CANNABIS WEDNESDAY

FLAT LINE AFTER A HEART ATTACK, but what awaits come the Holidays?GDX+CANNABIS+AutoResist

 

so the GREEN is a Cannabis Index, which shows once investors got over their reluctance, they embraced the reality that Cannabis was and still is a coming trend.

For this reason, I’d take a Scientific Wild Assinine Guess (S.W.A.G) that a minimum of 2-4 times the CANNIBIS related stocks, in the short run, are going to have speculative success, as compared to the Metal Miners and Developers.  BUT be prepared for that to switch places.   I am still long a lot of Cannibis related stocks, and also Miner related stocks.

Canadian Legalization looms July 1, and the cyclical rallies in the Precious Metals and Miners sectors, coming “about” six (6) months apart, generally Jan and Jul.   Now, simply, the basic meme is “BUY The RUMOR”, and “SELL The NEWS” ( the obvious announcement concerning the Rumor).   So with the Cannabis industry expanding like a bucket of water spilled on a tile floor, there is a time to beware of The DRAIN, where some of the companies disappear.  Not all bad though, many will be absorbed by the bigger plays, that were investments for the “early adaptors”, and now provide buyouts for the smaller players.

Lets go back to the really horrible or really great or just indifferent chart of the GDX.

GDX has been locked in a range of a high of 25.5 and a low of 20.67 for eighteen (18+) plus months.  Highly unusual ?  Yes I will go with that unusual label.  For now.

Now for those who witnessed the 2011-2012 debacle where the US Govt got spooked because they lost their AAA rating, moved down to AA, and the Govt. then took steps advocated by Paul Volker, former Fed Chair, who said the mistake of the 80s, was not to control the price of Gold.  So the Exchange Stabilization Fund, visible hand, probably using J.P.Morgan bank as their agent, began to degrade the price of gold on the paper markets.  So in April, the degrading attempts got more and more intense, and in the week ending April 12th, 2013, a quantity of paper gold contracts approximately equivalent to TWO years of a major miner, were dumped more or less at one time, resulting in a horrendous break in the paper contract gold price.  It was good for the ESF in the short run, but maybe not in the long run.  Such hasty action resulted in a GAP which still exists today,  creating a potential Island Bottom, from April 12 to now, betwn GDX 31.44 and GDX 32.54, not an inconsequential or fractional gap.   While 25.50, the current top end of the GDX trading range for the last eighteen months, is far from 31.44 GDX, that is where the 2017 rally ran up to, but did not cross.   This gap, to me, along with others in there, I know as the “STRAITS of HELL”.  If arriving there, the GDX jumps the gap, it will have completed an Island Bottom of FIVE (5) years.  Try to comprehend what that would say.  For example, a structural analysis (blueprint) style, projects an upside potential to 33 GDX as the target of the next move.  Longer term, it is double that.  Possible ?  Sure.  Probable?  I don’t know, but with a gap, an eighteen (18) month flat line, a rally from 12 GDX to 31 GDX in eight (8) months, it is difficult to come up with any probability except the price of Gold is manipulated with paper contracts until is its no longer done.  Think of the turkeys at Thanksgiving.  Everything is OK until that morning.  So this will keep up until it can’t.  Then I think the probability of the GDX jumping the “STRAITS of HELL” like a crown fire in the tall pines, is very real, at which time, GDX will be “on-fire”, or en fuego as Krazy Cramer likes to say.  So much for that, now you know.

Let talk about CANNABIS Stocks now:exampleCANN

demoNine.v

exampleQCC

Pretty much illustrates the point that not all   Cannabis stocks go straight up,  but the trend is good for now.  Subscribe and get our latest picks.

 

 

 

 

 

Wed Cannabis and Metal Explorer Update

 Well its after market close on Wed, and I ended up with 9 Cannabis related stocks, 8 Canadian and one US OTC.  Of those 3 are recommendations(Canadians), with potential for you to act upon them now if that is your style.  Far and away XYZ.Zo, is leading the Cannaibs Reco’s, by a large margin.  In the Mining Sector,
ABC.Go (geologically searching for the “7 Talents of Gold) leads FAT.Cat with its Lithum deposit in Slow River, Manitoba) by a 4 to 1 performance to date margin.
In ABC’s case you are on the geologic trail of  Historic Gold Cities in Latin American’d Cordillas  , while with MNO.Lz Mining you are beginning to exploit a serious Energy deposit in a stable and friendly jurisdiction..  Given your appetite for risk, there is a choice.  Rewards in either case could be substantial, as much as a triple in the case of XYZ.Zo and close to a potential double, in the case of ABC.Go both in the span of say, one year.  True names were changed to protect the innocent, but for the full report, drop
drop me an email.
 BlockFatCatCNP

Good Luck, DG

 

Information contained herein is for educational and informational purposes only. Investors are responsible to execute their own due diligence investigations to protect their capital. Publisher or associates may have positions in these stocks as well. CopyRight Denaliguide, DGS Publications, 2017-2018

Golden Triangle Update

Considering the sheer numbers of Explorers, developers and miners staking and drilling in the Golden Triangle of BC, its not surprising we have not heard more, as the drilling is just getting underway.   No doubt the leader in progress and grade is PVG who just had a nice Range-Breaker move.  Sustain this move and it will be a great signal.  This is a signal

EXAMPLE.pvgthat is higher than any in the preceding 8 weeks, so if it can close up strong 3 days in a row, we will consider calling it the beginning of a TREND.

Known best for its Nickle Mtn Discovery, Garibaldi Resources and its cousin, Metallis are starting their drill campaigns to identify and outline their reserves.  These guys are the Whales amongst the explorers in the Golden Triangle.  No news yet, too early as winter in the mountains has just subsided enough to get the drill rigs moving to their sites.

So from whales to minnows, you have a serious staking rush, option activity with companies the size of Tudor Gold, or Braxton Metals sticking their toes in the water, swimming with the whales, and jumping on any announcement or development in the area.   Other players like Colorado Resources have some serious stakes in this area.

Even the biggies in here have seen the Exploration Euphoria take their stocks up, and then when the adrenaline drained away, watched their stocks drop by 2/3’s and CXO is in that crew.

Bottom line here is Eric Spout and his entourage have put a lot of money in both GGI and MTS, and helped GGI raise $10,000,000 for its exploiting its development of this discovery, and NTS to a smaller extent.   Not that smaller companies can’t cut it here, not at all.  GGI was a minnow before Nickle Mtn.  This is the mining business where most of the time, more money is put into the ground than is taken out of it, in so many cases.  And the other caveat is that the opposite happens enough to keep the investment capital flowing to them.

Side note is that the rumor is that there is a lot of physical gold accumulation going on, rather than the constant paper shuffling of contracts, KRIMEX Style by the Boyz, and if this were true, given typical skullduggery, I’d suspect the funds were partially coming out of the stocks in this sector, which would account for the languishing of all but the most senior of the gold miners, typically listed in the $XAU Index.

Junior Cannabis Co’s action

Depending on your view, looks like the Canadian Cannabis Junior support and related stock are getting a little frisky.  Maybe a Rinse & Repeat Cycle has come around.  Here are a few”:

EXAMPLE ACB.ToAurora is pretty big, yet showing a similar pattern to others here.

EXAMPLE CANN.Ca

Here is another not a direct supplier but ready to start.  Same pattern.

EXAMPLE GET.Ca

Again, direct relation to the industry but not in supply.

EXAMPLE QCC.Ca

Again, another business related to Cannabis.

So what is the takeaway here?

Mine?  Investors feel safer even in start up cannabis operations than the general or DJI markets.

Drop me a note and get a sample of this weeks Letter, with a number of reasons WHY.

 

BEST

DG

Wickersham

GOLDEN GRIN or………..SMIRK

 

  • The guys who did this first did it better but here is an idea.   Six (6) years of what I take to be suppression, have failed to do anything but dent the Gold price.  It was bent but not busted.  We like it.  Frustrating as it is like watching paint dry, it is the only game in town, but so the casino seems to be running short of maneuver room.   Right now about 2 dozen Juniors and Micros look quite appealing, so please sign up so we can share them with you.  Limited time HALF price Offer. SIGN UP Link
    GoldenGrin
    Sine Wave is flattened but has a long ways to go

    Selections are available separately, in Special Reports, the details will be posted this week on Pages 2, 3 & 4 for your selection.  Crazy as these markets are, a Long Term Chart like this can clear up a lot.  Later will post other charts as well.  Best.  DG