed footage of two Qadr missiles being launched from northern Iran, which the Islamic Revolutionary Guards Corps (IRGC) said hit targets 1,400 kilometres away. Iranian agencies said the missiles were stamped with the Hebrew words, “Israel should be wiped from the pages of history,” though the inscription could not be seen on any photographs.
http://www.cbc.ca/news/world/iran-missiles-march-9-israel-threat-1.3483995
Some folks (middle east) are just stupid!
People should wake up and understand………….WE THE PEOPLE DO NOT VOTE FOR ANYONE…………..We live in a REPUBLIC, where your representative, can say anything, promise any thing, and then can legally change his or her mind at will., their will, not the people’s will………………….
In the primary….we the people have a chance to vote….for the least of the evils presented to us. Selection of the one who might be the best of the worst, hoping that the worst we can live with.
It’s death of Empire, whether the market is propped up or not.
If it is propped up, eventually we die Zimbabwe style.
If it is not propped up, we repeat the Great Depression of the thirties on steroids.
There will be some stocks that will go up, regardless. This will be a stock-pickers market.
But in the end, we’re all dead anyway.
Yes, we certainly are, CFS
small hands is not out of place.
Its the marketing the people want.
Its how we think, check out funniest home videos, we laugh at children harming themselves daily.
We are a “cultured” people.
Absolutely Doc, a collapse, we need to “pull a pheonix” rise from our ashes, we will, how is the question.
Al,
You’re comments on the election were very interesting and your recent comments about not throwing your vote away. Trump is raising such a torrent is that the establishment cannot control him. He is not a corporate shill like the others. But, he has never held public office. I don’t even think he knows how a bill becomes law. To vote for him as the leader of the free world ???? Hmmm. Yes, Hillary is a lying sack of $#%!. But, she is entrenched with the establishment. That is why she will get the nomination aka super delegates. People who like Trump are disenfranchised. They say f$%^ the system, blow it all up. Hillary will preserve the status quo. The system is too big for one person to make a difference. But, the choice in November will be tear it all down (Trump) or keep the status quo (Hillary). How you vote probably depends on how your standard of living has increased or decreased over the last 8 years…
‘leader of the free world’.
This is maybe my favorite line that demonstrates just how ridiculous mainstream thinking is. That it can even be uttered without being laughed out of the house says it all. Maybe it made sense 60 years ago…before my time.
I do agree with you about Hellary.
Al,
I understand the comment after that debate. Trump did him self no favors with some of those goofy comments. I was annoyed with him as well.
What is funny……….the sheeple love it………….circus and bread……
Yeh, I was really disappointed too. The circus is coming to town!
Al, it has to do with the politics as it has been. How Trump behaves in these debates may have rubbed you in wrong way. However consider this. Unlike any other Presidential candidates, Trump walks into the debates with no script, no practice, no mock sessions, etc. He just walks in there and speaks his mind. He is saying, ‘This is me. I am a very competent guy with common sense and these things are what I plan to do as the President. And I play to win – even if it takes belittling the junior Senator from Florida.” To me, he comes across as a very genuine person. I have been a ‘Trump slappie’ from his announcement day…
Is that why he flip-flopped like a fish in the sun on the beach over the H1B visas? First he’s against them, then in the debate he’s for them, then an hour after the debate he’s against them again. This guy is just telling everyone what they want to hear . . . and then the Trump sycophants don’t hear the things they don’t want to hear . . or make bizarre excuses for him . . .
To me, and perhaps to many others, ‘the politics of Donald Trump’ makes a lot of sense.
Of course it does . . . rising power crazed megalomaniacs are usually “adored by the people” . . .
You may not like him. But Trump is the Man who would be King.
WHAT HAD ANY SENATOR DONE ………..beside enrich themselves………
had to has
FFM, he lives under the bridge. Bet ya.
Very little ootb
Me too Jay Linn.
Al, thanks for responding to my precious comment.
“previous”
It was also precious…. 🙂
One thought on throwing away your vote … if neither Clinton or Trump meets your standards, then consider a third-party choice like the Constitution Party or the Green Party. The only way to put an end to the two-party dictatorship that controls this country is if people start voting for 3rd party candidates instead of feeling like they can only choose Republican or Democrat.
A vote for Clinton or Trump is a throw away vote anyways since 1 vote is not going to make any difference in who wins your state.
PF you are making some good points, thank you.
EUROPE ! IS SLEEPING AND FALLING ! https://www.youtube.com/watch?v=b_34nsXCRKA
The daily chart in gold is showing a completed triangle and back test of the breakout. This is a triangle as opposed to a continuation pattern. That means the breakout over the triangle formation is probably going to be the height of the triangle, besting the previous peak of 1308.
Oh, I forgot. There is a second moving average crossover, of the 50-day MA over the 300-day MA. The weekly chart of the gold price is showing an imminent crossover of the 13-week EMA over the 89-week EMA.
Well … this should get the trading robots excited – it just doesn’t happen every day !
“There is a second moving average crossover, of the 50-day MA over the 300-day MA”
Yes, and a mild divergence today with PM equities.
I think PM equity investors were anticipating a deeper gold price downdraft, which did not materialize.
Thank you for confirming this.
It was VERY ODD: At one point today, the entire PM sector was static, as if levitating. No pushing. No pulling. Just there.
Yes indeed, FranSix, many thought a big plunge was a done deal.
Fran (Matthew & Ex, included of course)
Some TA people have a target for US$1385-1450 for this UPWARD leg. Any comments?
The current market is really odd, so I don’t expect any predictions to be correct; just asking for viewpoints.
Me? I think we are on a trajectory very similar to the 2009+ years: Very fast gains, then re-tracement(s) down to a MAX of the Fib 32%
Brian
Yes, I’ve seen several models project Gold into that $1385-$1450 area after taking a step back. Some are using Fib retracements or Elliot Wave to arrive there. For me it is simply a matter of Gold closing above some of the prior peaks and I’ve been very consistent about watching 1307.80, $1346.80. 1392.60. Above that the last big peak was the August 2013 @ $1434. So once Gold closes definitively above $1308 and $1346.80 then it will start hitting a high congestion zone between the lessor peak at $1361.80 – $1434.
I’d also like to reiterate the point that Dragonite made last week about the big drop on super high volume back in April of 2013 down to $1321.50. I agree that point on the chart was significant, and it will be bullish when gold can close above that level.
Here is a 4 year Gold chart that show these peaks visually for a lay of the land:
http://stockcharts.com/h-sc/ui?s=%24GOLD&p=D&yr=4&mn=0&dy=0&id=p19651040725
Hedging is certainly warranted now based on the daily chart but the weekly chart is in charge so weakness should be bought – and we might get some for a week or a little more if gold doesn’t get moving tomorrow.
The weekly chart is not overbought and I think there’s a very good chance that we have many more weeks before we get a top of any significance (one that lasts for months).
I want gold to finish this week above the 150 week MA at about $1236.
When it comes to comparing this move to past cycles, I’m with Jeff Kern:
“I do “know” two things. First, this is a UNIQUE index pattern. Therefore, when you read analysts’ predictions based upon any bull markets since 1974, THIS ONE WILL BE DIFFERENT.”
——————
Before anyone gets worried about what looks like “this time is different” talk from Jeff, I want to point out that he is talking about the 42 year period that his research covers.
For all we know, this cycle might be very similar to one that began in the 1930s.
(Note that Jeff’s SKI system is based on the gold miners not gold.)
Here’s a piece by Jordan Roy Byrne almost 7 years ago that’s just as worthwhile today.
Gold and Gold Stocks Behaviour During Deflation and Inflation
It’s like I’ve been saying, that there’s a psychological resistance level that gold prices will overrun, the same as in 2005, when gold prices were said to never go above $500. My guess is that most people in the gold space don’t have this resistance level in mind, but outside of the gold space there are people willing to hedge their equity declines with a gold investment. Gold’s volatility is very low, meaning mining shares won’t advance unless the volatility is much higher. That situation might change if gold prices are perceived to reach a certain round number.
Thanks for all the perspectives. It’s been fun the last month watching the miners perform.
THANKS MATTHEW………………for the deflation and inflation article……….j
Yes, that was a good article from Jordan back in 2009 on the kinds of environment where Gold and gold stocks prosper most. I think this scenario Jordan covers sums up the deflationary and pre-inflationary environment we find ourselves in today:
“The reality is that the precious metals complex outperforms AHEAD of reinflation, while the rest of the commodity sector outperforms DURING the ensuing inflation.”
“Gold stocks perform best when their margins are expanding. That can happen when the price of Gold stays flat and cost inputs (oil, steel, labor) fall. It can happen when gold rises and rises faster than cost inputs. When inflation begins to take hold, the precious metals complex has already anticipated it. Inflation raises the cost of everything. As the cost of steel, oil and labor rise, it hurts the profit margins of gold producers. Hence, gold companies outperformed during the deflation and early reinflation of the 1930s, but underperformed during the inflation of the 1940s.”
Personally my strategy is to be weighted heavily in the Precious Metals stocks now in this deflationary environment and ride them up as Gold & Silver rise into the pre-inflation and early inflation environment. Then when inflation gets going, I’ll transition those funds over to Base Metals, specialty metals, Soft Commodities / Agricultural stocks, and will focus mostly on energy stocks. I see that happening about 2 years out.
I’ve been going on about the real price of gold for over a year now and many disagreed with my view that gold being at three (now four) decade highs versus oil was very bullish for the gold miners.
I still don’t think even most bulls are bullish enough about the prospects for the gold miners.
Avi wrote that “…silver still has lagged significantly, and has not even struck my lowered target for the top of a wave I in the 17 region. This leaves me open to the greater potential that silver may see a lower low…” and that he maintains “…a 40-50% approximate probability as to whether it has struck its final lows.”
————–
I have to disagree. Based on the action in the little silver miners, I’d conservatively put the odds at 80%. Ok, 77%. 😉
I think the dollar is about to pull what gold did three years ago.
Sorry Matthew I can’t agree. My sophistication intuition tells me 76.8!
I think copper is about to make another short term push higher. 20%+ wouldn’t be surprising.
I think I will stay in your camp Matthew……A….is no PM man…..jmho
I don’t know Frank, Al might be little more rational on this one. I’ll at least give in to 76.9 🙂
A……is not AL……………
Oh, thanks for clearing that up. 😮
Interesting thought on copper, Matthew. What is it about the chart that leads you to think that?
GH, it’s partially the breaking out of that fork and taking out the 200 MAs, but my guess is also based on my view of silver and the dollar.
I know it doesn’t seem likely but I think $18+ is coming soon for silver.
I’m all in, btw. Profits I took were plowed right into technically and/or fundamentally safer situations within the sector. The exception was UEX (uranium) which is a winner I no longer have.
Remember Oslo ? Day control all ! Paris shooting ! and much more day play US ALL !!!!! https://www.youtube.com/watch?v=MKYzB6z_yA8
Think a littel ? https://www.youtube.com/watch?v=ecFyOZ-nwXM
Yes, Day do play us all.
Trump pisses off the Pope……must be doing something right!
I think that Al’s thoughts on Trump and the election in general are spot on.
I too don’t like it when Trump berates his candidates – or when any candidate gets personal with another – it berates themselves. I wish they’d just focus on the issues.
That said, I am still wondering if/when Hillary will be have her day in court over the email allegations. It it were you or me, we’d be in court and (if true) in jail already. Justice is slow with the rich.
And on gold, I do hope the good Doc is right that we get a correction. And if it makes a higher low I’ll start to buy.
Kind of shows you where our society is in this wonderful day and age.
Jay Linn did have some good points above.
Then again, so does Doc.
If trump were more intelligent, better read, and more thoughtful he’d be perfect…I like him now for all his faults…as a Canuck I like Bernie Sanders even more… who (in spite of being called a socialist) is really more of a new deal kind of guy…he just wants affordable post secondary education and health care…especially when nearly 100 million people are out of work… or more working part time or full time for low wages…or 2 jobs that don’t cover health insurance.
I truly have nothing against Sanders!
Remember he is not in the category of Lenin, Trotsky or Stalin and many think that he is.
Socialism is evil.
Sanders is a progressive Marxist, in my opinion, he would bankrupt the country into Zimbabwe style monetization in less than 3 years, if he manage to get Congress to go along with his crackpot ideas. Sure the people love freebies, but look what the Big Zero’s Obama phones, Obama care (Which really has not fully impacted yet) and freebies for illegals has done to the economy.
Yep CFS, just look!
Obama works for fascist oligarchs which explains the absence of regulation.
No such thing as no regulation. Look no further than Ebay. How are gubmint goons regulating Ebay? Free markets (that includes enforcing lawful, as in, biblical, contracts and punishing lying and stealing in ALL its forms) regulate THEMSELVES!
Cfs, Canada has balanced or near balanced budgets at the national level most of the time, lower corporate tax rates, comparable personal income tax rates …for those making under 200k, average university tuition of just $6000/yr vs…30k/yr + in comparable ivey league schools? I’ve twice had my life saved by public health care which costs about 13% of gdp where everyone is included and no one dies uninsured…vs 40k deaths/yr for the uninsured in the us at a cost of 18% of gdp (initially I was a c-section) our public pensions are fully funded on a gaap basis (not cash basis) vs 19 trillion in public debt and 200 trillion in unfunded obligations like medicare medicaid and social security… and coming deficits under our leftist pm Trudeau are to be spent largely to be spent on infrastructure.
I personally don’t think it matters much who gets elected in the US unless they’re willing to discuss the problems that the media won’t even discuss…like Sanders is. I’m sure Canadians are in some way slaves to banks…but our government seems to be run by a bright centrist middle class.
So your muggers are ok because they spend what they steal more responsibly, in you opinion.
It’s because of the fact that your view is so common that the world can’t get off this trajectory of economic destruction and diminished individual freedoms. The masses have no moral aversion to unprovoked violence as long as it results in the satisfaction of their need for goodies that appear to be paid for by someone else.
In principle, all socialism is the same and it is wrong. Slavery has only expanded over the last 150 years but the masses are too indoctrinated by their captors to see it.
The democratic debate just became, who’s the best of open boarders and amnesty.. …great..
DEMOCRACY……..we do not have…………we have a REPUBLIC………We the PEOPLE, have handed over our voice to a party of 535 people, who seek their own rewards.
A REPUBLIC ……..coming to an end.
All is not lost, and better days are coming……….
From listening to the media who won last night: Trump or Cruz?
Check the WSJ……Trump and Cruz tied for delegate votes last night!
Now tell me the broadcast media is trying to get a weak candidate( Trump) chosen to run against the democrat nominee.
I wonder if Cruz is in it to be kicked out later due to the birthing issue and hand the election to hillary!?
Jim Rodgers thinks this is not the end of gold’s correction.
http://thecrux.com/jim-rogers-this-isnt-the-end-of-the-correction-in-gold/
He’s said that for a while, and is still eyeballing $965 Gold if memory serves.
Jim also is expecting an increase in the US Dollar, and recently sold his Yen position.
Which is pretty weird really because Yen on a monthly chart is on its way up implying a huge 5 to 6 year bull run for gold. Why anyone listens to Jim Rodgers anymore is beyond me. So many of his market calls are contradictory to what actually takes place. Recall he was in the bear camp on stocks for most of the past 7 years since the Credit Crisis. People listened to him and his negative outlook and ruined their portfolios. The guy is working for interests that are not beneficial to the average investor.
I tend to agree Farmer in Canada and his portfolio of assets and long term conservative time horizons don’t track the needs of the average investor.
Jim Rogers is a sharp guy -there’s no doubt about that, but he’s not very accurate with market timing or price projections, and humbly mentions this. Jim lives in Singapore and as someone that lives in a financial stronghold of Asia, runs a commodity fund, and is considered a commodity expert, then I usually like to consider his macro view.
In a recent interview he put out some thoughts that he was 100% sure (I always question anyone’s 100% certainty) the US was going into a recession, and that he was long the USD and selling his Yen. He also expected a year or so more of weakness in the general commodities, which is more bearish than I’d expect from Jim. It kind of left me scratching my head, and did give me pause to take a step back and re-evaluate my thesis.
Now it is possible that the USD is working it’s way to the apex of a flag pennant, and theoretically could break out to the upside and hit that $1.05 target that some analysts have. If that did play out it would pressure commodities, and maybe Jim will be vindicated.
Personally, it is very hard for me to know where this Dollar is going and it has been stuck in a range. It will come down to the currency wars of course, and what the Euroland does, with the Bank of Japan does, and if the Fed keeps hiking rates.
I do respect his continued sporting of the bow tie though. Classic. 🙂
ditto FARMER…….”on why anyone listens to JIM RODGERS anymore is beyond me.”…Rodger made on big call with the help of Soro and has lived on that for 30 yrs.jmho
I would say that since he runs one of the largest commodity funds that he probably has some insights into the macro picture, but I’ve noticed the last few years that he’s been so swept away with his daughter and assimilating with the Asian community, that he may be slightly out of touch with the global dynamics at work.
As I’ve been saying for a while, investors and the media have too much tunnel-vision with the China story, and neglects to track the rest of Asia (Thailand, Cambodia, Laos, S. Korea, Laos, Vietnam, Russia & India & Indonesia), S. America, Africa, the Middle East, and segments of Europe. While the growth in emerging world economies may be muted at present, it is a big world developing out there. (a big world that is going to want “stuff” and need energy to power this “stuff”).
Just as long as they do not want my stuff…………… 🙂
They may want your real estate or what you have buried in the fish pond.
Real estate is always on the attack……….taxation without representation
I just watched this video with Randy Smallwood (CEO of Silver Wheaton) and thought it was worth posting for the good and balanced discussion on the Streaming Model.
___________________________________________________________________________
Streaming deals to tick up in tough market
Mon, Mar 7, 2016 – 11:30 AM
A look at Silver Wheaton’s plan to boost its gold exposure, with Randy Smallwood, President & CEO of Silver Wheaton
Using “Equivalent silver ounces” works great at 80:1 ratio, but it is bordering on deceptive.
SLW is one of my biggest holdings.
Randy did mention that their name may not be as fitting now as it once was as “Silver” Wheaton, now that over 40% of their income comes from Gold streaming deals. Now as for Silver Wheaton using Silver equivalent ounces with a 40% Gold credit is just to convert everything to the same asset measurements, and it still gives you an indication of their metrics.
As for the Silver Equivalent ounces, it is just unifying measure of ore production, so if Silver miner does this with Lead & Zinc credits, or a Gold miner does Gold equivalent ounces with Copper credits, it doesn’t really bother me. As long as the combined ore mix is quantifiable, and one can see how it impacts costs and revenues, then I’m fine with it. Almost every mine is polymetallic to some degree, so there will always be credits that effect the Silver or Gold equivalent ounces.
Good observation.better perspective.
Thanks Marty. I appreciate your insights as well. Keep the good ideas and trading targets on specific stocks coming.
How can you trust Trump?
Just listen to:
https://soundcloud.com/glennbeck/drudgereports-downward-spiral-3916
Recently, we’ve been talking a lot more about the Lithium space heating up, and rightly so. Lithium prices have rocketed up over the last 5 months, and there are a crop of Juniors that survived the last lithium bubble meltdown, have real assets and development stories, and are moving into production.
I’ve discussed why Orocobre, Western Lithium, Pure Energy Minerals, Galaxy Resources, Lithium X, and Nemaska Lithium are top in class for Lithium Juniors.
The 3 largest Li companies that are losing their market share to the new companies are: Sociedad Quimica Y Minera de Chile, FMC corp, and Albemarle Corp.
Other interesting companies are Bancora Minerals, Aberdeen International, Lithium Exploration Group, Dajin Resources, Ultra Lithium, Stria Lithium, Houston Lake Mining, International Lithium corp, Critical Elements Corp, Altura mining, Li3 Energy, Nevada Sunrise Gold, and Posco.
For batteries there are a few companies I’m watching: Electrovaya Inc and Oakridge Global Energy Solutions
Even the rare earth company Avalon, has shifted its focus to Lithium now as Avalon Advanced Materials. Just today I saw a press release about Standard Graphite buying 8 Lithium properties. So things are starting to get a bit frothy, but that is momentum comes into play, and where picking the quality companies from the hype is critical.
I believe that Nemaska Lithium is one of those quality companies. (Just to clarify I am Not a shareholder at this point, but am considering taking a position on a pullback). I am a shareholder of Orocobre, Western Lithium, Galaxy, and Pure Energy Minerals and have made some cake lately trading these companies.
Here is BNN’s coverage of Nemaska Lithium at the PDAC.
____________________________________________________________________________
Prospects for electric cars boosts Nemaska
Wed, Mar 9, 2016 – 11:10 AM
Shares of Nemaska Lithium are higher as auto manufacturers vie to bring electric cars to more drivers. A look at one Canadian lithium project, and how it compares against low-cost South American operations, with Guy Bourassa, President and CEO, Nemaska Lithium.
I watched this earlier and there is a nice segment on Lithium, so I’ll post it as well.
Talking Gold, Lithium & Donald Trump With Chris Berry
Mar 09, 2016 – from the PDAC
I wonder if graphite might be better to concentrate on right now for lithium ion batteries..
I’ll answer my own question with a no.
In this case the research group, led by Licht as well as Cary Pint, a professor of mechanical engineering at Vanderbilt, demonstrated a greater degree of control over the process. By adjusting various parameters, they produced carbon nanotubes that are “tailor-made” for anodes in lithium-ion and sodium-ion batteries, says Pint. In the lab tests the batteries containing the new anodes remained stable throughout many charging cycles.
Looks like carbon nanotubes might eventually replace the graphite anodes.
Carbon, graphite, graphene, it all has it’s place. I have not followed the Graphite space as closely as the Lithium space, but here are some of the companies I’ve gathered together.
Lomiko Metals, Focus Graphite, Fortune Minerals (just on BNN at PDAC), Canada Carbon, Graphite One Resources, Archer Exploration, Buxton Resources, Hexagon Resources, Lincoln Minerals, Valence Industries, Graphite India, Lara Exploration, Great Lakes Graphite, Big North Graphite, Flinders Resources Ltd, Alabama Graphite Corp, Eagle Graphite, Manis Resources, and Energizer Resources.
Please let me know if there are any other Carbon or Graphite companies you are following or if any of these trip your trigger.
At this point, I don’t own any graphite companies, but am trying to sort out the real companies from the marketing fluff.
I don’t own any graphite companies.
I just think the lithium space might be getting crowded.
I’m always looking around for new ideas.
I like biotech, but the companies are so hard to evaluate.
I agree that the lithium space may be getting crowded, but after spending about 5 years researching the sector, I truly believe that some of the quality companies I mentioned above like Orocobre, Western Lithium, Pure Energy Minerals, Galaxy Resources, and Nemaska Lithium have potentials to grow much much further from here and the dynamics in the entire sector are changing and breaking up the old paradigm.
Orocobre just made it into production last year so they are a relative fledgling company, but got of the gates faster than most. Before last year with Orocobre only Talison Lithium had made it into production as a stand alone Lithium producer.
The big 3 (Sociedad Quimica Y Minera de Chile, FMC Corp, and Albemarle Corp) are all chemical conglomerates and none of them are solely focused on Lithium.
Talison Lithium was the first company to get seriously into production as a stand alone company, and Rockwood Holdings bought them out half way in 2012, and made an offer, but then Chengdu Tianqi Industry bought the entire operation in 2013 using the China Investment Corporation sovereign wealth fund. On the Nemaska Lithium video above, their CEO, Guy Bourassa, made a great point:
Prior to 2009 the big 3 in Chile had 85-90% of the market, and now 6 years later, they only have 50% of the market because of China and Australia. Now, the hard rock Lithium projects have found ways to compete with the Salar brine of Chile, and the other brine deposits are held by the companies previously mentioned.
Western Lithium has their organoclay mines and production already in motion and bringing in revenues, and their primary lithium project already has a pilot plant and has successfully produced high quality 99% purity Lithium product. They are building out and will be in production soon.
Pure Energy will be in production soon and have been a standout company on the TSX top 50 stocks, and will be a great growth story and potential takeout target. It is worth knowing about it as it is a Lithium story the market has responded to very well.
Galaxy Resources have 2 great projects, and are cashed up after their sale of the Jiangsu battery factory to Sichuan Tanqi Lithium (another Chinese takeover). However, after restructuring and with all that money, they are pursuing their 2 Lithium projects and have the means to do it. In the past an off-take agreement was signed with Mitsubishi and as of this week 2 major Chinese buyers for the Mt Cattlin spodumene concentrate inked a real deal.
Check out this press release:
BINDING LITHIUM CONCENTRATE AGREEMENTS SIGNED
8 March 2016
http://www.galaxyresources.com.au/media/announcements/435ntnpygd96pt.pdf
In addition to Lithium, I still believe that there are few good renewable energy stories to follow, and energy storage or energy efficiency companies that have real businesses and real potential growth.
Of course, as we discussed last week the agricultural stocks can keep things interesting.
If you have any other good investing ideas, keep em’ coming. I pretty much only trade individual stocks on the resource and energy sectors, and use ETFs, ETNs, or funds for every other sector or bond or currency.
Pure Energy has been a nice one to trade the last year. Owned it for a year @.22-.23, tripled my shares and ready to sell 1/2 again @ .80.
I believe it is going to head over $1+ by early 2017.
Especially if they can honor the agreement with the Tesla Giga-Factory.
Corporate Presentation for Western Lithium.
http://www.westernlithium.com/wp-content/uploads/2015/01/WLC_Presentation_January_20161.pdf
Corporate Presentation for Pure Energy Minerals
CFS – As for Biotech – I just use the ETFs (IBB) (XBI) and the leveraged (LABU) and (BIB).
Individual companies are too risky and I don’t know how to evaluate their intellectual property fairly.
Gary Savage feels strongly that Biotech could make a big move into a blow-off euphoria phase over the next year or 2. Just in case that happens I want some Biotech ETF exposure, but I’ll likely sell the rips and buy the dips.
Owned IBB since $137 and sold @ $306. Won’t touch it again until back over $300+
Would you expect a move over $300 in IBB to confirm a new breakout then?
Ex, that is what the 6×24 monthly is telling me on IBB.
Thanks Marty. I just wanted to clarify that is what you meant.
Al I am surprised that your a Trump supporter. You know Trump wants to ban all muslims from entering the US. Do you agree with that?
GOLD………nice bounce back …………1261
ECB news………….more QE, and negative rates.
Should pop higher, I would think…………
Big turn around in the USDOLLAR………..
Check out Gary’s thought on the dollar going down……….GOLD SHOULD pop to 1308
GOLD……..up $15, looking good………………
I don’t understand why the ECB can manage to send the euro rocketing up via a Frankfurt press conference.
Don’t those idiot bankers understand?
It is a crazy world……..and the idiots…….are idiots….
And the EU just banned frankfurters, so as not to upset muslims, didn’t they.
WHAT A JOKE………….
Germans are going to be mad……..next will be the beer……….
That could cause a revolution!
Next, they will be having you stomp your grapes……….
Really?
boosts QE – business live
The European Central Bank has thrown the kitchen sink at the eurozone, by slashing the headline interest rate to zero and increasing the bank’s money-printing programme
Summary: ECB cuts interest rates, but euro actually rises
Growth and inflation forecasts cut
ECB to pay banks to lend money
And the EURO GOES UP
INSANITY
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