I think oil could run just because the shorts probably are going to be stubborn about covering being that there is no "fundamental" reason to do so. I think we could get to 45.
Gold miners got beat up today for such a minor move in the metal itself. Has anyone researched if they tend to be a leading indicator when it comes to the price of gold itself?
A lot of miners actually hedge their gold forward so ironically, on really big extended moves, they can actually get hurt pretty bad with higher prices. Many of them over hedge.
Thanks did some digging and the majors do seem to hedge anywhere from 30%-60% of their annual production but I can't blame them with the debt loads they have. If anyone is interested in a pure gold play that's not currently hedging then check out NMI.TO it also trades OTC under NMKTF. It's probably one of the best gold plays I've seen and the way I'd play gold miners. No debt, $950-$1000 all in gold costs and their mines are located in Australia so you get extra juice since their costs are in AUD and they sell in USD.
I think this is worth repeating, all the weekly breakouts so far in the oil patch have failed. I was thinking last year oil would bottom this spring, there is still major oversupply out there but good two way trades have set up. Look at the range in chk, sdrl, rig its amazing. Vol still very elevated in these names so just buying USO isn't going to work.
Sure am, AUDUSD just confirmed monthly Aup and will probably confirm next week on the qtr Aup, 30 day is at 13 and showing good momentum. ZARJPY not sure what your seeing with this. Currently looking like its failed off the monthly Aup and has confirmed on the qtr A down, 30 day is at 0 so no surprise that it failed there. Are you seeing the same?