Are we seeing a short relief rally predicted for Friday’s market overreaction?
I think most Funds have up to 10 days to rebalance specific stocks in their Funds that suffered from such a smash-down. Is it shorter for ETFs like the 3 day rule? There’s also a problem with stocks that have been borrowed from a margin account that need to be replaced back into the brokerage account. Expect volatility to persist that will be largely news driven. If you sell ETFs, the individual stocks within that ETF will be sold pro rata.
By request, a new topic has been created for discussion of global health issues affecting the markets. Prior comments that deal primarily with that have been moved to the new topic.
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For anyone not keeping up with news releases on Novo Resources Corp. (TSX-V: NVO; OTCQX: NSRPF) from yesterday, March 02, 2020 (GLOBE NEWSWIRE):
Novo Agrees to Acquire Significant Stake in New Found Gold Corp.
… New Found is focused on exploring its wholly-owned Queensway project (the “ Queensway Project ”) located near the town of Gander, Central Newfoundland. The first hole from its late 2019 drill program (NFGC-19-01) on the Queensway Project intersected 92.86 g/t Au over 19.0 metres including 285.2 g/t Au over 6.0 metres . This intercept is near surface, starting at 96 m down hole depth. The true width of this intercept is estimated to be 70% based on drill core angles and correlation with historic drilling. The information in this paragraph and the next has been provided to Novo by New Found and has not been verified by Novo.
https://www.novoresources.com/news-media/news/display/index.php?content_id=381
This acquisition diluted NOVO by approximately 7M shares for a 17% stake in New Found.
New found will own approximately 3.7% of NOVO.
Don’t know how that deal makes sense for NOVO. Seems like they should concentrate on their Australia projects unless they really don’t think they are viable?!
Words of encouragement for the junior miners and exploration stocks. This paragraph comes from Gold-Eagle:
The myth is that the stocks lead the metals. But this is not true for periods when longer-term sustainable moves occur. Gold leads, typically followed by the larger cap miners, followed by silver. Bringing up the rear are the risky juniors, which can provide huge returns in a short period of time. Currently the mining stocks – and especially the micro-cap junior exploration “venture capital” stocks – are extraordinarily undervalued in relation to the prices of gold and silver.
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WOW - No one posting today!
Shell shocked for sure.
High frequency trading partially to blame for the extreme volatility? I’d put part of the blame on ETFs for sure, also. Options are another matter. Yes, Covid19 is a catalyst for many things, including the stock market.
Just wanted to mention that the GDXJ rebalances on March 20 with a few new tickers to be added. The GDXJ had a low today of 19.79, high 27.85, and close of 26.68. An individual stocks’s price contained within an ETF may show great volatility. The GDX closed today at 22.49, with a low of 16.18 and high of 22.95!
There were some notable trades possible today for any one with some cash on hand to make a bid. I especially noted KL (L18.03, H28.14, C26.17) and GOLD (L12.65, H17.15, C16.33). I didn’t pick those up, but certainly would have liked to! I did pick up a few shares of NEM, though (L33.00, H43.19, C40.73).
Just buying a little at a time in a market with all that’s going on. Mostly staying with producing companies with decent cash flow.
Miners really got crushed today, but eventually they’ll be back when things get settled down. A few I hold that were rather extremely volatile were WPM, PAAS, RGLD, SAND, NG, FNV and AEM.
MUX, GBL, MTLFF, NSRPF, RNKLF are more speculative plays. Buying incrementally in this volatility is something to be considered for those with a longer time horizon and risk tolerance for investments that should do well in the long run. Brokerages with no trading fees have made purchases of small lots much easier for anyone averaging down in this environment of high market volatility. Hoping for only a few typos as this post is is made on my phone (out of town for a while). GLTA and blessing to stay safe.
Just for fun, I checked out Kitco bullion today, man I’ve never seen so many out of stock labels on the various products and I’ve been buying since the early 2000’s FWIW
It is reported that US Mint can’t keep up with the demand. Paper trades destroying the spot commodity price?
Elrac just posted a link for an excellent Jim Rickards interview on the Covid19 thread. It’s really one of the most up to date informative interviews on what the market is experiencing (and the Gold and Silver markets).
Jim Rickards: The Economic Freeze is Here… on Kitco.com
Australian gold stocks should be a good buy right now as gold is at an all time record high in the local currency: Gold Price Australia
Fuel savings are in the $25 to $100 per ounce range so profitability will absolutely improve. (Unless there is a production stoppage locally due to sick workers of course.)
RNC (Royal Nickel) is my favorite at the moment. It is located in the middle of nowhere which should mitigate virus risk.(Only 35 cases in Western AU so far.)
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Silver Elephant Begins Trading on OTCQX under SILEF on March 23, 2020
Vancouver, British Columbia, March 23, 2020 – Silver Elephant Mining Corp. (formerly “Prophecy Development Corp.”) (“Silver Elephant” or the “Company”) (TSX: ELEF, OTCQX:SILEF, Frankfurt:1P2N) i s pleased to announce that at the opening on March 23, 2020, the Company’s trading symbol on the OTCQX® Best Market in the United States will change to SILEF (from PRPCF).
About Silver Elephant
Silver Elephant is developing its premier Pulacayo silver project in Bolivia. Further information on Silver Elephant can be found at www.silverelef.com.
SILVER ELEPHANT MINING CORP.
ON BEHALF OF THE BOARD
Mike, I grabbed some more RNX yesterday at .22 this is also one of my favorite companies with a tone of potential. Good luck on this one
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In at .16 on U.S. exchange. Should do quite well as long as there isn’t any significant disruption in production. Little concerned that Australia is shuttering mining operations but not sure if it affects this mine or how long it would before a restart.
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Yes agreed but it may give an opportunity to add a little more. Here is a good listen from Matt Gordon and Chad Williams if you haven’t heard it yet.
This seems to imply that Australia for the most part will continue to mine virus or no.
That’s what I’m getting out of this and after everything that has happen in Australia they need something that put confidence back into their economy. Hope to get back into the .50 range pretty quick. Volume is good so heading in the right direction.
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I hope they are smart and keep things isolated 200% and have new people coming in quarantined for 24 days. Pay them to sit and do nothing.
Don’t cut corners.
TDK.
Great presentation, this company is well under valued nothing but an upside here and I can see a $1.00 plus coming, they have a well worked plan for future growth and working through Covid-19 very exciting times to come. Maybe I can make some of the money I lost on Medinah back.
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