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.
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The ACD Method
- Thread starter sbrowne126
- Start date
Very little correlation actually.
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.
Mav are you till watching EXC? What a nice performer.
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 the real pain is going to be time. The storage costs are still very high so even if oil sits in the low 30's for another 12 months, it's going to cost $7 to $10 to store it which is he same thing as oil trading down another 7 to 10 dollars in price. It's all costs at the end of the day.
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.
All the euro crosses seem to be putting in +4 days do far today off the back of ECB rate cut.
Anyone watching AUD/USD? ZAR/JPY?
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.Anyone watching AUD/USD? ZAR/JPY?
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?