Category: General

Gold And Silver Companies With The Potential To Move The Needle

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The two times mining companies add the most value are upon first discovery and when they are nearing development and production. Joe Reagor of ROTH Capital Partners focuses on the latter group, and in this interview with The Gold Report, he discusses a handful of gold and silver companies poised to move up the value curve even if gold and silver don't go up.

Gold Six-Month Chart

The Gold Report: What's your macro outlook for gold?

Joe Reagor: International debt concerns are going to drive gold this year into next year, in our view. A number of countries with mounting debt loads can't continue to pay the interest portion of their debt, let alone ever pay it back. Total world debt continues to increase year after year. If the solution is for everybody to print the money that they need to pay everybody else back with, that's going to be a massive inflationary event, which would bode well for gold.

TGR: Silver has been up dramatically vis-a-vis gold. Do you expect that trend to continue? Continue reading "Gold And Silver Companies With The Potential To Move The Needle" →

Weekly Futures Recap With Mike Seery

Posted on by The INO.com Team

We've asked Michael Seery of SEERYFUTURES.COM to give our INO readers a weekly recap of the Futures market. He has been Senior Analyst for close to 15 years and has extensive knowledge of all of the commodity and option markets.

Michael frequently appears on multiple business networks including Bloomberg news, Fox Business, CNBC Worldwide, CNN Business, and Bloomberg TV. He is also a guest on First Business, which is a national and internationally syndicated business show.

S&P 500 Futures

The S&P 500 futures in the June contract settled last Friday in Chicago 2059 while currently trading at 2040 right near a 4 week low and if you have been following any of my previous blogs you understand that I do not trade this very often. However, the setup is starting to become favorable as I want to keep a close eye on a possible short position next week. The S&P 500 is trading below its 20-day but still above its 100-day moving average as we are right near major support I do want to see the chart structure to tighten up as the 10 day high is 2094 risking around 55 points or 2,800 per contract plus slippage and commission which is too high of monetary risk to enter at this point. The monthly unemployment report was released this morning stating that the United States added about 160,000 new jobs below expectations with the unemployment rate at 5% having little impact on today’s price as I will keep a close eye on this market as volatility should definitely start to increase as the old saying states “sell in May and go away” as that’s exactly what’s happened so far. Continue reading "Weekly Futures Recap With Mike Seery" →

Oversold Airline Ready For A Quick Rebound

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By: Michael Kahn of Street Authority

Trading countertrend moves can be profitable but risky, so it pays to line up as many factors as possible in our favor before putting money to work.

When a stock sports a price-to-earnings (P/E) ratio that even a technical analyst such as me thinks is low, it's worth a look. When it is oversold at support, I'll get interested. And when the price of its main input commodity starts to fall, I'll consider a quick snapback trade.

This is the case with American Airlines (Nasdaq:AAL).

I will admit that as a chartist, looking at fundamentals gives me the willies, but AAL has a trailing P/E ratio of just 3.1. That's not only insanely low compared to the SP 500, which has a P/E ratio of 19.1, but it's less than half of the industry average of 6.3. Even based on next year's earnings, AAL trades at just 5.7 times estimates.

The stock has fallen more than 20% in the past month and a half, but the recent drop in oil prices following a multimonth rally could result in a short-term pop in AAL.

Oil prices cratered 2.5% Tuesday on expectations that U.S. crude inventories hit a new record high. This was the third straight session of losses, and oil prices are now more than 5% off their 2016 highs made last week. But AAL's action on Tuesday leads me to believe this could be a great spot to enter a quick bullish trade. Continue reading "Oversold Airline Ready For A Quick Rebound" →

Precious Metals Every Bit as Explosive as Secretariat at the Belmont Stakes

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The charts tell the story, says precious metals expert Michael Ballanger, adding that the mining and metals market have the forward momentum of Secretariat as he clinched the Triple Crown.

Today's missive is going to be exceedingly "chart-infected," because many times a picture is worth one thousand words, especially in the case of the precious metals markets these days. I put on a 2% hedge prior to the FOMC meetings and the Wednesday press release and have since removed it, taking a small hit versus the mindboggling leap in my GDXJ position and associated advances in the juniors (KAM.V over $2). That's the beauty of a "hedge" versus a "short," and that is precisely what I have been thinking since the COT moved above 200,000 Commercial net shorts a few weeks back, with the gold and silver prices refusing to retrace.

One look at the chart below and you are immediately struck by the "shock and awe" campaign of "no corrections," where the market doesn't allow traders to buy back their favorite mining positions at prices representing only the meagerest of percentage pullbacks. In fact, after nearly 40 years of trading the miners, I have never ever seen a market with such awesome power behind it that is truly such a wonder to behold. The HUI has exploded out of the post-FOMC gate like Secretariat at the Belmont Stakes in 1973. (If you ever want to see an incredible feat by a horse, watch the Youtube clip of the race that clinched the first Triple Crown in 25 years AND was won by an incredible 25 lengths.) Just as that horse left the pack at the halfway point of the race, precious metals are massively outperforming the SP by a vast margin, and are forcing the money managers to be dragged into the market, teeth clenched and fingers clawing the ground. Continue reading "Precious Metals Every Bit as Explosive as Secretariat at the Belmont Stakes" →