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Monthly Wrap Up

By Jack DavisMarket OverviewJun 06, 2017 11:49
au.investing.com/analysis/monthly-wrap-up-200192999
Monthly Wrap Up
By Jack Davis   |  Jun 06, 2017 11:49
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Originally published by Chamber of Merchants

Bubbles, bubbles, everywhere. Compared to last month, we had a bit of a slow news flow this time around. Bitcoin surged to extreme highs, Trump had his week in the spotlight with impeachment talk and his overseas trip. The wannacry malware virus infected hundreds of thousands of computers, Kim Jong Un fired off more missiles and there were several more terror attacks around the world. All this while stock markets explode to new record highs around the world and the CBOE Volatility Index crashes to record lows. Oh how we must love the new world of the plunge protection team and central bank intervention.

Lets see how the markets played out…

Table
Table

Ouch, the Speculator taking another beating while gold continues to move up (almost makes me wannacry). This month I moved out of some of the big caps and into the small caps because of the beat down they were seeing. I’m hoping when this ETF re-balance ends in June I will be proven right. The US Dollar Index continues to deteriorate.

AUD GOLD Daily – Just keeps getting stronger

Chart
Chart

USD Gold 4 hr – Just broken through that 5 year trend line

Chart
Chart

USD Gold Daily – Next week will be key

Chart
Chart

USD Gold Weekly – Rocket launch imminent?

Chart
Chart

Lets take a look at the miners


Its a bit of a mixed bag for May. I have increased positions in Ramelius Resources Ltd (AX:RMS), Blackham Resources Ltd (AX:BLK) and Resolute Mining Ltd (AX:RSG) while I exited Northern Star Resources Ltd (AX:NST) completely with some nice gains, only time will tell if its the right decision. I also took a rather large speculative position in Troy Resources Ltd (AX:TRY). The negativity surrounding this company it at extreme levels, and while they are in a tight situation, they are a producing mine with forecast 65-75,000oz in FY18 at a $35m market cap with huge exploration potential. They are being priced for failure, and if they succeed than the upside will be huge. Troy will either be the next RMS/SBM story or it will go broke, a gamble I am willing to take, and with my research I am betting I will be right at about 75%. (NOT INVESTMENT ADVICE – INVEST AT YOUR OWN RISK)

On to the chart of the month, and its none other than Bitcoin. What an amazing run its had. There has been alot of commentary around to buy this thing, the greed is at extreme levels with some analysts calling for $10,000, $50,0000 and even $100,000 price levels. If your on this website than you can probably recognize the mania phase, and apart from just looking at the charts its when taxi drivers start talking about it and its on mainstream tv and in newspapers. Well i took an interesting taxi ride home last week and the main conversation was bitcoin brought up by the driver. And why not with 55,000% gains in a few years. The only question is how high will it go?

Table
Table

Next month will be interesting in the markets. Will gold push past that trend line? If it does and the ETF re-balance ends at the same time, the upside in the miners will also be huge. Lets hope so. Until then, Enjoy.

The Speculator

Monthly Wrap Up
 

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Monthly Wrap Up

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