Loading ...Looks like we have a reversal of everything we’ve had for the last couple months.
SM futures soaring. Oil up a buck to $64.70. Dollar up. Bitcoin flat after being up $10K since the weekend. Rates backing off 4 bips.
Gold down 2%, but silver up 1%. Problematic for the pm shares though as we saw yesterday.
So far, the correction in gold is orderly, and we could easily correct down another $200. Silver, OTOH is not correcting with gold, nor should it because it’s not close to overbought.
Unfortunately, as we saw yesterday, silver being firm with a rising SM isn’t enough to carry pm shares and they are weaker in the premarket.
Earnings start coming in today with NEM leading the charge. Interesting to note that Blackrock has bought a big chunk of NEM shares as deer79 mentioned yesterday. Then they were upgraded yesterday by Canaccord Genuity and price target moved from $56 to $75. Earnings estimate is $.90. Seems low for a company that earned $1.40 last quarter with gold up substantially since then. If they can’t beat that estimate, they’ve got problems. It probably won’t matter though if gold continues to correct, the shares will get hit.
In terms of the shares, this is nothing like 2001-2.
PMI’s are out at 0945 am EST, expectations have also been lowered.