Sean Brodrick – Investing Strategies For Gold, Nickel, Oil and Agricultural Commodities
Sean Brodrick, Natural Resource Analyst at Weiss Ratings and Editor over at the Wealth Wave website joins us to share his current investing strategies for a wide range of commodities. All commodities have moved up strongly over the past couple weeks while some have gone parabolic. We also drive down into the stocks, especially gold and oil stocks.
Click here to visit the Wealth Wave website and keep up to date with what Sean is investing in.
Buyers were sure waiting for this pullback. The HUI over 4% above today’s low and is still overbought with a RSI reading of over 72 (at 3:12 ET)…
https://stockcharts.com/h-sc/ui?s=%24HUI&p=D&yr=1&mn=4&dy=0&id=p04156174553&a=1115085819
Are you concerned that we may see more of a selloff in the short-term, because today’s candle looks like an inverted hammer? Couldn’t that market a bearish reversal to the downside for a short period?
There is no worry here and don’t let anything worry you ex! We have discussed with Matthew over a long time while many of your guest predicted end of year and even next year a bottom. This is not the case and I couldn’t be more happier then that negative walk of worry and pessimistic talk.
This is folks buy the dip without a doubt says Glen and will continue to grind higher. If any of you folks heard my calls about feb/march/April and may high before direction then you should be doing well. Everyone is so scared shites and concerned and asking what may Happen that I ask if all these questions it’s not a good recipe. Be assertive and confident in your approach.
Buy the dip the miners are going higher 😉
Also get ready for the folks who were so bearish all the guest experts lol who had it so wrong they must be called out we know clearly who they were.
Glen
Yes, former “candy store” hopefuls should consider buying this dip!
Hi Glenfidish. Understood and I’m not “worried” in the slightest, and simply asked if there was any concern for short-term corrective move. That’s much different than worrying, and was more a question around swing-trading as I’m a short duration trader and respect Matthew’s technical perspective.
We had on some guests that did think a final pullback would happen and bottom leading up to the Fed rate hikes or even mid-year, but before you label everyone as bearish, please keep in mind that we also brought on guests that were quite bullish the PMs since the end of September in Q3, pointing out gold and the GDX may have had a bear trap and that this was bullish moving forward, as was the action in the Majors like Newmont and Barrick. I’d say most of the guest were also quite bullish longer term across the board.
We bring on a number of different guests with varying opinions and outlooks to get a range of ideas for people to consider, some bearish and some bullish. It’s good to hear different sides of a discussion, whether that is gold/silver, base metals, oil and nat gas, uranium, tech stocks, bonds, currencies, or any asset class.
I’d agree that any dips should be bought in a bull market, and that is what I plan on doing with the 7% dry powder I’ve raised by trimming back positions over the last few weeks. Cheers!
There’s plenty technically to argue for a few days of corrective action like gold’s bearish engulfing candle but the miners themselves held up very well offering negative leverage to the metals. The metals both fell over 2.5% yet the miners fell less than half as much instead of a more typical two or three times as much.
Because of the overall bullishness of recent developments, I bet the miners will continue to outperform the metals even as the metals remain under pressure at least until GDX vs gold takes out its June high. Then we will probably get a more significant pause.
A couple of days of nothingness would not be a bad thing…
GDX:GLD weekly:
https://stockcharts.com/h-sc/ui?s=GDX%3AGLD&p=W&yr=2&mn=7&dy=0&id=p01652635364&a=1123399783
Thanks for addressing the question Matthew. That was precisely what I was asking about in the very short term, and was also curious how the mining stocks may hold up versus the metals, so glad you touched on that too. Much appreciated!
Absolutely Matthew daily correction could end swiftly or as you say could take few days and that is very understandable after this big aggressive move. It is very clear to a great chartist what is happening and we’re we are going. You nailed it mi the ahi when saying it taking about more specifically the “Divergence” that was Happening and many could have used that as a great opportunity to buy and yes they can become over extended but waiting and being out is nonsense and shows imo a misunderstanding of the longer term picture.
First support for Gold if down from here: 1965
Swing Target: 1931
Soaring Platinum Profits
By Sean Brodrick – March 8, 2022
“Soaring inflation and supply-chain bottlenecks have already lifted the price of this metal to multi-month highs. And now the war — plus justifiably harsh economic sanctions against Russia — threaten to send it even higher.”
“Like gold, silver and palladium, platinum is one of the world’s rare metals. Its presence in Earth’s crust is thought to be just five parts per billion. In fact, it’s so rare, all the platinum ever mined in human history could fit inside the average garage.”
“Most mining today takes place in Canada, Russia, South Africa, Zimbabwe, Australia and the United States. The largest operations are the Russian Nornickel Kola MMC mine, located in Murmansk Oblast, and the Impala Platinum (aka Implats) mine in northwestern South Africa…”
https://weissratings.com/en/wealth-wave/soaring-platinum-profits
Platinum…………. is way undervalued. ….I have been saying that for years……
Should be double Palladium …………….
+2
Jerry platinum will outperform everything you got it and so does graddy!
I’d also point out that Steve Penny has been pointing out since the end of last year and most of this year that Platinum was looking quite attractive technically, even compared to other asset classes and gold and silver.
Here is recent interview we did with Steve last month, and there are some great accompanying charts on Platinum included.
Here’s a link to another great interview with Steve Penny and his charts, a few of which are Platinum ratio charts versus gold, silver, and commodities. Keep in mind this was from January, but the points are still quite relevant on the interesting spot Platinum is at and it’s gross undervaluation relative to many other metals and commodities.
Hello Glen………. thanks for dropping in……… thanks for the thought.
Ex……… thanks for the added post on Platinum….
10-4 good buddy. I just thought Steve’s charts illustrated the potential for Platinum quite well.
Squeezing Dollars out of Nickels
By Sean Brodrick on March 10, 2022
“Thanks to the soaring nickel squeeze, your nickels now cost more than a dime …”
“The London Metal Exchange (LME) suspended the trading of nickel after prices soared 250%, zooming past $100,000 per metric ton. The LME says nickel trading will be suspended at least until Friday.”
“While that’s crazy … things could be crazier.”
https://weissratings.com/en/wealth-wave/squeezing-dollars-out-of-nickels
You think somebody took some profits in gold, take a gander at WTI! About 4.5 times on a percentage basis as gold.
With Resource Nationalism on the rise particularly in countries like Chile and Peru, and with Russia’s commodities being shunned by The West, it begs the question that maybe we will start to see other projects that were not permittable in the past, get permitted. The elephant in that room is Northern Dynasty, I believe they have 55 billion pounds of copper, and 110 million ounces of gold, plus, plus, many other commodities. I think John Kruchke mentioned this the other day. Guess what that particular deposit might just become to valuable not to develop. DT
One would think there would be interest in moving Pebble forward, but it’s had about 5 false starts over the last decade, and never can seem to get the approval. The big hope was that under the Trump administration, where they were focused on reducing regulatory red tape, that it may have a go, but that is much more unlikely under the Biden administration. Still, as you mentioned, its’s a strategic deposit, but it’s been constantly blocked by environmental groups and lobbyists for a long time.
There is still plenty of jurisdiction risk in the US, Canada, Mexico, and Australia in certain areas, but agreed that Chile and Peru and really much of South America is a tough slog. Argentina and Ecuador are still less than desirable IMO. Of course it does often come all the way down the actual local community relations for any project, much more so than the national regulatory framework.
Good finish +6.14% for the day. Oils hit but…
Yeah, it ended up not being as bad by the end of the day as how things opened, and a number of PM companies clawed their ways back into the green. I picked up 2 oil/nat gas plays earlier in the day that closed in the money, and the Uranium stocks went ripping higher (most up 5-10% on the day) on the news that the Biden Administration may place economic sanctions on Russian Uranium (which supplies something like 30-40% of the US nuclear fuel cycle).
U.S. Weighs Sanctions on Russian Nuclear Power Supplier Rosatom
Ari Natter, Nick Wadhams, and Saleha Mohsin – Bloomberg – March 9, 2022
“No final decision has been made and the White House is consulting with the nuclear power industry about the potential impact of imposing sanctions on Russia’s state-owned atomic energy company, which is a major supplier of fuel and technology to power plants around the world, the report added.”
“Rosatom is a delicate target because the company and its subsidiaries account for about 35% of global uranium enrichment and has agreements to ship the nuclear fuel to countries across Europe.”
American Nuclear Plants Reject Biden’s Sanctions On Russian Uranium
Akshay Narang – TFI Global – March 5, 2022
“Most of the large economies in the west are suffering from the energy crisis. High demands and low supplies have resulted in fuel inflation in the EU and even in the US, gas prices are shooting up. As if this was not enough of a predicament, now sanctions loom over the Russian uranium sending American nuclear plants in a tizzy.”
“Reuters reported that, amid escalating tensions between the US and Russia, US power corporations are pressing the Biden administration not to prohibit Russian uranium shipments, arguing that it is critical to keeping local electricity cheap.”
Symbol – Uranium Stocks – Daily Change %
LTBR Lightbridge Corporation +29.97%
PWM.V Power Metals Corp. +16.33%
PEN.AX Peninsula Energy Limited +15.79%
AGE.AX Alligator Energy Limited +13.64%
DYL.AX Deep Yellow Limited +13.02%
LOT.AX Lotus Resources Limited +12.90%
BMN.AX Bannerman Energy Ltd +10.64%
LEU Centrus Energy Corp. +10.43%
BOE.AX Boss Energy Limited +9.25%
CUR.V Consolidated Uranium Inc. +9.16%
API.CN Appia Rare Earths & Uranium Corp. +9.09%
92E.AX 92 Energy Limited +8.74%
CVV.V CanAlaska Uranium Ltd. +8.06%
LAM.TO Laramide Resources Ltd. +7.79%
UEC Uranium Energy Corp. +7.63%
FCU.TO Fission Uranium Corp. +7.45%
CCJ Cameco Corporation +6.96%
DNN Denison Mines Corp. +6.79%
UUUU Energy Fuels Inc. +6.72%
NXE.TO NexGen Energy Ltd. +6.69%
URNM North Shore Global Uranium Mining ETF +6.60%
STND.V Standard Uranium Ltd. +6.52%
EU.V enCore Energy Corp. +6.33%
GXU.V GoviEx Uranium Inc. +5.88%
ISO.V IsoEnergy Ltd. +5.66%
UROY Uranium Royalty Corp. +5.61%
URA Global X Uranium ETF +5.60%
TOE.AX Toro Energy Limited +5.56%
QRC.V Queen’s Road Capital Investment Ltd. +5.48%
FUU.V Fission 3.0 Corp. +5.26%
URG Ur-Energy Inc. +5.11%
MKA.V Mkango Resources Ltd. +5.00%
1164.HK CGN Mining Company Limited +4.82%
BSK.V Blue Sky Uranium Corp. +4.35%
MAW.TO Mawson Gold Limited +3.85%
AEC.V Anfield Energy Inc. +3.85%
FIND.V Baselode Energy Corp. +3.49%
GGG.AX Greenland Minerals Limited +3.33%
AEE.AX Aura Energy Limited +3.08%
U-UN.TO Sprott Physical Uranium Trust Fund +2.86%
WUC.CN Western Uranium & Vanadium Corp. +2.38%
VO.V ValOre Metals Corp. +2.00%
FMC.V Forum Energy Metals Corp. +1.92%
NLR VanEck Vectors Uranium+Nuclear Energy ETF +1.77%
SYH.V Skyharbour Resources Ltd. +1.35%
GLO.TO Global Atomic Corporation +0.21%
Hey Lakedweller2: How about that Kooteney finish?
Kootenay almost got sold today.
Up + 40% or so in a couple of weeks but Copper Lake does that constantly and doesn’t have a resource.
I have had Kootenay about 5 times but this is the lowest starting price.
The miners had a stealthy good day as all the ETFs easily beat gold and silver and their ETFs.
SILJ:GLD finished up 1.82% to close at its highest level since mid January…
https://stockcharts.com/h-sc/ui?s=SILJ%3AGLD&p=D&yr=1&mn=3&dy=0&id=p19183598535&a=836612833
Bob Moriarty: https://aheadoftheherd.com/mills-moriarty-4-junior-stock-picks/
A good line from the interview ‘the Fed can print all the money they want to, all they do is destroy the value of the money. It’s very funny that the Fed says we’re going to fix inflation, where the hell do you think the inflation came from in the first place?’
Gundlack the ‘Bond King’ makes a similar case for commodities in interview over on Kitco. He and BM are bullish precious metals but advocate commodities over all else because of ongoing destruction of fiat currencies.
SILJ vs LIT is a good example of why you should often ignore those who consistently try to talk you out of taking positions on significant weakness (or strength).
https://stockcharts.com/h-sc/ui?s=SILJ%3ALIT&p=W&yr=3&mn=3&dy=0&id=p28841524822&a=997294166
Nice sell off today which might continue in the short term—–we should then move up again to take out the previous high or double top. A lot of good bargains as we are developing trading ranges as this is probably in the early months a bottoming year.
Hi doc,
Hope all is well! Your last status was over 80% cash Ex would know i leave that to the experts. Can you please clarify how mush cash your currently in?
It sounds like you have changed your stance and acknowledge bottomed in miners is in and just getting going? If that’s the case I do ask why so much cash position why not go in?
Glen, good to hear from you. I never go all in in stocks—–I keep picking away at stocks both in the conventional markets and PM markets when they’re scrapping the bottom. I’ve been purchasing some biotech stocks now (slowly) that have just been crushed and PM stocks—I’m disappointed in the reaction of PM stocks to this PM move—-remember when we were at a high for gold in August of 2020 almost all of these stocks were at higher levels. I just look for stocks in both categories that look like they’re bottoming and have picked up my purchasing. There’s no hurry since there will always be buys in different sectors.
Thanks doc for Clarifying.. Yes there are many miners that look very attractive here and personally I’m about 2.2% left in cash so not much to play. There are great and amazing bargains so I hope you do go in and nail them.
What are your thoughts on oil? Boy that has been on a tear and my thinking is at the very least a double too at 150 barrel five or take possibly before a good correction. I did mention last week about this parabolic run. It needs to steam off at some point. When it does I think i will finally go in and buy some oil plays. I expect miners to outperform just about everything.
Doc your thoughts on housing in Canada.. are we finally doomed and will we get the bust or correction needed after 30 years plus of bull market. Rates seem set to go higher finally
Thanks
Even though we had a big reversal today in oil, I would expect we’ll try to move up again to the high and then hang around at a high level for a few weeks. When people start to throw around $200-$300/ barrel, you know were getting close to a top. I think if the conventional market continues to move down which in all probability is a good bet you’ll start to have a “wealth effect” with the housing market—you add that to increase rates by the FED and we’re due for some cooling off for that market. If looks like we’re headed for a flattening of the yield curve which if it happens; that along with the dropping stock market is probably signalling a recession by the end of this year. Those 2 factors won’t be friendly to the housing market.
Always a downer to watch the flush, which we all knew had to come but I’m pleased that most of my Jr.s are holding up real well. A couple are positive. Fury for example. I believe this morning was simply a profit taking event and many are now re-buying along with new buyers. I’d like to see gold just grind higher instead of the action we saw yesterday and the day before.
Interesting discussion on nickel. I’ve got no exposure but did read this morning that the lowly nickel is now worth over a dime. I’m a collector from today on………..