Login

Energy & Commodities

Sentiment Indicates Extremes of Emotion for Lots of Commodities

Share on Facebook Tweet on Twitter

Posted by Bob Moriarty via Streetwise Reports

on Friday, 26 January 2018 05:55

Goldbullbear630Bob Moriarty of 321 Gold discusses the role of sentiment in the commodities markets and what it means for investors.

We have an interesting situation where a number of commodities are pressing at sentiment extremes all at the same time. Since the S&P and Nasdaq are both US stock market indexes, it is perfectly natural for their sentiment readings to be similar. After all, the indexes are alike in that they are bundles of different shares. In the same way, you can reasonably assume that the DSI for gold and silver to be close, they are both precious metals.

....continue reading HERE

 



Banner

Energy & Commodities

Run with the Bulls … Especially These Four!

Share on Facebook Tweet on Twitter

Posted by Sean Broderick - The Edelson Institute

on Tuesday, 23 January 2018 06:38

On the seventh day of the seventh month in the north of Spain, you will see about 3,000 men — some old, mostly young, all brave — gather in the town of Pamplona.

They are there for the nine-day Festival of San Fermín. They are there to run with the bulls.

Running with the bulls at Pamplona isn’t for the lily-livered. Ernest Hemingway described it this way: “It’s like being shot at, and missed!”

But now, you don’t have to risk a horn though the guts to run with the bulls. What’s more, you can make a mountain of money, doing it, too.

I’m talking about the great, big, snorting bull market right in front of you …

The bull market in commodities is pawing the ground and ready to roar. Just look at this chart of the Thomson Reuters Commodity CRB Index. Or the CRB Index (NYBOT: CRB), for short.

crb

There are many kinds of bulls in Pamplona. And the CRB Index is comprised of 19 different types of commodities: aluminum, cocoa, coffee, copper, corn, cotton, crude oil, gold, wheat. But its weighted toward energy (33%).

The important point is that ALL the bulls are running. Some will run faster; some will run slower. If you can grab on to a fast bull, you can go very far indeed.

How far? This cup-and-handle pattern on the chart gives us a minimum target that is 11% higher from recent prices.

Stocks that are leveraged to commodities can do much better.

Now, what if I told you there is a massive force that is putting Tabasco under the tails of these bulls? It’s a potent mixture … one that could spur these bulls to run further and faster than many dream possible.

It’s in this chart right here …



Read more...

Banner

Energy & Commodities

You'll Want to Read This Living Legend's Thoughts On Copper

Share on Facebook Tweet on Twitter

Posted by Robert Friedland via Frank Holmes

on Tuesday, 23 January 2018 00:00

COMM-robert-friedland-frank-holmes-shaft-01192018Last week the U.S. Global Investors office was visited by a living legend in the junior mining industry, billionaire founder and executive chairman of Ivanhoe Mines, Robert Friedland. In case you don’t know, back in the mid-1970s, Robert was caretaker of an apple orchard south of Portland that one of his buddies from Reed College would often visit. That buddy’s name was Steve Jobs, who later went on to found a little company he named—what else?—Apple.

Before Robert and Steve Jobs began palling around, Jobs was known as shy and withdrawn. It was Robert who taught him his skills in what’s been described by many as “reality distortion.” Having seen numerous speeches by Robert over the years, I can attest to his masterful ability to utterly command a room of hundreds with his electric charisma. Some of that charisma must have rubbed off on Jobs, helping the future iPhone innovator evolve into the shrewd, larger-than-life business leader he’s celebrated as today.

Robert’s “reality distortion” was on full display during his visit. I was pleased and honored, as were my U.S. Global team members, to have the opportunity to hear his unique insights on a wide range of issues, from the debilitating smog in Delhi, India; to China’s efforts to become the world’s leading electric vehicle (EV) economy; to Ivanhoe’s development of the Kamoa-Kakula Copper Project in the Democratic Republic of Congo, independently ranked as the largest high-grade copper discovery in the world.

Robert made a very compelling case for Kamoa-Kakula, which he calls “the most disruptive Tier One copper project in the world today.” In its first year of production, its average copper grade is estimated to average an ultra-high 7.3 percent. Because the site is flat and uninhabited, and wages are paid in local currency, the cash cost for the life of the mine is projected to be a low, low $0.64 per pound of copper. As of my writing this, copper is priced at $3.20 a pound, so the margin is significant. After an initial $1.2 billion in capital costs to develop the project, the company expects a payback period of only 3.1 years.

It’s all a very attractive proposition.

Robert Friedland: You're Going to Need a Telescope



Read more...

Banner

Energy & Commodities

Crude Oil - Sharp PullBack In Progress

Share on Facebook Tweet on Twitter

Posted by Nadia Simmons & Przemyslaw Radomski

on Friday, 19 January 2018 05:31

Who Will Take Control in Oil Market? #2

Although the EIA weekly report showed that crude oil inventories dropped for a ninth straight week and distillate stockpiles fell more than expected, U.S. production outweighed positive news. But did yesterday price action change anything in the technical picture of black gold?

Yesterday’s report showed that crude inventories dropped by 6.9 million barrels easily beating expectations for a decrease of 3.5 million barrels. This significant decline was mainly led by a record drawdown of 4.2 million barrels at the U.S. storage hub in Cushing, Oklahoma. What’s interesting, it was the largest weekly draw since 2004. Despite this bullish fact and a decline in distillate stockpiles, U.S. crude oil production rose 258,000 barrels per day to 9.75 million bpd last week, which means that the barrier of 10 million bpd could be broke quite easily in the coming week.

This also suggests that we may see short-lived moves in both directions before the release of another government report as investors may want to wait for a significant fundamental factor that would sink the price of black gold before opening big short positions.

Nevertheless, such a pro-bearish signal that could trigger a move to the downside may also be today's Baker Hughes report. If it shows a bigger increase in the number of oil rigs, oil bears will likely react before today’s market closure or on Monday – similarly to what we saw in the past.

Before we see how the number of oil rigs changed in the recent week, let's check how yesterday's price action influenced the technical picture of crude oil.

Crude Oil’s Technical Picture

The long-term hasn’t changed much since our Wednesday alert was posted, therefore, if you haven’t had the chance to read about the broader perspective, we encourage you to do so today. Today, just like yesterday, we’ll focus on the daily chart (charts courtesy of http://stockcharts.com).

2018-01-19-wtic-D

From today’s point of view, we clearly see that the overall situation in the very short term also hasn’t changed much, because crude oil wavered the second day in a row, which resulted in another doji candle. Taking this fact into account, we believe that what we wrote yesterday remains up-to-date also today:



Read more...

Banner

Energy & Commodities

U.S. oil industry set to break record, upend global trade

Share on Facebook Tweet on Twitter

Posted by Reuters

on Thursday, 18 January 2018 06:01

Screen Shot 2018-01-18 at 7.07.17 AM
HOUSTON (Reuters) - Surging shale production is poised to push U.S. oil output to more than 10 million barrels per day - toppling a record set in 1970 and crossing a threshold few could have imagined even a decade ago.

And this new record, expected within days, likely won’t last long. The U.S. government forecasts that the nation’s production will climb to 11 million barrels a day by late 2019, a level that would rival Russia, the world’s top producer. 

The economic and political impacts of soaring U.S. output are breathtaking, cutting the nation’s oil imports by a fifth over a decade, providing high-paying jobs in rural communities and lowering consumer prices for domestic gasoline by 37 percent from a 2008 peak. 

Fears of dire energy shortages that gripped the country in the 1970s have been replaced by a presidential policy of global “energy dominance.”

....continue reading HERE

also from Reuters:

Strong China data cranks up pressure on bond markets - Global Borrowing Costs at 10 month High

 



Banner

<< Start < Prev 1 2 3 4 5 6 7 8 9 10 Next > End >> Page 5 of 217

Free Subscription Service - sign up today!

Exclusive content sent directly to your Inbox

  • What Mike's Reading

    His top research pick

  • Numbers You Should Know

    Weekly astonishing statistics

  • Quote of the Week

    Wisdom from the World

  • Top 5 Articles

    Most Popular postings

Learn more...



Our Premium Service:
The Inside Edge on Making Money

Latest Update

If It Ain't Broke, Don't Fix It

This month I update two long-time favourite stocks from our Canadian Growth Stock Research -  Boyd Group Income Fund (BYD.UN:TSX) and Enghouse...

- posted by Ryan Irvin

Michael Campbell Robert Zurrer
Tyler Bollhorn Eric Coffin Jack Crooks Patrick Ceresna
Josef Mark Leibovit Greg Weldon Ryan Irvine