Bill Cara’s Blog for Aug 15, 2012

CTA Trading Desk Morning Report

[7:00am ET] Good morning.

I was saddened to hear of the passing of mining legend Don McKinnon, a friend I have introduced to many of you in these pages and in person.

http://www.timminstimes.com/ArticleDisplay.aspx?e=3599635

The article in The Timmins Times tells his story well, but Michael Barnes who published a paperback in 2006, entitled The Scholarly Prospector – Don McKinnon, described it much more fully with photos. A few of you have an autographed copy of that book.

As you know I was in his son’s office about a month ago and on the phone since. At PDAC in March I met Don and spent quite a bit of time with the family, Don, Stephanie, Gordon and Alexa, as I do every year. Another daughter Donna is a former employee of mine.

I’ve flown in Don’s Beaver floatplane and with him in other planes to mines from Quebec to Colorado. Twenty-five years ago, I financed and took his company public on the Toronto Stock Exchange. I invested in his Canadian Orebodies, a fairly new company which his son Gordon runs. Many years ago, Don bought my old Rolls Royce and gave it to Gordon for use at Western University, telling me “I wouldn’t drive that pimpmobile”.

He saw life that way, with humour, always. He needed it, I figured, because he saw life as a struggle, which could be beaten with hard work. His persistence was renowned.

Don had a million stories that spoke volumes about the man who persevered amid hardship in the bush, always studying in-depth his prey, but succeeding at finding mines like few in history from the Kidd Creek copper mine that a good friend now manages for Xstrata to the three great gold mines at Hemlo, in Northern Ontario.

The one time in my life I thought I was about to die was when we rolled Don’s large eight-seater Caravan totally over in the air as we approached the landing in a farmer’s field they call an airport near Highwater Quebec. We had just cleared the mountain top close to the Jay Peak Resort in Vermont in a severe windshear when the chaos ensued. I’ve never forgotten it.

One of you recently wrote in these pages to thank me for the education he received around the coffee table at PDAC a couple years ago, with Don McKinnon and Rob McEwen together. It’s ironic then that I’m having lunch with Rob today.

Life goes on, but I will definitely miss Don McKinnon. He would be 83 on Saturday.


Good morning, Geoff here.

In recent posts, Bill and I have both noted the “risk-on” strength in the stock market through ratio charts that point towards future strength.

We have also noted the complacency that has accompanied this rally.

As you know, we have been focused on being long stocks for a few months now, so our posture is long with gains. As such, we have to note the road signs pointing towards risk that we may want to avoid. The road signs are definitely mixed at this time.

One of the warning signs is the Volatility Index, $VIX. Here is a 5 year chart of the $VIX compared to the S&P 500. I have noted periods when the $VIX was very low and how MOST of those periods were followed by a decline in the S&P 500 – but not all of them and not right away.

ggimage01_081512.png

This chart shows the same thing:

ggimage02_081512.png

However, Sentimentrader.com is not showing extreme optimism in the stock market that often accompanies tops, so the market can continue to lift higher.

ggimage03_081512.png

It is difficult to ignore the warning signs, but the market continues a low volume levitation act with data pointing to a slowing global economy. Weeks ago, we were saying that QE had to come while most TV pundits were saying that no QE was in the future. It appears that traders have now shifted to our side of the argument as they don’t want to miss out on a liquidity induced rally.

Let’s face it – liquidity lifts all boats, but eventually there are no more buyers and the boats lose buoyancy – the question is; when will that happen?

Have a great trading day!


Here are the 7:00am ET snapshots of the latest equity market trading results for Europe, and futures prices plus 5-minute charts of the futures for S&P 500, 30-year US Treasury Bond, US Dollar index, Gold and Crude Oil.

Symbol Name Last Trade Change Related Info
^ATX ATX 2,055.10 Aug 14 Up 3.89 (0.19%) Components, Chart, More
^BFX BEL-20 2,346.30 Aug 14 Up 11.60 (0.50%) Components, Chart, More
^FCHI CAC 40 3,440.51 6:59AM EDT Down 9.76 (0.28%) Components, Chart, More
^GDAXI DAX 6,940.98 6:45AM EDT Down 33.41 (0.48%) Components, Chart, More
AEX.AS AEX General 332.10 6:45AM EDT Down 0.79 (0.24%) Components, Chart, More
^OSEAX OSE All Share 485.44 6:44AM EDT Up 0.55 (0.11%) Components, Chart, More
^OMXSPI Stockholm General 330.73 6:44AM EDT Down 1.97 (0.59%) Components, Chart, More
^SSMI Swiss Market 6,520.01 6:45AM EDT Up 14.03 (0.22%) Components, Chart, More
^FTSE FTSE 100 5,836.23 6:45AM EDT Down 28.55 (0.49%) Components, Chart, More
FPXAA.PR PX Index 929.90 6:59AM EDT Down 0.70 (0.08%) Chart, More
MICEXINDEXCF.ME MICEX Index 1,437.99 6:45AM EDT Down 23.66 (1.62%) Chart, More
GD.AT Athex Composite Share Price Index 621.77 Aug 14 Down 1.45 (0.23%) Chart, More

http://finviz.com/futures.ashx

http://finviz.com/fut_chart.ashx?p=m5&t=ES

http://finviz.com/fut_chart.ashx?p=m5&t=ZB

http://finviz.com/fut_chart.ashx?p=m5&t=DX

http://finviz.com/fut_chart.ashx?p=m5&t=GC

http://finviz.com/fut_chart.ashx?p=m5&t=SI

http://finviz.com/fut_chart.ashx?p=m5&t=CL

The team will check in during the day, reporting in the Discourse when there is a new entry.

Enjoy your day.


Cara 100 Company research notes from brokers


Vad’s Catch of the Day


Kaimu’s Sound Money


Deron’s Daily ETF Analysis

Despite yesterday’s distribution (decline on higher volume) in the Nasdaq Composite Index ($COMPQ), it is positive to note that the large-cap bretheren of that tech-heavy index, the Nasdaq 100 Index ($NDX), still managed to close above the prior resistance (new support) of its week-long consolidation pattern. This is shown below on the 60-minute (hourly) chart of PowerShares QQQ Trust ($QQQ), a popular ETF proxy for the Nasdaq 100 Index:

$QQQ chart pattern

Going into today’s session, we will be keeping a close eye on whether or not $QQQ manages to hold support of yesterday’s intraday low. If it does, a low-risk swing trading buy entry could be made, with a tight stop just below yesterday’s low. This would provide a positive reward-risk ratio for the setup, as a tight stop could be utilized, with substantial upside IF yesterday’s breakout attempt holds. Note that any such buy entry would be momentum-based and short-term in nature. Conversely, if $QQQ falls below yesterday’s low, we would not be surprised to see a swift return back down to test the lows of the recent sideways trading range of the past week.

The commentary above is an excerpt from The Wagner Daily, our nightly ETF and stock trading newsletter. Subscribers to the full version receive our exact entry and exit prices for swing trading our top ETF and stock picks, access to our market timing system, and technical trading commentary. Signup for your 30-day risk-free membership by clicking here.


OptionOracle


Harp’s Roadmap


Cara on the Metalminers


Cara on the International Markets


CTA Trading Desk Mid-Day Report


CTA Trading Desk Post-Close Report


  1. 7:00 AM ET MBA Purchase Applications 8:30 AM ET Consumer... [#111997]
    By: davefairtex (5215 comments) Go to top ↑
    • 7:00 AM ET MBA Purchase Applications
    • 8:30 AM ET Consumer Price Index
    • 8:30 AM ET Empire State Mfg Survey
    • 9:00 AM ET Treasury International Capital
    • 9:15 AM ET Industrial Production
    • 10:00 AM ET Housing Market Index
    • 10:30 AM ET EIA Petroleum Status Report
  2. 1 in Accumulation Zone 1 in Buy alert 2 in Distribution... [#111998]
    By: davefairtex (5215 comments) Go to top ↑
    • 1 in Accumulation Zone
    • 1 in Buy alert
    • 2 in Distribution Zone
    • 3 in Sell alert

    Accumulation Zone (3%): Monthly 5, Weekly 2, Daily 2
    Distribution Zone (13%): Monthly 15, Weekly 13, Daily 13

  3. http://www.minyanville.com/business-news/markets/a... just... [#112001]
    By: Ron Sen (975 comments) Go to top ↑

    http://www.minyanville.com/business-news/markets/a

    just one of a myriad of tools (Bollinger Bands, volatility bands, DeMark Range projections, old fashioned support and resistance) that occasionally provide clarity. Vad’s book is quite good on his methodology as well…

    RSI4 <=10 on the 60 minute charts is another good one.

  4. http://finance.yahoo.com/news/senesco-announces-sn... [#112002]
    By: baz22 (2875 comments) Go to top ↑

    http://finance.yahoo.com/news/senesco-announces-sn……… to take a Risk, to get in at the very beginning ?

    • Baz, did you comment recently that some of the smaller... [#112003]
      By: Ynot (234 comments) Go to top ↑

      Baz, did you comment recently that some of the smaller players in the stem cell field are moving offshore due to heavy-handedness from FDA (and/or some Big Pharma interests putting pressure on FDA to act that way)?

      (I checked some of your previous posts, but couldn’t find any comments)

      • Good morning, Ynot... No, have not mentioned any moving... [#112005]
        By: baz22 (2875 comments) Go to top ↑

        Good morning, Ynot… No, have not mentioned any moving offshore, but many trials have been conducted out of country in past decade ( re: ASTM in Spain – dental – mid 2000′s ).. PSTI is an example of out of country, but will still have to deal with FDA for product release in US ( and they are doing so )… noticed CUR is having to issue more shares today… It is Most Important to wait for a good, long base to develop in these companies, Unless an ‘ event ‘ is close at hand. Take care…

    • You either grab the opportunity or you don't. Thanks... [#112009]
      By: 4ever (612 comments) Go to top ↑

      You either grab the opportunity or you don’t. Thanks again.

  5. Watching PCLN - it's been trading at a new support... [#112004]
    By: ea32da32 (2362 comments) Go to top ↑

    Watching PCLN – it’s been trading at a new support, consolidating here so I’m looking to pick up a few OTM sept calls since a pop can can do well – but will watch for a double bottom in the next few weeks -

    IBM, setting up the 3rd bull flag at June resistance; looking at maybe at the money calls, or slightly out since it’s hard to tell how SPX is going to react short term.

    FCX – I have a few puts on this from Monday – looking for it to hit my short term goal retrace to the 38.2fib – and exit aroun $34.30

    BHP – Took a few puts Monday – it’s setting up the 2nd bull flag (possable) and looking to exit them at the 23.6fib ~ $68.02 – if it gets a good bounce off this I might buy some calls??? OIL (GS idx) is working 3rd bull flag…

    Lots of positives looking charts, some not so, overall volume in the tank – hard to see how wall street can make money at these low volume levels.

    good luck all.

    Earl

  6. ... [#112006]
    By: Bull Hunter (3552 comments) Go to top ↑
  7. Refer to yesterday's post: Some pretty heavy hitters for a... [#112008]
    By: 4ever (612 comments) Go to top ↑

    Refer to yesterday’s post:

    Some pretty heavy hitters for a ‘ penny stock ‘….
    Submitted by baz22 (2566 comments) on Tue, 08/14/2012 – 10:29 #111965
    http://www.senesco.com/board.htm

    **********************************************************************

    I’m interested, even though penny stocks are outside my comfort zone. Thanks baz22.

    Battling cancer; enhancing agri products.
    Senescence & apoptosis – google it.

    John E. Thompson, Ph.D.

    Dr. Thompson is the inventor of the technology that is being developed by the Company. July 1990 to June 2001 he was the Dean of Science at the University of Waterloo in Waterloo, Ontario, Canada. Dr. Thompson has a Ph.D. in Biology from the University of Alberta, Edmonton, and he is a Fellow of the Royal Society of Canada. Dr. Thompson is also the recipient of a Lady Davis Visiting Fellowship, the Sigma Xi Award for Excellence in Research, the CSPP Gold Medal and the Technion Visiting Fellowship

  8. Perhaps the biggest overhang was/is the warrant... [#112010]
    By: baz22 (2875 comments) Go to top ↑

    Perhaps the biggest overhang was/is the warrant conversions.. lot to absorb, but the data from phase I that folk were waiting on is now out for all to review… as with all bio’s in this position, it will be a long haul. Wish I could sense the ‘ lows ‘, but that is part of the drama. Good luck.

  9. why are the 10-yr rates backing up? Better... [#112011]
    By: Tbolt (169 comments) Go to top ↑

    why are the 10-yr rates backing up? Better economy?

    • ... [#112013]
      By: Grym (5469 comments) Go to top ↑
    • Huge swing upward, its now less than 10 basis points away... [#112016]
      By: Ynot (234 comments) Go to top ↑

      Huge swing upward, its now less than 10 basis points away from 200 dma of 1.87% (passed the 50 dma of 1.57% early last week).

      Current yield of 1.78% is interesting level – first fibonacci retracement off 1.39% low from 2.4% intermediate high.

      Is the ‘worm turning’ in the bond market?

      (To follow current 10 year yield, I use $TNX as the symbol on stockcharts)

      • Ynot - my .TNX alert just crossed 18.05 which I set months... [#112020]
        By: ea32da32 (2362 comments) Go to top ↑

        Ynot – my .TNX alert just crossed 18.05 which I set months ago with the thought to go long TBT – I’ll probably wait until TLT drops below the 200dma 120.4 there about.

        Earl

        • I think we're on the same page, Earl. I'm waiting for a... [#112022]
          By: Ynot (234 comments) Go to top ↑

          I think we’re on the same page, Earl.

          I’m waiting for a relief rally myself, should it materialize. Fundamentals don’t support this type of run up on yields (but then again, who knows what those fundamentals are – we are in an presidential election year, aren’t we?).

          Have a look at the $TNX weekly chart over 3 year time frame – the 2.4% level looms large – its the intermediate high. Potential neckline of an H & S reversal long term?

          • Rick Santelli just said he can see 1.9 to 2.0 and calling... [#112025]
            By: ea32da32 (2362 comments) Go to top ↑

            Rick Santelli just said he can see 1.9 to 2.0 and calling this a bond buying opportunity. Long term on $TNX – no idea what Ben has in mind… he/they/it own this market… I just picked up some sept TLT 123 calls for $1.72 – just for a trade, will see how it responds into the close today if I hold overnight.

          • Interesting, 1.905% just happens to be the 50 dma on the... [#112028]
            By: Ynot (234 comments) Go to top ↑

            Interesting, 1.905% just happens to be the 50 dma on the weekly chart as well as a major line of resistance going back to 1Q 2011 AND 50% fibonacci retracement.

            I’m going to wait it out (hope?) till we get to that level – I’m doing a little bit of yield chasing for a couple of portfolios.

            FVX (5 year yield) and TYX (30 year yield) are acting in concert, of course, so its ‘pick your poison’, I guess…

          • Ynot, Earl, "I think we're on the same page," Ditto... [#112029]
            By: Grym (5469 comments) Go to top ↑

            Ynot, Earl,

            “I think we’re on the same page,”

            Ditto here.

            I’m a longer term, slower moving swing trader who still sees safety in USTs. Stocks have been moving with high volatility on v. low volume for a long time.

            Global economy is not looking good, I believe the US still has the edge for safety.

            Other than bonds I have my eye on GLD as a possible.

            Watching S2 on this chart.

            Grym

          • Hi Grym, (Watching S2 on this chart) exactly, me... [#112031]
            By: ea32da32 (2362 comments) Go to top ↑

            Hi Grym,
            (Watching S2 on this chart) exactly, me too!

            Earl

          • slip of the... [#112032]
            By: ea32da32 (2362 comments) Go to top ↑

            slip of the finger.

  10. EXC - numbers lowered at Jefferies. Shares of EXC now seen... [#112012]
    By: Bull Hunter (3552 comments) Go to top ↑

    EXC – numbers lowered at Jefferies. Shares of EXC now seen reaching $42. Estimates also lowered on depressed prices for the foreseeable future. Buy rating.

  11. I don't know if this is all too funny or all too... [#112014]
    By: Ynot (234 comments) Go to top ↑

    I don’t know if this is all too funny or all too sad…

    http://www.ibtimes.co.uk/articles/373867/20120815/

    But, unfortunately (in many respects), its all too real.

    (I had to search some other news sites to see if this was true – looks like it is)

  12. Anyone care to guess where this baby is... [#112017]
    By: ea32da32 (2362 comments) Go to top ↑

    Anyone care to guess where this baby is headed?

    thanks,
    Earl

  13. Picked up some PCLN sept $625 calls for $3.00 - looking for... [#112018]
    By: ea32da32 (2362 comments) Go to top ↑

    Picked up some PCLN sept $625 calls for $3.00 – looking for resistance at $582 right at the open of gap 08/08/12.

    Earl

  14. Beautiful setup, read and played almost to perfection... [#112019]
    By: Vadym Graifer (4341 comments) Go to top ↑

    Beautiful setup, read and played almost to perfection (except somewhat too early exit but still, 1:3)

    http://tradinglog.realitytrader.com/2012/08/aug-15

    • Vad, you still milking the... [#112037]
      By: westcoaster (1130 comments) Go to top ↑

      Vad, you still milking the cat!

      • LOL... not a small feat to milk anything in this: NYSE... [#112038]
        By: Vadym Graifer (4341 comments) Go to top ↑

        LOL… not a small feat to milk anything in this: NYSE volume 330M shares, about 36% below its three-month average. But we adjusted nicely, squeezing some coin on daily basis

  15. For those imagining that Spain and Italy are still at... [#112021]
    By: davefairtex (5215 comments) Go to top ↑

    For those imagining that Spain and Italy are still at death’s door, the Italian 10 year bond yields have just notched their third lower low (and lower high), off perhaps 100 basis points from the recent high of 6.80 set 3 weeks ago in late July.

    Same for Spanish 10 year yields – they are down more than 100 basis points from their high of 7.75 of late July, but the chart isn’t quite as positive; they seem to be hovering right around resistance at 6.60.

    Yet I still see Mish posting stories about eurozone exits; who will exit first, Italy or Germany? And comparing Greece with Italy!

    While those news stories are interesting, I’m watching the money too. I remember how during the 2009 bounce the news flow still remained horrible even while the market was bouncing like crazy. So which do you follow?

    Some other interesting phenomena. Check out Santander Bank vs DB. Given the horrid news from Spain, one might reasonably expect Spanish banks to be doing worse than German banks. But check out the chart.

    http://stockcharts.com/h-sc/ui?s=SAN:DB&p=D&b=5&g=

    Ok, just so you know I’m not signaling “ALL CLEAR” in the eurozone. However, I do find it curious when the data and the news flow don’t match up.

  16. "There is a popular joke in Brussels that if the European... [#112023]
    By: Vadym Graifer (4341 comments) Go to top ↑

    “There is a popular joke in Brussels that if the European Union were a country applying to join itself, it would be rejected on the grounds of being undemocratic.”

    Quite eloquent description of how things are done in EU

    http://goo.gl/luqA6

    • Great article. The centralized bureaucracy that writes... [#112024]
      By: davefairtex (5215 comments) Go to top ↑

      Great article. The centralized bureaucracy that writes regulations is a one stop shop for big companies seeking to run smaller competitors out of business. So on the one had you get the benefit of the Germans running the monetary system, but on the other, you get overweening bureaucracy awarding favors to big business in exchange for support for the whole project.

      And not even a hint of democracy.

      The anti-democratic business I’ve seen for sure. The business-controlled regulation writing I hadn’t.

  17. I look at various things and I am very leery about a short... [#112027]
    By: 14them34me (295 comments) Go to top ↑

    I look at various things and I am very leery about a short term market top here…..
    TLT = very much oversold and due for a rebound (good for TLT, but not good for stocks)
    VIX = as noted by Geoff (not good)
    Consensus Index Bullish Sentiment = 63% (not good)
    AAII Index Bullish = 36.5% (neutral)
    Market Vane Bullish = 63% (not good)
    Total CBOE put/call ratio (5 days avg) = 0.85 (not good)
    These are numbers that are not conducive to a start of a run up market.

  18. $12 Billion Fund Sells Cisco, Buys Apple Jim... [#112030]
    By: ea32da32 (2362 comments) Go to top ↑

    $12 Billion Fund Sells Cisco, Buys Apple
    Jim Cramer?@jimcramer

    Is Cisco Crisco? http://www.go-tst.com/cZBJC

    Pete Najarian just said buy buy buy – everyone talking book.

    LOL;-)

    Earl

  19. up 5.6% nice move today - so far;-) 7 days of casual... [#112033]
    By: ea32da32 (2362 comments) Go to top ↑

    up 5.6% nice move today – so far;-) 7 days of casual accumulation.

    • You should be able to make me a loan by now.... nice Chevy... [#112034]
      By: baz22 (2875 comments) Go to top ↑

      You should be able to make me a loan by now…. nice Chevy Silverado 4×4 I’ve been eyeing .. !!!!

      • LOL - what color? A friend just sent this to me - it's... [#112039]
        By: ea32da32 (2362 comments) Go to top ↑

        LOL – what color?

        A friend just sent this to me – it’s about 30 minutes from the house so Dawn and I are going to make a trip there very soon. I remamber the street well, used to go to the Cinema there when I was young http://www.youtube.com/watch_popup?v=lRGWUFEeXZw&v

        • My gosh, what an honor to all those troops... 500 ? I did... [#112050]
          By: baz22 (2875 comments) Go to top ↑

          My gosh, what an honor to all those troops… 500 ? I did not know Texas lost that many soldiers.. That is almost 10% of all casualties, isn’t it ? Bless them all…

  20. One positive take from the FDA classification as ( adult ... [#112035]
    By: baz22 (2875 comments) Go to top ↑

    One positive take from the FDA classification as ( adult ) stem cell therapy as a ‘ drug ‘ is the fact of the companies now working under the FDA protocol. ASTM is in an excellent position in this regard, as they have been working very closely with the FDA thru their entire ‘ CLI ‘ trials, which, as you know, are in phase III… still at least a year out, so all depends on your time frame. take care

    • Baz, do you know of any industry-wide anlayst's reports... [#112042]
      By: Ynot (234 comments) Go to top ↑

      Baz, do you know of any industry-wide anlayst’s reports that comment on the stem cell sector? The FDA’s action as outlined in that WSJ article have got me on edge somewhat. The FDA seems to have acted a little ‘too’ diligently, and the Tammy Bruce blog links to a law firm’s blog in DC that seems to agree.

  21. had to use the zoom on my computer to see if anyone was... [#112036]
    By: ea32da32 (2362 comments) Go to top ↑

    had to use the zoom on my computer to see if anyone was trading this.

  22. If so, listen to Greg Allman tell their... [#112040]
    By: jock (1011 comments) Go to top ↑

    If so, listen to Greg Allman tell their story:

    http://www.pbs.org/newshour/bb/entertainment/july-

    best white-boy southern blues band EVER. Here are some signature tunes of theirs:

    http://www.youtube.com/watch?v=Sp1nyDF9Wak

    http://www.youtube.com/watch?v=GHY4l-YgEtE&feature

    http://www.youtube.com/watch?v=1x28jaeyX2s

    Just drove through Georgia thinking of how I wish I had had their live CD along. Lo and behold, Greg appears next day on the News Hour, telling his tale and promoting his new book. Hope some of you enjoy this.

    • Got to see them twice ( 1968 - 69 )... once, at ' old '... [#112048]
      By: baz22 (2875 comments) Go to top ↑

      Got to see them twice ( 1968 – 69 )… once, at ‘ old ‘ Charlotte ( NC ) coliseum ( but Duane was sick and didn’t play ), and then at UNCC, and Duane was in high spirits. Man !! What a trip when the ‘ Brothers’ ‘ were playing ( in Georgia, maybe Florida – can’t remember- from Greg’s interview at that time )and they looked down from the stage, and there sat Eric Clapton swaying with the music with eyes closed .. !! A few days later, Duane was invited to Clapton’s studio, and ‘ Layla and other Love Songs ‘ was recorded.. what times those were… Thanks for the memories.

  23. Bill, How do it go and is there anything worthwhile to... [#112043]
    By: c2ski (94 comments) Go to top ↑

    Bill,

    How do it go and is there anything worthwhile to report back?

    • c2ski, Well, lunch was interesting, I took two pages of... [#112047]
      By: Bill Cara (4105 comments) Go to top ↑

      c2ski,

      Well, lunch was interesting, I took two pages of notes. I don’t think I want to add anything here other than to say that Rob plans to be at the Cara Community Conference in late September, and spend enough time with the attendees to get to know them and vice versa.

      The little I can share: The recently announced $50 million financing is being done with a rights offering that is being registered in both the US and Canada, which will be done only after a feasibility study is finished and reported. The timing is this Fall. He will take down his pro rata 25% share (equal to his shareholding), but he also will back-stop the whole issue, meaning he will buy 100% of it personally if (ha!) there was no interest.

      The financing he says was needed because the company had a five-month delay in repatriating funds from Argentina after the govt there came down with a ridiculous requirement to pay within 15 days on shipments of material sent to refiners outside the country when the company itself would not get paid for many months. After appeal, they now have 45 days on some of the material and 180 days on the rest, which he says is ok. But no shipments were made for five months during the appeal process, which screwed up his budget.

      As to the lawsuit on 50% of one of their Argentine properties, they intend to spend $15 million for drilling starting in November on the uncontested 50% of the property. The law suit will start around November but a decision is not expected for many months after that. He didn’t seem concerned.

      He also believes that, because of the rights offering, the shorts in the stock would have to put up lots of funds, and so there will be a squeeze when they buy back their positions instead. So between that and the feasibility study he thinks the price is going higher.

      The Argentine matter caused some material changes in plans but otherwise this company is on track I believe. Right now the company is producing 60:40 silver to gold, but after Mexico comes on-stream — El Gallo’s first metals pour will be in three weeks — then they figure it will be about 50:50.

      The hand-out material, which was more extensive than I’ve received in the past, is probably on the company website, although I have not looked.

  24. The world's best and biggest parking lot for the trillions... [#112045]
    By: MoKat (531 comments) Go to top ↑

    The world’s best and biggest parking lot for the trillions sloshing around the world is still the USTreasury market. Some invetors may be moving back into the Euro or Swiss Franc or other currencies after a brief stay with the dollar. It’s hard to call the bond market ‘a market’ as it is totally manipulated by the FED and their cohorts under current circimstances. Until the day of reckoning it will probably stay as such. With all goings on in western economies, it seems quite risky to bet on interest rates.

    The Treasury International Capital report showed a big slowdown yesterday….

    “Foreigners eased back on their buying of U.S. financial assets with net inflow of long-term securities rising only $9.3 billion in June from $55B the previous month for the weakest reading since October last year. Foreigners continued to buy Treasuries but all other classifications show declines including corporate bonds and equities.US residents were small net sellers of foreign securities in the month. Foreign investment in US financial assets is an important offset to the government’s roughly $100 billion monthly deficit and the economy’s roughly $50 billion per month trade deficit.? WSJ

    • Today's outflow from 10 year bonds was not just a US... [#112053]
      By: davefairtex (5215 comments) Go to top ↑

      Today’s outflow from 10 year bonds was not just a US phenomenon. All of the safe havens experienced outflow, even Switzerland. German 10 year yields moved 18 basis points in 2 days. And their debt market is pretty big – almost $3 trillion, larger than Italy.

      In turn, PIGS bonds experienced a drop in yield. The equity markets didn’t rise – the money went somewhere, but I’m not sure it was just targeted at the PIGS.

      Just short covering? Beats me. Let’s see what happens when yields reach the 200 MA. I’m not feeling this is “risk on” because the risk assets don’t seem to be getting the love.