Saturday, January 10, 2015

Gold, Russia and Stock Update – Seabridge, Fortuna, Inca One, Exeter, Gold Resource, Timberline, GoldSource

A collapsing oil price and surging US Dollar were unable to bring gold, silver prices lower last month. This firm price action shows the underlying strength of precious metals as we end 2014 with huge physical demand continuing mostly out of Asia, Wall Street however ended 2014 still selling the main GLD-ETF down to 22.7M ounces. This is lower by close to 3M ounces in 2014 and over 20M ounces from GLD’s 2012 peak holdings.

Gold is at a critical technical juncture as 2015 kicks off with a well-defined downtrend around $1,220. If gold can break above this and further at $1,250, the technical picture quickly improves and shows the rally can continue to $1,350 - $1,525. On the other hand, if this resistance holds up, gold will be heading back to supports in the $1,100 range.  (more)

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Petrobras (PBR): This Giant Oil Company Is Headed for Disaster / By Matt Badiali, editor, Stansberry Resource Report / January 9, 2015
Of all the companies hurting from lower oil prices, few are in more danger than Brazilian oil giant Petrobras.
The state-owned oil company owns some of the largest untapped oilfields in the world; so it’s a darling of emerging-market investors. And with shares down around 50% over the past year, many investors now think it’s cheap enough to buy.
But it isn’t. The company’s spending is out of control, its profit margins are shrinking, and its debt is soaring. In short, Petrobras is a study in how not to run an oil company.
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Is Corn Going Higher

Corn Futures--- Corn futures in the March contract finished up $.06 closing right around $4 a bushel as traders are awaiting Mondays critical USDA crop report at 11 o’clock CT showing supply/demand tables as well as production numbers for the year 2014 as I have been recommending a short position in corn right around this price while placing your stop loss above 4.17 risking $850 per contract plus slippage and commission. Many of the commodity markets are heading lower due to the fact that the U.S dollar hit a 9 year high this week and crude oil prices continue to plunge and I have a hard time believing that corn has sustainability up at these levels as I’m sticking my neck out on this trade once again as I do believe the risk/reward is in your favor and I also do believe that South America will produce an excellent crop despite what recent weather reports are suggesting.
Corn prices have had a remarkable rally from the early October lows around 3.20 a bushel all way up almost to 4.20 a bushel up 30% and I believe prices have topped out as if you look at the relationship between ethanol prices and crude oil prices its way out of whack in my opinion as crude prices are sharply lower while corn prices are still relatively high in comparison so I remain bearish, however if we are stopped out at 4.17 on Mondays report its time to move on and look for a better market to trade as you always must have risk parameters at hand. TREND: MIXED –CHART STRUCTURE: EXCELLENT 

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Energy roundup: Don't wait for oil to hit US$40, Sprott analyst warns

Who would have thought that oil would be trading at US$50 a barrel?
But even after a 50% drop from the peak in July, 2014, momentum in the global energy sector could continue to drive prices even lower, possibly down to US$40, says Sprott Global analyst Eric Angeli.
So does that mean investors should stand on the sidelines waiting for the recovery to kick in?
Angeli says no. “Trying to guess where the bottom lies is a fool’s game,’’ he told Stockhouse, during an interview this week. (more)

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On This Day In History, The Baltic Dry Index Has Never Been Lower

Must be over-supply too, right? Just like oil prices... The Baltic Dry Index - which apparently is only relevant when it is rising - has never been lower at this time of year.

Perhaps GDP expectations, bond yields, crude oil prices, and credit risk are on to something about the global economy after all?

Charts: Bloomberg
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USD/CAD intraday technical levels and trading recommendations for January 9, 2015

Three months ago, the price levels around 1.0620 (the lower limit of the depicted chart) initiated the current strong uptrend within the depicted daily channel.
During the past few weeks, the USD/CAD pair established a temporary consolidation zone between price levels of 1.1560 and 1.1670.
Bullish breakout above these zones allowed bulls to reach new highs around 1.1800 and 1.1850 where the upper limit of the bullish channel is roughly located.
As a conservative trader, you should know that price zone of 1.1665-1.1580 remains the nearest SUPPORT zone for the current prices. LONG positions are suggested at retesting of this price zone.
You should also note the wedge pattern being expressed around price zone of 1.1840-1.1860 where the upper limit of the depicted movement channel is located.
This pattern may indicate bearish reversal if confirmed with bearish breakdown of price zone of 1.1800-1.1780.
Trading recommendations:
As mentioned, risky traders should only look for SHORT positions around such high prices. The stop loss should be set as DAILY CLOSURE above 1.1875.
LONG positions are suggested at retesting of price zone of 1.1665-1.1580 which is a newly-established SUPPORT zone. 
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