Summary of June 1 Zeal Intelligence:
Month of May - example of psychological contrasts in commodities. Gold Bid up to $700, rise bled to silver..Once Gold began to falter mid Month, "it was all over".
US Dollar managed to finally rally after a steep slide...sparking the may Gold Sell off.
Heavy selling decimated the HUI down 18% from the top...Silver down 17% from the top..
Gold stock weakness bled into Oil stocks.
Oil did not slide far and soon regained its footing,
Metals were extremely overbought in May, Oils were not..
Secular-trending markets rise 2 steps in mighty up legs before retreating back one step.
Corrections are a priceless opportunity to reevaluate positions & prune out poor performers, build up your cash war chest and research new plays.
Cut SYNM (poor performer) loose.
Polymet...15% stop pushed him out at $4.16 on 5/16...one week later, stock was at $3.09. Odds are the correction is not over yet. He is now able to buy 33% more shares of Polymet.
Comments on the Dollar rally driven gold sell-off: Ironic since Gold and the dollar are supposed to be and have been decoupling for nearly a year.
"I think gold's 200 dma remains the highest probability target for this correction. It remains a long way down from here though, near $534 today. There are 2 ways gold can return to the 200 dma..either it rapidly falls, or it slowly grinds sideways and waits for its 200 dma to catch-up. I am betting on the former this time around.
Once a sharp correction begins, it starts scaring people and gathers downside inertia. In a lot of cases, this momentum actually carries it below its 200 dma for a month or two.
By Bull to date standards, this correction has barely started. We are 14 days into it so far and down 21% at its worst point. The 5 previous major HUI corrections averaged 30% losses over 88 trading days.
I will be watching it closely this summer and looking for the green lights to redeploy into the elite gold and silver stocks. I am more excited about this next leg up than any before...since we are now in Stage Two and the amounts of capital in this game ought to explode and push prices much higher in the future.
"In a situation where a price has gone parabolic and suddenly fails, its is far better to sell instantly and ask questions later"
"Lots of Traders are growing concerned about the hurricane season, which may cause them to take out long positions in energy trades"
Copper: Thinks copper is due for a sharp correction.
Redeploying into the following:
Vaalco Energy EGY,
Swift Energy SFY,
Ivernia IVW "being reloaded right away below for another rouund (could not find this - TSX is the exchange - must be Canadian)
Cimarex Energy (XEC)
COP - "Best Buy of all the major oils today".
CHK....
He reveals "PCU is poised to soon make an offer on Peru's copper (CUP)"...wow!! That explains today's meteoric rise in CUP.
I saw that and found no PR's....How did he know???
At an energy forum in Kuwait, Goldman Sachs said oil prices will easily top $105 a barrel in the event of any major disruption in supplies anywhere...market fundamentals are pointing for a mean reversion higher. Severe Hurricane Season predicted for the US this Year would be very bullish.
Crude oil is in the early stages of what he calls a "mult-year super spike period" Wow.
Summer seasonals for gold, silver and copper are fairly weak on balance.
Crude oil does have strong summer seasonals..tends to be flat in June and July, but then starts climbing in Autumn. "Stay Long Oil"
