It’s a quiet day in the markets so far to begin the new week…Gold has traded in a range between $1,576 and $1,585…as of 7:00 am Pacific, bullion is relatively unchanged at $1,580…Silver is down 13 cents to $28.87 (see updated Silver charts below)…Copper is off 2 pennies to $3.49…Crude Oil is down 64 cents at $91.31 while the U.S. Dollar Index is unchanged at 82.82…
Today’s Equity Markets
Asian markets were mixed overnight, but a weak yen drove Japan’s Nikkei average to a new multi-year high…the Nikkei is up nearly 20% so far in 2013…Japanese core machinery orders fell 13.1% in January from the previous month, the government said today, the first decline in four months, as Japan’s economic recovery has yet to gain momentum…this will certainly encourage more aggressive monetary easing in that country…European shares are under mild pressure as investors reacted to Italy’s credit rating downgrade…ratings agency Fitch reduced Italy’s credit rating to BBB plus on Friday, citing political uncertainty as the key reason for the downgrade…Fitch stated, “The inconclusive results of the Italian parliamentary elections on February 24-25 make it unlikely that a stable new government can be formed in the next few weeks”…it added that the political situation was a “non-conducive backdrop” for further structural reform measures…Beppe Grillo, the comedian and leader of the “5 Star Movement”, which emerged as the surprise winner in the elections, reiterated that his party would not form an alliance with his opponents…in North America, the Dow is flat in early trading while the Venture Exchange has slipped 2 points to 1116…
Inflation Picks Up In China
A slew of economic data came out of China over the weekend including an uptick in inflation to 3.2% year-on-year in February, up from 2% in January for the highest increase since April last year…this is undoubtedly a concern for Chinese officials but prices may have been distorted by the Lunar New Year holiday which often sees a spike in prices for food and other goods, so the March data will become quite important…industrial production grew slightly more slowly with a 9.9% year-on-year rise in January and February, after a 10.3% gain in December…other indicators of economic activity softened in the first two months of the year…retail sales were up 12.3% year on year in January and February, compared with a 15.2% year on year rise in December…electricity output, which is closely watched in China because of concerns about the quality of other data, was up 3.4% year-on-year in the same period, compared with growth of between 6% and 8% in the final months of last year…
Updated Dow Chart – Overbought Conditions
After 10 consecutive weekly gains, there’s no question the Dow is in overbought territory from a short-term technical standpoint…below is a 9-month daily chart from John that shows RSI(2) after Friday was at an extreme 99.32…the extent of a near-term pullback is the only question…astute investors will be locking in first quarter gains as March progresses…
Silver Looking Stronger – Updated Charts
As usual, John has updated short-term and long-term Silver charts this morning with both of them providing encouragement…
Silver – Short-Term Chart
Silver – Long-Term Chart
TomaGold Corp. (LOT, TSX-V) Updated Chart
TomaGold Corp. (LOT, TSX-V) and Real Quinto Capital Corp. (QIT, TSX-V), which released more results from their Monster Lake discovery Friday, are both experiencing minor pullbacks this morning which is not surprising given the extent of their recent run-ups…Monster Lake is a legitimate play that will be interesting to see unfold in the coming weeks…both stocks can be expected to be volatile, so they are certainly not for the faint of heart…substantial gains from current levels are possible if additional drilling extends mineralization laterally and at depth with good grades…below is a 3-month daily LOT chart from John showing technical support levels…some consolidation at this point is normal…as of 7:00 am Pacific, LOT is down 1.5 cents at 31 cents…
Trueclaim Exploration (TRM, TSX-V) Updated Chart
Note: John holds a share position in TRM.
Gcu one of the best deals going today,5 mil oz deposit in Canada
Comment by robert — March 11, 2013 @ 9:18 am
TRM LOOKS INTERESTING JOHN!
Comment by STEVEN — March 11, 2013 @ 4:21 pm
Hi John/Jon and BMR team.
RBW recently announced intentions of doing a financing at 10 cents to raise $1MM. Out of curiosity, if the stock is trading below the intended levels, does it mean that they won’t be able to actually complete the transaction until the stock hits the $0.10? I’m not sure how this works and thought I’d ask.
This stock looks like it’s been completely wasted into the trenches. Any thoughts on RBW now or are you just taking too much heat from these boards when you mention the company so as to not say anything at this point in time?
Thank you in advance.
Comment by Tim — March 11, 2013 @ 6:01 pm
Same question as Tim.
Comment by Stephan — March 11, 2013 @ 7:03 pm
@ Tim
Try buying 10M shares in the open market without raising the SP.
Comment by Tom — March 12, 2013 @ 2:09 am
It’s a rough overall market right now, but as Rick Rule stated so emphatically at the Resource Show in Vancouver—-now is the best time to be participating in many of these financings especially when a full warrant is involved as is the case with Rainbow. I’ve always found it strange that some investors will base their decision on whether to participate in a financing simply on the current price of the stock, whether it’s a few pennies above or below the PP price. You can’t trade that stock for four months anyway. Personally, I’d have no problem paying a slight premium to the price in order to get the full warrant. Alliance Mining (ALM) a couple weeks ago completed a $300,000 PP at 10 cents with the stock trading below that. Plenty of examples of PP’s closing at a slight premium to the share price, especially with a full warrant involved. When investing, always stay focused on the fundamentals of the company and don’t just look at the company through the prism of the market because that’s just following the crowd. RBW has advanced its properties tremendously over the past 12 months and as such it’s a better investment now than it was 12 months ago IMHO, especially at this lower price. The overall market will recover in due course.
Comment by Jon - BMR — March 12, 2013 @ 3:46 am