Not long to go before the year end if upon us. Due to Bank Holiday’s, the last week or so of December is virtually all non trading days. Thus, whilst there are 7 calendar weeks to go (approx), it’s actually more like 6 trading weeks left.
The last 2 or 3 weeks of trading across the bulk of sectors/markets feels a bit tentative if anything a little disinterested. Advances have been strong in 2017 so it’s no surprise to see the market easing up. With the bonus season looking very much in the bag there might not be too much of an incentive for the usual santa rally this year. I guess we’ll have to wait and see. For Oil focused investments, OPEC’s Nov 30th meeting is the key event this month so perhaps a little ‘wait-and-see’ trading going on between now and then. PoO has had a good month or two and a period of consolidation or trading sideways within the $60pb levels (Brent) would be beneficial and support a decent launch pad for further rises should OPEC push the current output quota past March 18 and onto Dec 18. An extension of an extra 3 or 6 or 9 months has not been priced in by the market and there is still some doubt about which it will be or whether it will be extended at all. It’s not a shoe-in despite the encourageing noises from Saudi’s and Russians. The Saudi’s have been making quite a few noises across the MENA region with Iran, Lebanon, Yemen, Syria, Iraq and Qatar all being targeted in some form or another. It’s not unusual to see the Saudi’s throwing their weight around. But recently, the noises seem to be getting louder and louder. Oil investors will need to keep a close eye on the MENA region as any negative developments (such as recent pipeline explosions) can send Crude sharply higher. Considering the potential woes from North korea, the globe is far from ‘settled’ and uncertainty is rife. In situations like these, you would normally see GOLD showing significant strength. Signs of the precious metal in demand were seen last week as prices rose some $20oz before mysteriously getting spiked down on what looks like a huge paper deal late on Friday. These kind of volatile swings suggest that some meddling in GOLD prices is underway and it’s unclear why or whom would want GOLD prices suppressed right now. Fingers have been pointed at the usual manipulators as US banks such as JPM and Goldman Sachs have been ticked off in the past for using heavy handed tactics to suppress prices. The next few weeks will be interesting to watch as I expect GOLD demand to keep building into 2018. Will the mysterious ‘seller’ appear again to keep prices in check?
Week 45 saw the top picks swing around again for 1st position. This time it was the Telegraph that put in a good shift with the Daily Mail showing signs of being puffed out after a very good 3 week run. TheShareHub picks continue to bob along with little movement eitherway which is odd considering the bulk of the picks are sensitive to PoO. The latter has performed well so it’s about time equities began following suit.
The heads up picks/stocks of note of late such as AMER, CERP, SOLG and PANR all had quiet weeks. The majority consolidating and awaiting news. All have exploration / development work underway and all should have good news flows coming soon on key events. PANR is widely expected to announce first gas sales this week which will be a huge and highly significant event for the company.
Also, keep an eye out for an update from Hummingbird Resources. The company are presenting at the Proactive Investors forum on Nov 16th and investors will be keen to know how advanced the company is regarding Yanfolila Gold Mine. First Gold pour is currently cited for before year end. It’s not long now. A very exciting period ahead for the company and investors awaits.