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BMR Morning Market Musings... - BullMarketRun.com

June 19, 2017

BMR Morning Market Musings…

Gold has traded between $1,244 and $1,254 so far today…as of 11:15 am Pacific, bullion is down $8 an ounce at $1,245…Silver is off 17 cents at $16.52 (updated Silver charts in today’s Morning Musings)…base metals are firm…Copper has climbed 3 pennies to $2.58…Nickel has also added 3 cents to $4.06…Crude Oil has slipped 31 cents to $44.33 while the U.S. Dollar Index has rallied one-third of a point to 97.46

Weighing on Gold last week was a drop in holdings of physically-backed exchange traded funds to 55.231 million ounces from 55.654 million ounces when the Fed raised rates and pushed the Dollar Index to 2-week highs…however, the greenback’s rebound is merely a dead cat bounce given a deteriorating technical picture…very strong resistance begins at 98 on the Dollar Index…Gold, meanwhile, could drop a little more but support is powerful in the $1,230’s

A number of Federal Reserve officials this week will give their first public comments following the central bank’s decision to raise interest rates last Wednesday, and that began this morning with William Dudley who addressed business and community leaders in Plattsburg, New York…

Dudley aligned himself with Chair Janet Yellen in declaring his expectation that a tight labor market will eventually trigger a rebound in inflation data that has been unexpectedly weak in recent months.  “We’re pretty close to what we think is full employment.  Inflation is a little bit lower than what we would like, but we think if the labor market continues to tighten, wages will gradually pick up, and with that, we’ll see inflation get back to 2%.”

Of course, we’ve been hearing that same tune from the Fed on inflation for how many years now?…

Dudley also sounded a positive note on the U.S. economy overall, while saying the central bank wanted to tighten monetary policy “very judiciously” to avoid derailing the expansion that began in mid-2009

Traders have raised their outlook on a rate hike by the Fed’s Dec. 1213 policy meeting to 45% from 41% late on Friday, CME Group’s FedWatch tool showed…

Taking On Tesla

The electric car market continues to heat up with new entrants looking to take on the likes of Tesla and traditional automakers in the space…Chinese start-up CHJ Automotive is the latest player looking to come to market…the company is currently developing 2 vehicles – an “ultra-compact” electric car, and a hybrid SUV…co-Founder Kevin Shen did not reveal the names of the vehicles, hoping to keep them a surprise until later, but did reveal to CNBC that the company is aiming for a launch in March 2018 for the compact car…

$200 Million Cobalt Deal

Cobalt 27 Capital Corp. (KBLT, TSX-V) has priced its public offering of 22.2 million post-consolidated common shares at a price of $9 per share…the $200 million offering will consist of 10.9 million shares being sold for gross cash proceeds of $98,319,780, and 11.3 million shares being issued to acquire 1,205.6 tonnes of physical Cobalt for a total cost of $101,680,245…both the offering and the purchase of physical Cobalt under the Cobalt contracts are expected to close concurrently on or about June 23…the Venture Exchange has conditionally approved the listing of the shares being sold under the offering…

eCobalt (ECS, TSX) is trading at highs not seen since early April this morning while the still undervalued and top northern Ontario Cobalt play, Castle Silver Resources (CSR, TSX-V), has just raised another $1.2 million and is only a nickel shy of its multi-year high reached in mid-April…underground sampling continues at the Castle mine (1.8% Cobalt and 8.6% Nickel highlighted initial assays) while drilling starts shortly…CSR could soar on strong results from quartz-carbonate veins containing high-grade Cobalt and Nickel that were left untouched by previous operator Agnico Eagle (AEM, TSX) which focused on mining exceptionally high-grade Silver…

Venture Short-Term Chart

Last week, the Venture’s RSI(2) plunged to levels not seen since the bear market bottom in January 2016…we’ll see in the coming days if a reversal starts to gain traction, though it’s possible the Index may have to briefly push below its rising 300-day moving average (SMA) around 770 as it has done in every bull market going back the last 15 years…

The EMA(8) and EMA(20) are effective indicators for monitoring Venture short-term swings and reversals…note the short-term downtrend line from the April high of 838…a move above 800 would conquer the downtrend line…

Crude Oil Update

Oil prices are a little soft again today after a 4-week slide due to rising production in the United States, Libya and Nigeria…signs of faltering demand have also prompted weakening sentiment, dropping prices to levels not seen since before OPEC’s output cuts were first announced late last year…

Data on Friday showed a record 22nd consecutive week of increases in the number of U.S. Oil rigs, bringing the count to 747, the most since April 2015Goldman Sachs said if the rig count holds, U.S. Oil production would increase by 770,000 bpd between the 4th quarter of last year and the same quarter this year in the Permian, Eagle Ford, Bakken and Niobrara shale Oilfields…

CRB Index Update

Weakness in Oil has taken its toll on the CRB Index which has fallen below support around 177 which held for more than a year…it’s now reasonable to expect the CRB to test base support at 160 which should create conditions for a strong reversal at some point during Q3

The CRB is off 1 point at 172 as of 11:15 am Pacific

In today’s Morning Musings…

1. Cannabix Technologies (BLO, CSE) update…

2. iCo Therapeutics comes to life…

3. Daniel’s Den  how investors can profit from North America’s 4th largest Copper deposit…

Did you know that for as little as just over $2 a day, you can be a BMR subscriber and tap into the best analysis and picks for the junior resource sector that you’ll find anywhere?  Last year’s BMRTop 50 List returned a whopping 118% and we are delivering market-trouncing returns again in 2017BMR was the first to call the new bull market in the Venture in early 2016, and our coverage of the commodities space gives you valuable daily insights into price movements and critical trends.  BMR is daily information that puts you ahead of the crowd!

We also give first-time subscribers an industry-leading 100% money-back satisfaction guarantee.  If you don’t believe BMR has helped you make money for your first 6-month subscription period, we’ll refund your subscription fee in full – no questions asked!

Did you know that for as little as just over $2 a day, you can be a BMR subscriber and tap into the best analysis and picks for the junior resource sector that you’ll find anywhere?  Last year’s BMRTop 50 List returned a whopping 118% and we are delivering market-trouncing returns again in 2017BMR was the first to call the new bull market in the Venture in early 2016, and our coverage of the commodities space gives you valuable daily insights into price movements and critical trends.  BMR is daily information that puts you ahead of the crowd!

We also give first-time subscribers an industry-leading 100% money-back satisfaction guarantee.  If you don’t believe BMR has helped you make money for your first 6-month subscription period, we’ll refund your subscription fee in full – no questions asked!

To read the rest of today’s Morning Musings, sign up NOW or login as a current subscriber with your username and password.

12 Comments

  1. What is your thoughts on ICO gentleman does this have legs where do you see it going ??

    Comment by Bernie — June 19, 2017 @ 1:11 pm

  2. Quiet times…. cricket … cricket …. hope its the calm before the storm

    Comment by Weatheritout80 — June 19, 2017 @ 4:24 pm

  3. and where do you think those 1200 tonns of cobalt will come from ??? my guess is from the most Advanced cobalt play on the belt… the castle mine ..

    Comment by herman — June 19, 2017 @ 6:04 pm

  4. Chart really caught our attention Friday; could accelerate in a hurry on traction thru 6 cents, Bernie.

    Comment by Jon - BMR — June 19, 2017 @ 6:41 pm

  5. Always a good sign, weatheritout80.

    Comment by Jon - BMR — June 19, 2017 @ 6:42 pm

  6. Hi Jon, When will we hear more at CSR Beaver site where the sample was done in 2013 ?

    Comment by donald — June 19, 2017 @ 7:05 pm

  7. Cobalt hits new 2017 and decade high – $26.31

    Comment by Jon - BMR — June 19, 2017 @ 10:26 pm

  8. MYM NUTRACEUTICALS TO BUILD ONE OF WORLD’S LARGEST GREENHOUSE (1.5 MILLION SQUARE FEET) CANNABIS GROWING FACILITIES IN WEEDON, QUEBEC

    MYM Nutraceuticals Inc. has signed an exclusive deal with the Municipality of Weedon, Que., to build a 1.5-million-square-foot cannabis production facility consisting of 15 100,000-square-foot greenhouses. Once the entire project is completed and licensed, it would be one of the largest grow operations in the world, with the potential to produce over 150,000 kilograms of cannabis per year, or $750-million annually.

    This is a first-of-its-kind partnership where a municipality has partnered with a cannabis company to build a major production facility. The agreement is unique as Weedon will purchase the 329 acres of land for MYM to build the project on.

    The Weedon agreement was signed by a subsidiary of MYM, CannaCanada Inc., a Montreal-based cannabis company that MYM purchased 75% of. By the completion of the project, MYM will own 90% of CannaCanada Inc. CannaCanada’s strong ties with Weedon city officials allowed MYM to also obtain full exclusivity regarding the future development of any cannabis or hemp-growing facilities within the municipality.

    Comment by Jon - BMR — June 20, 2017 @ 6:35 am

  9. GTT – now this is an update!
    The summer 2017 exploration program at Saddle, now underway, has multiple components, presently anticipated to unfold as per the following tentative schedule.

    Camp construction Complete
    Ground based IP geophysical survey, ~20 line-km June 17 – June 28
    RC drilling, 76 holes, up to 2,000 metres June 20 – July 4
    Drill pad building June 21 – June 30
    Archaeology survey June 28 – July 1
    Trenching July 1 – July 5
    Diamond drilling, 22 holes, ~2,600 metres July 5 – July 28
    Soil sampling, ~1,200 samples July 6 – July 26
    Drill pad building July 8 – August 18
    Laboratory assay results July 10 – September 1
    Downhole surveying July 15 – July 30
    Water quality survey July 17 – July 20
    Ground IP survey #2 August 1 – August 12
    Diamond drilling, # holes TBD, ~3,000 metres August 3 – August 24
    Additional work TBD

    Comment by david — June 20, 2017 @ 6:39 am

  10. Hi Jon is there any signs of life at Cpo?

    Comment by Donald — June 21, 2017 @ 1:09 am

  11. CPO has gone quiet since it started drilling a month ago, Donald…they’ll have to start ramping it up.

    Comment by Jon - BMR — June 21, 2017 @ 4:52 am

  12. First Cobalt and CobalTech both halted at the same time pre-market this morning, pending news.

    Comment by Jon - BMR — June 21, 2017 @ 5:04 am

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