Best of the Week
Most Popular
1. TESLA! Cathy Wood ARK Funds Bubble BURSTS! - 12th May 21
2.Stock Market Entering Early Summer Correction Trend Forecast - 10th May 21
3.GOLD GDX, HUI Stocks - Will Paradise Turn into a Dystopia? - 11th May 21
4.Crypto Bubble Bursts! Nicehash Suspends Coinbase Withdrawals, Bitcoin, Ethereum Bear Market Begins - 16th May 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.Cathy Wood Ark Invest Funds Bubble BURSTS! ARKK, ARKG, Tesla Entering Severe Bear Market - 13th May 21
7.Stock Market - Should You Be In Cash Right Now? - 17th May 21
8.Gold to Benefit from Mounting US Debt Pile - 14th May 21
9.Coronavius Covid-19 in Italy in August 2019! - 13th May 21
10.How to Invest in HIGH RISK Tech Stocks for 2021 and Beyond - Part 2 of 2 - 18th May 21
Last 7 days
Coinbase vs Binance for Bitcoin, Ethereum Crypto Trading & Investing During Bear Market 2021 - 11th Jun 21
Gold Price $4000 – Insurance, A Hedge, An Investment - 11th Jun 21
What Drives Gold Prices? (Don't Say "the Fed!") - 11th Jun 21
Why You Need to Buy and Hold Gold Now - 11th Jun 21
Big Pharma Is Back! Biotech Skyrockets On Biogen’s New Alzheimer Drug Approval - 11th Jun 21
Top 5 AI Tech Stocks Trend Analysis, Buying Levels, Ratings and Valuations - 10th Jun 21
Gold’s Inflation Utility - 10th Jun 21
The Fuel Of The Future That’s 9 Times More Efficient Than Lithium - 10th Jun 21
Challenges facing the law industry in 2021 - 10th Jun 21
SELL USDT Tether Before Ponzi Scheme Implodes Triggering 90% Bitcoin CRASH in Cryptos Lehman Bros - 9th Jun 21
Stock Market Sentiment Speaks: Prepare For Volatility - 9th Jun 21
Gold Mining Stocks: Which Door Will Investors Choose? - 9th Jun 21
Fed ‘Taper’ Talk Is Back: Will a Tantrum Follow? - 9th Jun 21
Scientists Discover New Renewable Fuel 3 Times More Powerful Than Gasoline - 9th Jun 21
How do I Choose an Online Trading Broker? - 9th Jun 21
Fed’s Tools are Broken - 8th Jun 21
Stock Market Approaching an Intermediate peak! - 8th Jun 21
Could This Household Chemical Become The Superfuel Of The Future? - 8th Jun 21
The Return of Inflation. Can Gold Withstand the Dark Side? - 7th Jun 21
Why "Trouble is Brewing" for the U.S. Housing Market - 7th Jun 21
Stock Market Volatility Crash Course (VIX vs VVIX) – Learn How to Profit From Volatility - 7th Jun 21
Computer Vision Is Like Investing in the Internet in the ‘90s - 7th Jun 21
MAPLINS - Sheffield Down Memory Lane, Before the Shop Closed its Doors for the Last Time - 7th Jun 21
Wire Brush vs Block Paving Driveway Weeds - How Much Work, Nest Way to Kill Weeds? - 7th Jun 21
When Markets Get Scared and Reverse - 7th Jun 21
Is A New Superfuel About To Take Over Energy Markets? - 7th Jun 21
Why Tether USDT, Stable Scam Coins Could COLLAPSE the Crypto Markets - Black Swan 2021 - 6th Jun 21
Stock Market: 4 Tips for Investing in Gold - 6th Jun 21
Apple (AAPL) Summer Correction Stock Trend Analysis - 5th Jun 21
Stock Market Sentiment Speaks: I 'Believe' We Rally Into A June Swoon - 5th Jun 21
Stock Market Russell 2000 After Reaching A Trend Channel High Flags Out - 5th Jun 21
Money Is Cheap, Own Gold - 5th Jun 21
Bitcoin and Ravencoin Cryptos CRASH Bear Market Buying Levels Price Targets - 4th Jun 21
Scan Computers - How to Test New Systems CPU, GPU and Hard Drive Stability With Free Software - 4th Jun 21
Hedge Funds Getting Bullish on Gold - 4th Jun 21
THERE ARE NO SOLUTIONS When the Media is the VIRUS - 4th Jun 21
Investors Who Blindly Trust the ‘Experts’ Will Get Left Behind - 4th Jun 21
US Stock Market Indexes Consolidate Into Flagging Pattern – Watch For Aggressive Trending Soon - 4th Jun 21
Microsoft (MSFT) Stock Trend Analysis - 3rd Jun 21
No More Market Bloodbath – Beyond Cryptos - 3rd Jun 21
Bank run, or run from the banks? - 3rd Jun 21
This Chart Shows When Gold Stocks Will Explode - 3rd Jun 21
The Meaning Behind Gold’s Triple Top - 2nd Jun 21
Stock Market Breakout Or Breakdown – What Does The Next Big Trend Look Like? - 2nd Jun 21
Biden’s Alternate Inflation Universe - 2nd Jun 21
What You Should Know Before Buying Car Insurance - 2nd Jun 21
Amazon (AMZN) Stock Summer Prime Day Discount Sale - 1st Jun 21
Gold Investor's Survival Guide - 1st Jun 21
Silver and Copper to Benefit from Global Electrification Push - 1st Jun 21
Will Gold Shine Under Bidenomics? - 1st Jun 21
Stock Market Buy the Dip, Again?! - 1st Jun 21
Stock Market Consolidation Ahead - 1st Jun 21
Stock Market Summer Correction Review, Crypto CRASH, Bitcoin Bear Market Initial Targets - 31st May 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Ratcheting Up the Gold Friendly COT Tension

Commodities / Gold and Silver 2018 Oct 03, 2018 - 06:27 PM GMT

By: The_Gold_Report

Commodities

Precious metals expert Michael Ballanger discusses the most recent gold COT report and movements in the market. Once again the COT report from last Tuesday has revealed continued pressure on the already taut firing pins of the gold and silver markets with more shorts added by the Large Spec algobots and more longs/fewer shorts reported by the Commercials largely represented by the bullion banks. If it is the gold cartel that has capped rallies in the $1,350-1,375 range since August 2016, it is that same gold cartel that are actually positioned for a rally today and where the market is baffling everyone is the failure of the Crimex Criminals to launch the rally. The answer lies in the ascent of the machines in dictating direction in any and all markets. Whereas the algos have been focused on all things non-metal in recent years, they have taken to the gold and silver markets lately and are displaying phenomenal power and control in thwarting the intentions of the bullion bank cartel.


My new line of speculation has at its core the notion that the intervention "end-game" for the big players in the gold arena may involve developing an algorithm of their own to combat the power of the banks in controlling price. To be more specific, if the algos can take the market down and force capitulation amongst the bullion banks, who are now long gold for the first time since 2001, it would be somewhat of a pyrrhic victory of sorts. To achieve victory over the always-right bullion bank behemoths by taking price DOWN may be the ideal set-up for the inevitable rally that we all expect is long overdue. Perhaps in breaking the stranglehold of the Commercial Cretins on the downside, they will clear the path to $1,400-plus by way of burning the invisible hands of intervention and searing the memory of blistering financial pain in the same way that the cat avoids the stovetop in ancient folklore.

Before you all ask the point in the week where the locks came of the booze box and medicine chest, I must confess that self-medication and auto-sedative behaviors have reached the point of necessity in this logic-starved environment for precious metals investing. To wit, this has been a BRUTAL year for gold speculators and worse than 2015 in many respects despite prices being higher than that point in time.

Sure, the COT structure looks terrific as sentiment continues at extremes not seen since the late 1990s but what traders want to see is a trend that lasts longer than a few hours (or minutes) and that is something that has been largely non-existent for the better part of the year. Unlike 2016, when gold experienced a vicious reversal just below $1,050 based upon the whims of the Commercials, gold absolutely refuses to yield to them in this go-around and my position is that until I can see evidence that the have either won control or have capitulated, I remain sidelined in terms of the Gold Miner ETFs or further options or futures positioning.

The Novo Resources Corp. (NVO:TSX.V; NSRPF:OTCQX) story, which I wrote about at $7.00 a few months back, has now joined Garibaldi Resources Corp. (GGI:TSX.V) as the new "Scam of the Month" member as the Denver Gold Show presentation underwhelmed audiences, the bulk of whom were obviously NVO shareholder in need of some hand-holding. GGI was hit with a large dose of assay result reality after a really dubious series of delays and once the company reported results that were less than half as impressive in term of grade and even feebler in terms of width as the discovery hole that sent the shares to over $5 in 2017, the share price crashed, closing at $1.77 after getting slammed down to $1.34. Both of these issues have been heavily promoted by a number of very capable and conscientious newsletter writers and one very prominent gold-centric billionaire (during his weekly interviews) but no matter what the story, the new, much-younger wave of investing techno-geeks will have none if it and mercilessly trashed the two former explorco jewels of the Canadian mining scene. Such is the current landscape in the junior exploration world and rightly or wrongly so, it is the "new reality."

I think that the new investor generation is far more willing to gamble on eccentric geniuses like Elon Musk, whose Tesla Inc. (TSLA:NASDAQ) is looking more like a John DeLorean Story than a Henry Ford Story. These fuzzy-cheeked, high-IQ'd money managers will chase and pile on and overweight absurd stories like TSLA until they all collectively and simultaneously crash and burn and that's all "no problem" because they can all have a Facebook or Instagram party and cry together when it all comes blazing down.

You will note that I have purposely avoided the uranium-vanadium space thus far in this missive but with vanadium pentoxide hitting $22.90/lb in the past week, the last of the battery metals has now absolutely snatched investor interest from the headlocks held previously by cobalt, graphite and lithium. I have written three articles on Western Uranium & Vanadium Corp. (WUC:CSE; WSTRF:OTCQX) since August after I sent out an email in mid-June inviting everyone to join me in buying into the $0.68 per unit financing that is now ahead 266% since the August 9 closing. If you add the half-warrant at $1.15, the unit is up 460% and that is worthy of mention, especially since the last few gold and silver deals I have played have been unexciting at best.

With WUC now sporting an RSI above 70, a few of the followers have asked if it due for a correction but I would point to two earlier RSI spikes that happened in August at $1.60 and two weeks ago at $2.00, which resulted in the blast-off last week to the multi-year high at $2.77. What you have to remember is that we have an underlying commodity-price reversal after over 10 years of pain, particularly in uranium, which makes this the embryonic stages of the new bull market in uranium, and since China's lawmakers have forced new minimums for the hardness of steel in their construction business, China is now a net importer rather than exporter of vanadium pentoxide. To say that vanadium has now entered into a "tight market" is an understatement, which puts WUC's 35 million pounds located within the U.S. continental mainland into a new league.

The silver market had a good week versus as did the miners so I would hope gold and the entire complex will catch a bid shortly and as I have chortled animatedly for the last year, when it finally happens, silver and gold investors will finally be able to crawl out if their hiding places to replace the Tesla-dytes and offer them their warm and cuddly crawl spaces.

…just sayin'.

Originally trained during the inflationary 1970s, Michael Ballanger is a graduate of Saint Louis University where he earned a Bachelor of Science in finance and a Bachelor of Art in marketing before completing post-graduate work at the Wharton School of Finance. With more than 30 years of experience as a junior mining and exploration specialist, as well as a solid background in corporate finance, Ballanger's adherence to the concept of "Hard Assets" allows him to focus the practice on selecting opportunities in the global resource sector with emphasis on the precious metals exploration and development sector. Ballanger takes great pleasure in visiting mineral properties around the globe in the never-ending hunt for early-stage opportunities.

Disclosure: 1) Michael J. Ballanger: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Western Uranium Corp. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None. My company has a financial relationship with the following companies referred to in this article: Bonaventure Explorations Limited is owned by me and my wife and has earned consulting fees from Western Uranium in the past. I determined which companies would be included in this article based on my research and understanding of the sector. Additional disclosures are below. 2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with Western Uranium. Please click here for more information. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. 3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy. 4) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports. 5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Western Uranium Corp. and Tesla Inc., companies mentioned in this article.

Charts courtesy of Michael Ballanger.

Michael Ballanger Disclaimer: This letter makes no guarantee or warranty on the accuracy or completeness of the data provided. Nothing contained herein is intended or shall be deemed to be investment advice, implied or otherwise. This letter represents my views and replicates trades that I am making but nothing more than that. Always consult your registered advisor to assist you with your investments. I accept no liability for any loss arising from the use of the data contained on this letter. Options and junior mining stocks contain a high level of risk that may result in the loss of part or all invested capital and therefore are suitable for experienced and professional investors and traders only. One should be familiar with the risks involved in junior mining and options trading and we recommend consulting a financial adviser if you feel you do not understand the risks involved.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in