<Any interest in the stock I mentioned the other day by PM?>
I'm going strictly with larger more well known liquid trading names that at least trade on the Amex. The smaller more obscure names you're looking at may have great merit, but I'm not really looking for that pure junior "class" right here.
<How long Russ do you think the correction in the mining stocks continues which may mean consolidation or flatlining for a while from here?>
The specs have reduced their longs in gold from 225,609 to 80,755 in a month, which tells you the swiftness and intensity of this bogus "end of reflation playbook" rout. They just got in too heavily is all, as they are right now in energy. It appears to me the damage has been done, and I would really doubt if the last 80,000 gets sold. I think things will start to happen fast in the emerging producer stocks. I have to believe the majors won't miss this chance, so my prediction: doubles by the end of summer in several key juniors (maybe CLG) from munches, irrespective of the POG.
Copper is of course the metal that intrigues me the most. $1.15 on the Sept future is bogus. Specs have reduced longs from 45,589 to 12,824. Combined LME and Comex inventory is 296,391 MT as of Friday, so they are steadily running out of product. That's a price rationing level. The so called collapse of Chinese demand is a farce, a perp. I'm sure someone is getting positioned for a raid, and price spike. I finally moved on NXG, took a good size position at 1.38 last week, to go along with NTO, and Sept copper futures. I had an order in on WHT at 2.17, when it broke Monday, but didn't get filled, must have missed by about three minutes.
The short answer to your question: I expect a monster "caught with pants down" rally in metals. |
