Marc Chandler – Unpacking Market Dynamics: A Deep Dive on Stock Market Soaring, Commodity Breakouts, and Interest Rate Projections
Mark Chandler, Managing Partner at Bannockburn Global Forex and Editor of the Marc To Market blog, shares his insights on market highs, interest rates, and the impact of geopolitical events like U.S. tariffs on commodities.
The discussion also explores global trends in raw resources and economic activity in regions like Europe, South America, and China. Mark delves into central bank policies, including the People’s Bank of China’s efforts to stabilize the housing market, and the potential for future rate cuts by the Federal Reserve. The editorial provides a comprehensive overview of current market dynamics and their potential impact on the future.
Click here to visit Marc’s website – Marc to Market.
Upcoming live event! May 23rd at 12:30pm PDT
- Fury Gold Mines – Updated Resource Estimate At Eau Claire, High-Grade Gold Portfolio in Low-Risk Jurisdictions
- Tim Clark, President and CEO, and Bryan Atkinson, Senior VP Exploration, will join me to recap the recently updated Mineral Resource Estimate at the Eau Claire Project as well as provide a full overview of the Company. The updated Resource is now just under 2million gold ounces.
Bought my first tranche if BBB at 0,125. Let’s see how it goes.
Matt, care to comment on the market dynamics of BBB?
Well it hasn’t been the prettiest picture for Brixton lately but I don’t see that as cause for concern since it seems it is now being treated primarily as a copper explorer despite having plenty of potential for a very good gold discovery or two. The point being that copper is not the main act in the minds of most right now despite its very bullish behavior lately.
Pure explorers often lag the rest during market turns especially when they don’t have bankable or well-defined assets in the ground to provide leverage to the metal that’s easy to calculate with decent accuracy. But the lag is probably mostly because there’s far more fear than greed early in an upturn and certainly no “irrational exuberance” so both the real and perceived risks of the explorers keeps most capital flowing into established producers until the market gets confident that the upturn is indeed real, which is where I believe we are at now. Many are now looking opportunities among those that haven’t moved either because they have profits from early movers or because they are late to the long side of the sector and their due diligence will show them what Brixton has going for it. I’ve been a buyer every day lately and was lucky enough to add about 50,000 shares this morning just before it popped.
Today’s move was strong and happened on big volume and the picture suddenly warrants more than cautious optimism but I still would like to see more strength on Tuesday or at least to finish the week.(Monday’s a holiday in Canada).
https://stockcharts.com/h-sc/ui?s=BBB.V&p=D&yr=1&mn=3&dy=0&id=p09233486326&a=1508803949
As a long-time owner and continued buyer of Brixton I’m biased as can be but would like to think that my perception of the company’s potential is the result of fairly unbiased due diligence.
Copper looks superb even when priced in real money, gold:
https://stockcharts.com/h-sc/ui?s=%24COPPER%3A%24GOLD&p=D&yr=1&mn=3&dy=0&id=p22974141904
Interestingly, copper is still basing versus silver and filled a big April gap today:
https://stockcharts.com/h-sc/ui?s=%24COPPER%3A%24SILVER&p=D&yr=1&mn=3&dy=0&id=p34988026352
This is crazy, I mean the Silver market, when do you ever see Silver go up more than 6% in one day. This is something out of “The Twilight Zone”. You are entering a new dimension one out of sight, one out of mind, “YOU ARE ABOUT TO ENTER “THE TWILIGHT ZONE”! DT
I don’t know why I bother to post here this site is really BORING! LOL! DT
Hi DT. I sure appreciate you posting here on this site, so thanks for keeping the conversation going.
I agree with your point about the big move in Silver today to close the week at $31.26, well above all the recent peaks for the last 4 years, including the #SilverSqueeze peak of $30.35 back in early 2021.
This is hugely significant on a technical basis, and especially nice to see it happen on a Friday to end the weekly candle on a high note.
It was also a huge week and weekly close for Copper. Earlier in the week we had the new all-time high tagged intraweek to $5.128, and a close today at $5.05, which is one copper penny higher than the all-time prior high hit in 2022 during the early stages of the Ukraine conflict. Again, it is super significant that it made the all-time highest weekly close today for the win.
Then we had the Uranium stocks breaking out from their Cup & Handle pattern on the ETFs and many individual stocks, for another bangup close to the weekly charts this Friday.
I’ve been flooded with incoming messages today from investors FINALLY all bulled up on silver/gold, copper, uranium, and even nat gas again.
It was really nice to see so much green on the screen across so many commodities and resource stocks today, and I’ll be addressing all of these things in my weekend Substack article.
For today I put out my next article in the series on junior and mid-tier royalty companies.
______________________________________________________________________________________________
Opportunities With Mid-Tier And Junior Royalty Companies – Part 4
Excelsior Prosperity w/ Shad Marquitz – 05-17-2024
https://excelsiorprosperity.substack.com/p/opportunities-with-mid-tier-and-junior-1e5
Gold:Silver ratio looking good… but getting oversold.
I’ve doubled my portfolio in 10 weeks as of yesterday. However, being a SCZ holder today sucks, haha!🤣 Still, SCZ over a double with some swing and day trades along the way.
Agreed Dan. Gold:Silver ratio is improving like we want to see, where silver is gaining on gold.
As for SCZ, yeah I was a bit disappointed in today’s action, but overall it’s still had a really nice move the last few months, and look at the pattern of higher lows going back to the $0.155 level last September, then $0.17 in November, then $0.177 in January, then $0.18 in February, then $0.222 in March, and then $0.26 in that early May dip.
So all things considered, seeing it get up to the peak of $0.46 a couple days back and still close at $0.40 is still a nice move higher.
Maybe there is a financing on SCZ in the works, the people who know, know. I’m not worried as they have the stuff to invest in anyways. Also, my bank site says they are trading at a P/E of 6.5 and earnings of $0.06/ share… friggin’ great numbers!
EXK bottomed at 1.42 and I was a buyer not far from that level and up to a little over 2.00 and today it hit 3.89 but now it’s time for Impact Silver to outperform once again.
Here’s the 195 minute chart for ISVLF priced in EXK:
https://stockcharts.com/h-sc/ui?s=ISVLF%3AEXK&p=195&yr=0&mn=5&dy=0&id=p11905378666&a=1681770379&r=1715994493774&cmd=print
Huge price and momentum breakout for Silver-Gold ratio…
Here’s silver-gold proxies SLV vs GLD:
https://stockcharts.com/h-sc/ui?s=SLV%3AGLD&p=W&yr=5&mn=0&dy=0&id=p31419878894&a=1681713938
EXK is up 173% but still has a long way to go…
https://stockcharts.com/h-sc/ui?s=EXK&p=M&yr=17&mn=6&dy=0&id=p34671961213&a=1650316018&r=1716005306415&cmd=print
Great call again, maybe time to rotate more into IPT from SCZ like blazesb did.
That seems like a good idea to me but, as you know, that are risks to doing so! When deploying gains from one company I like to buy at least two more to reduce the risk of giving back my gains.
SILJ closed at a 52 week high versus DIA (Dow ETF):
https://stockcharts.com/h-sc/ui?s=SILJ%3ADIA&p=W&yr=5&mn=3&dy=0&id=p00607303190&a=1068499280
Copper stocks are ready to fly.
COPX monthly:
https://stockcharts.com/h-sc/ui?s=COPX&p=M&yr=16&mn=6&dy=0&id=t4398789651c&a=1674232711&r=1716005699244&cmd=print
Copper put in its highest weekly close ever:
https://stockcharts.com/h-sc/ui?s=%24COPPER&p=W&yr=5&mn=5&dy=0&id=p17500132536&a=1638725405
Just the beginning for silver:
https://stockcharts.com/h-sc/ui?s=%24SILVER&p=W&yr=6&mn=0&dy=0&id=p95704912552&a=862056438
Thanks Matthew, very informative.
I recall 2012-2106 when I in 2014 bought miners (most explorers) and was underwater until 2016, I cashed out almost breakeven. I clearly bought the wrong stocks.
Although I like this play it gives me the same vibes, the risk is that we will miss the run up in other high beta/leveraged stocks and see this “just” move 100%.
The positive side is that it comes from ATL so there is plenty of room to go and at a low risk.
My other stocks EDR, Abra, Scz, HL, AG, HMY, SBSW, NFG (disappointing) and few others will have to do the pulling in the PF.
I also bought AAG at 0,21 but missed DEF.
Let’s make some money together and improve our lives, bc we sure deserve it.
Cheers!
Tomas, I never want to talk anyone out of being cautious as there are always risks that can turn a good situation into a bad one but I have to say I have never been so confident about the prospects for the sector as I am now. The long term technical/fundamental developments in this and other sectors that are currently in play represent a once-in-a-lifetime opportunity that wasn’t possible in 2016. While I don’t necessarily expect our gains to match those of 2016 in terms of size and speed (60% of my miners went up 1,000% back then while the portfolio average was about 700%) I do expect our gains to beat 2016 over time. This run will be much longer.
Good luck!
To be clear, those 2016 moves of mine were measured from the lows to the highs and do not represent what I pocketed (I wish).
Thanks Matthew, I appreciate your views and your analysis. You come around as an honest and straight shooting guy.
I wish you the best!
To put you in a difficult spot here, do you see BBB as a ten bagger?
Thanks Tomas. I see Brixton as having very plausible ten bagger potential (and more) but don’t want to predict it since explorers live and die by the drills. However, Brixton’s market cap is low enough that it probably wouldn’t take spectacular drill results to deliver great gains. Continued decent drill results along with bull market psychology should be enough to get us at least half way to a ten bagger. The copper project that captured BHP’s interest is the main focus at the moment and rightly so but speculators will increasingly bid up the rest of the company’s projects/potential because that’s what happens in a bull market eventually. And while those other projects offer plenty to be excited about we shouldn’t lose sight of the fact that BHP became interested for one reason: the clear size potential of Brixton’s copper discovery. Imagine copper hitting 6, 7, 8 bucks and drilling going even partially as we hope. It becomes easy to see how a 5 or 6 hundred million market cap would be reached even without everything else that the company has going for it, like Robert Friedland’s interest in Hog heaven or Thorn’s Trapper Gold Target.
Management calls the company A Multi-Generational Opportunity and I don’t think that’s an overstatement at all so any disappointing drill holes along the way will be nothing to panic over in my opinion.
I wish you the best too!
Your picks are doing well, Matthew. It’s a credit to your skill and experience.
Thanks Terry, I bet your picks are also doing well.
Anyone else getting in to the KTN spinout of Kootenay Resources, KTRI? Looks like maximum insider buying from last financing although smallish.
I haven’t bought or sold KTRI yet but hold about 20,000 shares from the spinout.
Dow Jones Industrial Average Tops 40000 for the First Time
By Karen Langley – Wall Street Journal – May 16, 2024
“The Dow Jones Industrial Average crossed 40000 for the first time, a milestone that appeared implausible a little more than two years ago when the Federal Reserve began raising interest rates to cool an overheated economy.
“Gloom and doom forecasts abounded. When the central bank ended the era of ultralow rates that prevailed in the years following the global financial crisis, economists predicted painful consequences: a U.S. recession and rising unemployment.”
“The recession that so many economists anticipated has remained out of sight, giving investors hope that stocks can keep climbing.”
https://www.wsj.com/finance/stocks/dow-jones-industrial-average-tops-40000-for-the-first-time-52f316a1