Saturday, November 22, 2014

Chen Lin Says Gold Miners Need to Produce at $1,000/oz or Less to Survive

The Gold Report: You've discussed in your newsletter Goldman Sachs' plan to "push gold [down] to $1,000/ounce" ($1,000/oz). How do you know such a plan exists?
Chen Lin: I am not a big fan of conspiracy theories, but Goldman published a report in early September calling for $1,000/oz gold by the end of 2014. As I saw it, this call was quite aggressive. Goldman will lead and probably has been leading a group shorting gold aggressively. (more)

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Man Who Telegraphed Dutch Repatriation Says U.S. Gold Gone / November 21, 2014
The man who astonishingly telegraphed the Dutch gold repatriation nearly 30 days ago said today that the U.S. gold hoard, which countries believe is safely stored at the New York Fed, is gone.  A portion of his remarkably accurate dispatch on October 23rd is below as well as a link to the entire piece.  There is also a written piece from him below about today’s announcement and what the shocking ramifications of this announcement are.
First, here is just a small portion of how Egon von Greyerz telegraphed today’s stunning news to his subscriberson October 23rd, nearly one month before today’s public disclosure about the Dutch repatriation:
“We have heard from one very reliable source that repatriation of gold is secretly taking place at this moment from the USA to Europe. This is October 2014!
The information contains details about transported quantities by one of the global security firms being much higher than usual, as well as country of destination.
The mere fact that this repatriation of gold appears to be happening in secret confirms what wealth preservation investors have always known, namely that Gold should be held under direct control of the owner. That is the only proof that the gold actually exists.”
Below is today’s commentary from Egon von Greyerz, the man who knew about the Dutch gold repatriation ahead of the rest of the world:
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Ariad Pharmaceuticals Inc (NASDAQ: ARIA)

ARIAD Pharmaceuticals, Inc., an oncology company, is engaged in the discovery, development, and commercialization of medicines for cancer patients. It offers Iclusig (ponatinib), a tyrosine kinase inhibitor for the treatment of adult patients with chronic myeloid leukemia, and Philadelphia chromosome-positive acute lymphoblastic leukemia in the United States and Europe. The company is also developing Iclusig for other blood cancers and solid tumors, such as gastrointestinal stromal tumors, acute myeloid leukemia, and certain forms of non-small cell lung cancer; and various investigator-sponsored trials in indications, including first line and second line CML, acute myeloid leukemia, non-small cell lung cancer, and medullary thyroid cancer.
Take a look at the 1-year chart of ARIAD (Nasdaq: ARIA) below with added notations:
ARIA has been trading in a broad, sideways range for the last 4 months, while forming a common pattern known as a rectangle. A minimum of (2) successful tests of the support and (2) successful tests of the resistance will give you the pattern. ARIA’s rectangle pattern has formed a $6.50 resistance (red) and a $5 support (green). At some point the stock will have to break one way or the other.

ARIA is trading within a rectangle pattern. The possible long positions on the stock would be either on a pullback to $5, or on a breakout above $6.50. Short opportunities would be on a rally up to $6.50, or on a break below $5.RMD has a 52-week resistance at $53.50. The possible long position for the stock would be on a breakout above $53.50.
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Dollar Comments

I am going to keep these comments short mainly because I am utterly exhausted after the roller coaster ride from this week's markets.

The one thing that stands out, now that the dust has settled, is the action in the US Dollar.

One look at the chart and you can easily see the desired currency of choice among global investors. For all its problems, and there are many, the US Dollar remains the "Go-To" currency. The reason I say this is very simple - The Dollar put in the highest WEEKLY CLOSE in 51 months! It is also less than a full point away from taking out the peak made in June 2010. If it does, it is headed to 90. (more)

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The Levered Canary In The Coalmine: High Yield Is Flashing A “Sell Signal”, Says Barclays / by Tyler Durden on 11/21/2014 14:03
The growing divergence between equity and credit markets this year have seldom been far from our pages(especially how, over many cycles, credit has led and stocks followed at trend turns), and now it appears Barclays also recognizes this fact. As they note, in 2007, as hints of the financial crisis were unveiled, spreads in the high yield market increased sharply. Meanwhile, the equity market climbed to a new record high. Had equity investors heeded the warning being sent from high yield, significant losses may have been avoided… and currently high yield sell signals suggest equity investors should position defensively!
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Gold Daily and Silver Weekly Charts – Comex Option Expiration Monday / 21 NOVEMBER 2014
Next week will be a short trading week because of the US Thanksgiving holiday.
Monday will be the last Comex option expiration for the year, for the December contract. We may wish to brace for shenanigans. We are reaching a more critical point in the markets, but do not, absolutely do not, expect this to be easy.
The big changes come when we least expect them, and then as a thief in the night. Betting on short timeframes with leveraged bets is a losing trade 99 times out of 100. And if you hit it big one time, you may chase that adrenalin high again and again, until you are exhausted by the time things really break your way.
Gold and silver continue to dribble out of the Comex warehouses. For a quiet month we saw a bit of gold taken out of New York.
n the Hill and shamed them as well. Until there is reform, there will be no recovery.
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ResMed Inc. (NYSE: RMD)

ResMed Inc. develops, manufactures, distributes, and markets medical equipment for the diagnosis, treatment, and management of respiratory disorders, with a focus on sleep-disordered breathing. Its products portfolio includes airflow generators, diagnostic products, mask systems, motors, and headgear, as well as other accessories, such as cold passover humidifiers, carry bags, and breathing circuits; and humidifiers comprising H5i and H4i, which connect with the continuous and variable positive airway pressure, and AutoSet flow generators to humidify and heat the air delivered to the patient to prevent the drying of nasal passages.
Take a look at the 1-year chart of ResMed (NYSE: RMD) below with added notations:
1-year chart of ResMed (NYSE: RMD)
After moving significantly higher from March until June, RMD has since moved into a large sideways range. During that time the stock has also created a strong resistance at 53.50 (purple). RMD bottomed at $46 for a second time back in October and now appears to be making another run towards 53.50.

The Tale of the Tape: RMD has a 52-week resistance at $53.50. The possible long position for the stock would be on a breakout above $53.50.
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