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Will the Stock Market’s Santa Rally Bring Holiday Cheer to Investors?

Stocks

A smart investor listens to the stock market and this week’s stock market action was a perfect example of why this is important. 

It was a roller-coaster week in the stock markets leading many investors to quickly sell holdings when there was a big selloff and scramble to go long again on Friday when the broader stock market indexes turned higher. This is why it’s a good idea to always look at a longer time frame chart to get a sense of the long-term trend before making hasty decisions. 

If you pull up a weekly chart of any of the three major indexes you’ll see that the S&P 500 ($SPX) and Nasdaq Composite ($COMPQ) are trending higher. The Dow Jones Industrial Average ($INDU) is also doing the same but it’s just hanging in there by a whisker.

The Ups and Downs

Comments from Fed Chairman Jerome Powell on Wednesday sent investors into selloff mode which spilled over into Thursday. But Friday’s slightly lighter-than-expected November PCE may have reversed investor sentiment. The broader stock market indexes moved higher spreading some holiday cheer to an otherwise gloomy week. 

What made the market move higher? It doesn’t make sense to look for a reason for the reversal in sentiment. Remember, it’s best to listen to the market and follow along. That said, a few interesting data points are worth noting.

The Federal Reserve indicated their focus was on a cooling of the labor market in their last few meetings. However, Wednesday’s comments from Chairman Powell suggested that the labor market is doing fine now but the Fed’s focus has switched to inflation. That may have made investors nervous and triggered the massive selling we witnessed on Wednesday. Friday’s light November PCE may have been a sigh of relief that brought back the optimistic sentiment. 

Despite the optimistic sentiment, one important news we can’t lose sight of is the possibility of a US government shutdown. A shutdown doesn’t necessarily impact the stock market but there may be inconveniences such as a reduction in government services that may send ripples through the economy.

The Year-End Party

As 2024 winds down, there will likely be very light trading days but there are some important events that unfold at the end of the year. There’s the January Effect which is when small-cap stocks start rallying. Small-cap stocks got a boost post US election but since late November they’ve been sliding lower. The daily chart of iShares Russell 2000 ETF (IWM) shows the small-cap trend is still bearish. 

FIGURE 1. DAILY CHART OF IWM. Small cap stocks took a big hit in December. Look for the full stochastic oscillator to cross above the 20 level with some follow-through to confirm their seasonal rally. Chart source: StockCharts.com. For educational purposes.

The full stochastic oscillator is deep in oversold territory and a cross above the 20 level would be encouraging for small-cap stocks. But there needs to be follow-through for the small caps to have a bullish rally.  

In addition to the January Effect, there’s the eagerly awaited Santa Claus rally, which is supposed to start next week. Friday’s price action may have reignited the possibility of having Santa show up this year. But I wouldn’t hold my breath just yet. 

If you look at the daily chart of the S&P 500 below, you’ll see that the three market breadth indicators displayed in the lower panels had started declining in late November, which should have signaled that the market was ripe for a selloff.

FIGURE 2. S&P 500 HOLDS ON TO SUPPORT. Friday’s price action may look slightly bullish but it needs more follow-through to confirm a reversal. Chart source: StockCharts.com. For educational purposes.

What is concerning is that Friday’s price action didn’t change the market breadth narrative. So even though Friday’s rise was sizeable, with a bullish engulfing pattern that closed at the 50-day simple moving average, I wouldn’t rush to buy the dip just yet and certainly not on triple-witching Friday. For all you know, there could have been some short-covering going on. I’ll need to see more follow-through of the upside move before adding more positions to my portfolio. At least the S&P 500 stayed above the support of its mid-November lows.

The daily chart of the S&P 500 Equal Weighted Index ($SPXEW) vs. the S&P 500 gives you an idea of how dominant the heavily weighted stocks influence the index.

FIGURE 3: S&P 500 VS S&P 500 EQUAL-WEIGHTED INDEX. The less-heavy weighted stocks in the S&P 500 are lagging the S&P 500. The equal-weighted index is trading below its 100-day moving average and has a long way to go before re-establishing its uptrend. Chart source: StockCharts.com. For educational purposes.

$SPXEW is trading below its 100-day SMA. Note that Friday’s high came close to the 100-day SMA. A close above the 100-day SMA would be the first sign of a trend reversal in the equal-weighted index. But one day’s action doesn’t make a trend. A series of higher highs and higher lows needs to be established before a trend has indeed reversed. It would be more confirming if the non-Mag Seven stocks showed signs of catching up with the big S&P 500 index.

Volatility Pulls Back 

One encouraging point to end the week is the Cboe Volatility Index ($VIX) closed below 20 (see chart below). Investors were getting so complacent towards the end of November but if you had noticed the VIX creeping higher, you’d have seen the selloff coming. 

FIGURE 4. DAILY CHART OF THE CBOE VOLATILITY INDEX ($VIX). The VIX was at very low levels from November but it slowly started moving higher signaling that investors were getting fearful. This led to Wednesday’s spike. Chart source: StockCharts.com. For educational purposes.

The pattern in the chart of the VIX shows that a similar pattern occurred from June to July, right before the August spike. Could a similar scenario unfold this time?

The Mark Twain quote, “History doesn’t repeat itself but it often rhymes,” explains it so well. So as you navigate the stock market, listen to the rhythm and follow its lead. 

The bottom line: Set up your Dashboard panels on the StockCharts platform and get a bird’s eye view of the stock market.

End-of-Week Wrap-Up

  • S&P 500 down 1.99% for the week, at 5930.85, Dow Jones Industrial Average down 2.25% for the week at 42,840.26; Nasdaq Composite down 1.78% for the week at 19,572.60
  • $VIX up 32.95% for the week, closing at 18.36.
  • Best performing sector for the week: Technology
  • Worst performing sector for the week: Energy
  • Top 5 Large Cap SCTR stocks: Applovin Corp. (APP); Palantir Technologies (PLTR); Reddit Inc. (RDDT); Astera Labs, Inc. (ALAB); MicroStrategy Inc. (MSTR)

On the Radar Next Week

  • November Durable Goods Orders
  • November New Home Sales
  • October S&P/Case-Shiller Home Prices

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

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Investing

Opawica Announces the Closing of Non-Brokered Private Placement

Investing

(TheNewswire)

December 20th, 2024 Vancouver, B.C. TheNewswire – Opawica Explorations Inc. (TSXV: OPW) (FSE: A2PEAD) (OTCQB: OPWEF) (the ‘Company’ or ‘Opawica’), a Canadian mineral exploration company focused on precious and base metal projects, is pleased to announce that it has closed the recently announced private placement (December 17, 2024) of 4,330,00 Units for total aggregate proceeds of CAD $1,082,500 each consisting of one flow through Share of the Company and one half Common Share Purchase Warrant at a price of $0.25 per Unit.

Each purchase Warrant is exercisable into one Common Share at an exercise price of $0.40 per share at any time up to 24 months following the closing date. The Company also maintains a Warrant Acceleration option allowing Opawica to accelerate the expiry date of the Warrants if the daily trading price of the Common Shares on the TSX Venture Exchange is greater than $0.55 per Common Share for the preceding 10 consecutive trading days. All securities issued under the Offering and including Warrants will be subject to a four (4) month and one day holding period being April 21 st, 2025.

As part of the closing, Opawica has agreed to compensate the finding agents with a commission of up to 6.0% cash totaling $64,950, and up to 6.0% purchase Warrants totaling 259,800 Warrants based on the gross proceeds of the Offering. Each purchase Warrant is exercisable @ $0.40 according to the terms described above.

The Company intends to use the net proceeds to advance drilling obligations on its flagship properties in the Abitibi Gold Belt Québec.

The Private Placement remains subject to receipt of all required approvals, including the final approval of the TSX Venture Exchange, as well as execution of formal documentation.

Blake Morgan CEO and President states, ‘With a great cash position in hand, Opawica is now primed to start drilling on its flagship properties in the Abitibi Green Stone Belt Québec. A large number of high priority drill targets have been identified across our two flagship properties and the company is eager to drill them. The company will have some more news regarding the drill program soon. We welcome shareholders to visit www.opawica.com and follow us on our journey.’

A bout Opawica Explorations Inc.

Opawica Explorations Inc. is a junior Canadian exploration company with a strong portfolio of precious and base metal properties within the Rouyn-Noranda region of the Abitibi Gold Belt in Québec. The Company’s management has a great track record in discovering and developing successful exploration projects. The Company’s objective is to increase shareholder value through the development of exploration properties using cost effective exploration practices, acquiring further exploration properties, and seeking partnerships by either joint venture or sale with industry leaders.

FOR FURTHER INFORMATION CONTACT:

Blake Morgan

President and Chief Executive Officer

Opawica Explorations Inc.

Telephone: 236-878-4938

Fax: 604-681-3552

www.opawica.com

info@opawica.com

Neither the TSX Venture Exchange nor its Regulation Service Provider (as the term is defined in

the policies of the TSX Venture Exchange) accepts responsibility for the adequacy of accuracy

of this news release.

Forward-Looking Statements

This news release contains certain forward-looking statements, which relate to future events or future performance and reflect management’s current expectations and assumptions. Such forward-looking statements reflect management’s current beliefs and are based on assumptions made by and information currently available to the Company. Readers are cautioned that these forward-looking statements are neither promises nor guarantees, and are subject to risks and uncertainties that may cause future results to differ materially from those expected including, but not limited to, market conditions, availability of financing, actual results of the Company’s exploration and other activities, environmental risks, future metal prices, operating risks, accidents, labor issues, delays in obtaining governmental approvals and permits, and other risks in the mining industry. All the forward-looking statements made in this news release are qualified by these cautionary statements and those in our continuous disclosure filings available on SEDAR at www.sedar.com. These forward-looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances save as required by applicable law.

Copyright (c) 2024 TheNewswire – All rights reserved.

News Provided by TheNewsWire via QuoteMedia

This post appeared first on investingnews.com

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Investing

Top 5 Canadian Mining Stocks This Week: Omineca Jumps 67 Percent

Investing

The S&P/TSX Venture Composite Index (INDEXTSI:JX) fell 2.87 percent on the week to close at 586.88 on Friday (December 20). Meanwhile, the S&P/TSX Composite Index (INDEXTSI:OSPTX) posted a 2.6 percent decrease to hit 24,599.48, and the CSE Composite Index (CSE:CSECOMP) was down just 0.12 percent to reach 130.58.

Statistics Canada released November’s consumer price index (CPI) data on Tuesday (December 17). The data showed that inflation in Canada continued to cool, posting a 1.9 percent year-over-year increase, down from the 2 percent recorded in October.

The agency said the decrease was partly due to a 0.4 percent decrease in gasoline prices and consumers taking advantage of lower prices during Black Friday sales.

StatsCan also released its October monthly mineral production survey on Thursday (December 19). The release shows copper production in Canada increased to 37.5 million kilograms from 35.43 million in September. Gold production also increased, rising considerably to 26,553 kilograms from 15,296 kilograms the prior month. Meanwhile, silver production decreased slightly, with 25,166 kilograms produced in October compared to 26,827 kilograms the previous month.

South of the border, the US Federal Reserve held its final meeting of the year this past Tuesday and Wednesday (December 18). The committee cut the benchmark rate by 25 basis points, lowering it to 4.25 to 4.5 percent.

The Fed cited an improving economic outlook, with inflation easing towards its target 2 percent range and a better job market balance. However, the Fed is widely expected to slow further cuts in the new year as it continues to gather data.

In his remarks following the meeting, Fed Chairman Jerome Powell wouldn’t rule out future increases as some inflationary indicators have stalled in recent weeks.

The news was not well received on Wall Street, with the Dow plunging more than 1,000 points following the announcement.

Over the course of the week, markets were broadly down. The S&P 500 (INDEXSP:INX) fell 2.19 percent to end Friday at 5,930.84, while the Nasdaq-100 (INDEXNASDAQ:NDX) shed 2.69 percent to 21,289.15. Meanwhile, the Dow Jones Industrial Average (INDEXDJX:.DJI) finished the week down 2.25 percent at 42,840.25.

Precious metals also took a hit on the Fed news, with gold and silver plunging below US$2,600 and US$30 respectively.

Overall, gold lost 1 percent over the week to finish Friday at US$2,623.92 and silver sank 3.42 percent to US$29.49 per ounce. Additionally, copper fell 2.61 percent for the week to close at US$4.10 per pound on the COMEX. The S&P GSCI (INDEXSP:SPGSCI) was down 1.32 percent to close at 539.08.

Learn about this week’s five best-performing Canadian mining stocks below.

Data for this article was retrieved at 4:00 p.m. EST on December 20, 2024, using TradingView’s stock screener. Only companies trading on the TSX, TSXV and CSE with market capitalizations greater than C$10 million are included. Companies within the non-energy minerals and energy minerals sectors were considered.

1. Omineca Mining and Metals (TSXV:OMM)

Company Profile

Weekly gain: 66.67 percent
Market cap: C$10.91 million
Share price: C$0.075

Omineca Mining and Metals is a gold exploration and mining company working to advance its Wingdam project in British Columbia, Canada.

The project consists of 61,329 hectares of hard rock and placer claims within the Cariboo mining district. It is a 50/50 joint venture with D&L Mining. The site currently hosts mining operations focused on extracting placer gold from gravels 50 meters beneath Lightning Creek.

According to the company, the mine is extracted through gravity separation, which uses an existing reusable water supply without chemicals, mill waste or tailings.

Omineca’s shares saw price gains at the end of the week, but the only news came early in the week after the company announced on Tuesday that it had expanded its diamond drilling program at Wingdam from 10 holes to 17 and up to 10,000 meters. So far, the company has completed six holes with two rigs and sent its first sample to be assayed.

The company said drilling has encountered some quartz veins with various concentrations of semi-massive to massive sulphide mineralization, and included photos of the mineralized cores. Samples from several holes will be assayed for coarse gold.

Additionally, on December 6, the company announced that it had entered into a non-brokered private placement of flow-through units for C$0.055 per share, with gross proceeds of up to C$2.4 million. The company said it would use the funds to explore Wingdam further as it works to find the lode source of the placer gold.

2. Bayhorse Silver (TSXV:BHS)

Company Profile

Weekly gain: 45.45 percent
Market cap: C$17.87 million
Share price: C$0.08

Bayhorse Silver is a silver-focused company currently working to bring the Bayhorse silver, copper and antimony mine in Oregon, US, back online.

The mine was originally in operation until late 1984 and closed when the price of silver dropped to under US$6 per ounce. Historic sampling during the 1980s identified grades of 2,146 grams per metric ton (g/t) silver, and a bulk sampling program conducted by Bayhorse in 2014 found bonanza grades of 150,370 g/t silver.

The company has continued to explore the property and, in October 2018, produced a maiden resource estimate that showed the property hosts inferred resources of 6.33 million ounces of silver from 292,300 US tons of ore with an average grade of 21.65 ounces per US ton.

The most recent update from the project came on December 19 when the company reported that drilling had encountered a strongly brecciated zone at 112 meters downhole, continuing to the current drilling depth of 148 meters. Bayhorse said the XRF field analysis showed elevated levels of copper, zinc and lead, but confirmation from a formal lab assay is needed.

3. Defense Metals (TSXV:DEFN)

Company Profile

Weekly gain: 40 percent
Market cap: C$32.53 million
Share price: C$0.14

Defense Metals is a rare earth metals exploration and development company currently focused on advancing its Wicheeda property near Prince George in British Columbia, Canada.

The property consists of 12 mineral claims covering 6,759 hectares and hosts rare earth element mineralization, first discovered at the site in 1976. Between 2019 and 2023, Defense extensively explored the property, drilling 60 diamond drill holes totalling 12,883.91 meters.

In August 2023, the company produced a technical report for the property with its most recent mineral resource estimate. The site hosts measured and indicated resources of 699,000 metric tons of total rare earth oxides from 34.17 million metric tons of ore with an average grade of 2.02 percent, as well as inferred resources of 113,000 metric tons of total rare earth oxides from 11.05 million metric tons of ore with an average grade of 1.02 percent.

The company’s most recent news came on Thursday, when it announced it would grant 9.95 million incentive stock options to directors, officers and consultants. The options are exercisable for five years, with 8.85 million offered at C$0.125 per share, 400,000 offered at C$0.205 per share and 700,000 at C$0.26.

4. Nevada Lithium Resources (CSE:NVLH)

Company Profile

Weekly gain: 37.5 percent
Market cap: C$53.18 million
Share price: C$0.22

Nevada Lithium Resources is an exploration and development company working to advance its Bonnie Claire lithium project in Nevada, US. The property consists of 915 placer claims covering an area of 74.1 square kilometers in Nye County.

According to a mineral resource estimate issued on Monday (December 16), the site hosts indicated resources of 202,000 metric tons of contained lithium from ore with an average grade of 1,074 parts per million (ppm) and inferred resources of 499,000 metric tons contained lithium at an average grade of 1,106 ppm.

Along with the lithium, the site also has significant quantities of boron, hosting an indicated resource of 231,000 metric tons of contained boron from ore with an average grade of 1,519 ppm and an inferred resource of 407,000 metric tons at 1,505 ppm.

In addition to the technical report, Nevada Lithium announced the same day that it had been given conditional approval to list its common shares on the TSX Venture exchange. Once final approval is received, shares will be listed on the TSXV under the same ticker symbol and delisted from the CSE.

5. Gratomic (TSXV:GRAT)

                {'@context':'http://schema.org','@type':'Corporation','name':'Gratomic Inc.','url':'https://www.gratomic.ca','description':'Gratomic Inc is an advanced materials company. It is focused on low-cost mine to market commercialization of carbon-neutral, eco-friendly, high purity vein graphite and is set to become a key player in EV and Renewable Resource supply chains. The company is in the process of solidifying its plans for the micronization, spheronization, and coating of its Aukam vein graphite. The company is engaged in the acquisition and exploration of assets located primarily in Canada and Namibia.','tickerSymbol':'TSXV:GRAT','sameAs':[],'image':'https://investingnews.com/media-library/tsxv-grat.jpg?id=27771440&width=980','logo':'https://investingnews.com/media-library/tsxv-grat.jpg?id=27771440&width=210'}
Company Profile

Weekly gain: 33.33 percent
Market cap: C$13.02 million
Share price: C$0.06

​

Gratomic is a junior graphite development and exploration company with assets in Namibia, Canada and Brazil.

Its primary project is the Aukam graphite property, located near the port of Luderitz in Southern Namibia. It covers an area of 141,500 hectares and has been granted four prospecting licenses. The site hosts an existing 7,200 metric ton per year modular processing plant, with the capability to be upgraded to 22,000 metric tons per year.

Gratomic has been working to create stockpiles at the Aukam mine as it starts to ramp up production. During the commercial commissioning phase of the plant, the company produced 300 metric tons of graphite.

Gratomic shared an update on the project on November 21, and announced the appointment of new Chief Operating Officer and Director Hermanus Manuel Silver.

“We have already started working on a business plan which we plan to implement in December 2024 to set the stage for greater strategic advancement of the asset and the processing plant,” he said.

The company’s most recent news came on December 11, when it alleged that its former chief operating officer had wrongfully transferred some of its mining claims at its Capim Grosso property in Brazil to another graphite company. It has yet to be approved by the country’s mining authority, and Gratomic is seeking legal advice. The company stated that it had made significant investments in the transferred claims, and it plans to sell the property if it can recover it.

Gratomic had previously allowed other mining claims at its Capim Grosso property to expire as it said further exploration and development costs at the site were not justified and would drain company resources.​

FAQs for Canadian mining stocks

What is the difference between the TSX and TSXV?

The TSX, or Toronto Stock Exchange, is used by senior companies with larger market caps, and the TSXV, or TSX Venture Exchange, is used by smaller-cap companies. Companies listed on the TSXV can graduate to the senior exchange.

How many companies are listed on the TSXV?

As of June 2024, there were 1,630 companies listed on the TSXV, 925 of which were mining companies. Comparatively, the TSX was home to 1,806 companies, with 188 of those being mining companies.

Together the TSX and TSXV host around 40 percent of the world’s public mining companies.

How much does it cost to list on the TSXV?

There are a variety of different fees that companies must pay to list on the TSXV, and according to the exchange, they can vary based on the transaction’s nature and complexity. The listing fee alone will most likely cost between C$10,000 to C$70,000. Accounting and auditing fees could rack up between C$25,000 and C$100,000, while legal fees are expected to be over C$75,000 and an underwriters’ commission may hit up to 12 percent.

The exchange lists a handful of other fees and expenses companies can expect, including but not limited to security commission and transfer agency fees, investor relations costs and director and officer liability insurance.

These are all just for the initial listing, of course. There are ongoing expenses once companies are trading, such as sustaining fees and additional listing fees, plus the costs associated with filing regular reports.

How do you trade on the TSXV?

Investors can trade on the TSXV the way they would trade stocks on any exchange. This means they can use a stock broker or an individual investment account to buy and sell shares of TSXV-listed companies during the exchange’s trading hours.

Article by Dean Belder; FAQs by Lauren Kelly.

Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.

Securities Disclosure: I, Lauren Kelly, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com

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Economy

Stock Futures Lower after S&P 500 futures ticked down 0.18%

Economy

Stock futures are trading slightly lower Monday morning as investors gear up for the final month of 2024. S&P 500 futures slipped 0.18%, alongside declines in Dow Jones Industrial Average futures and Nasdaq 100 futures, which dropped 0.13% and 0.17%, respectively. The market’s focus is shifting to upcoming economic data, particularly reports on manufacturing and construction spending, ahead of this week’s key labor data releases.

November was a standout month for equities, with the S&P 500 futures rallying to reflect the index’s best monthly performance of the year. Both the S&P 500 and Dow Jones Industrial Average achieved all-time highs during Friday’s shortened trading session, with the Dow briefly surpassing 45,000. Small-cap stocks also saw robust gains, with the Russell 2000 index surging over 10% in November, buoyed by optimism around potential tax cuts.

As trading kicks off in December, investors are keeping a close eye on geopolitical developments in Europe, where France’s CAC 40 index dropped 0.77% amid political concerns, while Germany’s DAX and the U.K.’s FTSE 100 showed smaller declines.

S&P 500 futures will likely continue to act as a key barometer for market sentiment, particularly as traders assess the impact of upcoming economic data and global market developments.

S&P 500 Index Chart Analysis

This 15-minute chart of the S&P 500 Index shows a recent trend where the index attempted to break above the resistance level near 6,044.17 but retraced slightly to close at 6,032.39, reflecting a minor decline of 0.03% in the session. The candlestick pattern indicates some indecisiveness after a steady upward momentum seen earlier in the day.

On the RSI (Relative Strength Index) indicator, the value sits at 62.07, having declined from the overbought zone above 70 earlier. This suggests that the bullish momentum might be cooling off, and traders could anticipate a short-term consolidation or slight pullback. However, with RSI above 50, the overall trend remains positive, favoring buyers.

The index’s recent low of 5,944.36 marks a key support level, while the high at 6,044.17 could act as resistance. If the price sustains above the 6,020 level and RSI stabilizes without breaking below 50, the index could attempt another rally. Conversely, a drop below 6,020 could indicate a bearish shift.

In conclusion, the index displays potential for continued gains, but traders should watch RSI levels and price action near the support and resistance zones for confirmation.

The post Stock Futures Lower after S&P 500 futures ticked down 0.18% appeared first on FinanceBrokerage.

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Economy

S&P 500 climbed 0.3%, and Nasdaq-100 futures jumped 0.7%

Economy

Stock futures climbed on Wednesday, driven by strong performances from Salesforce and Marvell Technology, following upbeat quarterly earnings. Futures tied to the Dow Jones Industrial Average rose by 215 points (0.5%), while S&P 500 futures gained 0.3%, and Nasdaq-100 futures advanced by 0.7%.

Salesforce surged 12% after reporting fiscal third-quarter revenue that exceeded expectations, showcasing robust demand in the enterprise software sector. Meanwhile, chipmaker Marvell jumped 14% after surpassing earnings estimates and providing optimistic fourth-quarter guidance, indicating resilience in the semiconductor industry.

This movement follows a mixed session on Wall Street, where the S&P 500 and Nasdaq closed with small gains, while the Dow dipped slightly. The broader market has experienced a modest start to December, contrasting with November’s robust rally, but analysts anticipate a resurgence in momentum. LPL Financial’s George Smith pointed out that December historically sees strong market performance, particularly in the latter half of the month.

However, economic data introduced some caution. ADP’s report revealed that private payrolls grew by just 146,000 in November, missing estimates of 163,000. This signals potential softness in the labor market, with investors now awaiting Friday’s November jobs report for further clarity.

S&P 500 Index Chart Analysis

Based on the provided stock chart, which appears to be a 15-minute candlestick chart for the S&P 500 Index, here’s a brief analysis:

The chart shows a clear upward trend, with higher highs and higher lows indicating bullish momentum over the analyzed period. The index has steadily climbed from a low of approximately 5,855 to a recent high of 6,053.58, suggesting strong buying interest.

Key resistance is observed near 6,050-6,053 levels, as the price has struggled to break above this zone in the most recent sessions. If the index breaches this level with strong volume, it could lead to further upward movement. Conversely, failure to break out may lead to a pullback, with potential support around the 6,000 psychological level and 5,980, where consolidation occurred previously.

The candlestick patterns show relatively small wicks, indicating limited volatility, which could imply steady market confidence. However, the bullish rally could be overextended, warranting caution for traders, especially if any negative catalysts emerge.

In summary, the short-term trend is bullish, but traders should monitor resistance levels and volume for signs of a breakout or reversal. It’s also essential to watch broader market factors, as indices are often influenced by macroeconomic data and sentiment.

The post S&P 500 climbed 0.3%, and Nasdaq-100 futures jumped 0.7% appeared first on FinanceBrokerage.

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Stocks

Three RRGs to Keep You on Track

Stocks

The Yield Curve

The RRG above shows the rotations of the various maturities on the US-Yield Curve.

What we see at the moment is that the shorter maturities like BIL, SHY, and IEI are in relative uptrends against GOVT which means that the accompanying yields are being pushed lower.

The longer maturities, all inside the lagging quadrant, are in opposite moves and their yields are being pushed higher.

The result of such a rotation is a so-called “steepening” of the yield curve.

This chart shows the 10-2 yield curve. 10-year yield minus 2-year yield. In a normal situation, longer-dated maturities carry a higher yield than shorter-dated maturities. For almost 2.5 years this was not the case in the US. The negative values in the chart above indicate an “inverted” yield curve. This has happened a few times in the past but it is considered non-normal.

The recent rise of the 10-2 difference above 0 indicates a return to normal for the US yield curve.

Another way of showing the move of the yield curve is by using the Dynamic Yield Curve tool on the site. Here are three snapshots of the YC move since mid-2022.

This visualization shows the love of the entire curve. It not only shows the steepening vs flattening move but also the rise of the total curve of around 2% from just above 2% to over 4.5% currently.

The Relative Rotation Graph showing the rotations of the various maturities will help investors to keep track of the steepening/flattening move.

The US Dollar

The RRG for the G10 currencies, using the USD as the benchmark, shows a picture that could not be more clear.

The USD is the strongest currency at the moment.

All currencies in this group are, moving further, inside the lagging quadrant, indicating downtrends against the USD which is the center of the RRG.

This is a pretty massive move showing the strength of the USD against all other currencies.

On the EUR/USD chart, we can see a test of a major support level of around 1.03.

Once that support breaks, the way down is wide open towards the 0.96 area where the market bottomed out in 2022.

On the flip side. When support holds and EUR/USD can take out 1.06 we will have a completed double bottom targeting the upper boundary of the current range.

Looking at the $USD index chart, which is the USD expressed against a basket of currencies, we see that an upward break has already taken place. Taking this as a lead suggests that the odds are tilted in favor of a downward break in EUR/USD.

Sectors and SPY

Despite the big drop earlier this week, the sector rotation on the weekly RRG has not drastically changed (yet). So far the strength for XLC and XLY remains present. Only XLF has rolled over but remains inside the leading quadrant.

A similar observation can be made on the daily version of this chart.

On the weekly chart of SPY, the price has dropped back to a double support area around 585 where the rising support line meets horizontal support coming off the October high.

So far this all remains within “normal behavior” for an uptrend.

When SPY breaks that double support level and leaves the channel a re-assessment of the situation is needed.

#StayAlert and have a great weekend — Julius

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Stocks

Navigating the Indecisive SPY: What Investors Should Know

Stocks

When running my StockCharts Technical Rank (SCTR) scan on Thursday, I was a little surprised to find that 75 exchange-traded funds (ETFs) and large-cap stocks made the cut, especially after Wednesday’s selloff. It was a little ray of hope.

A quick sweep of the list didn’t reveal a particular sector or asset class to be dominant. The stocks and ETFs represented a broad segment of the stock market.

After going through the list, one security that caught my eye was the SPDR S&P 500 ETF (SPY), which closely follows the S&P 500 ($SPX). After the 2.98% drop in the S&P 500 on Wednesday, is SPY still technically strong? Let’s look at the daily SPY chart (see below).

FIGURE 1. DAILY CHART OF SPY ETF. The last two bars in the chart show that SPY is wavering. It’s not breaking below the mid-November lows, yet it doesn’t seem to want to move higher. It is trading below its 50-day moving average, the RSI is indicating slowing momentum, and the S&P 500 Bullish Percent Index is below 50. Chart source: StockCharts.com. For educational purposes.

Since mid-August, the SCTR (pronounced s-c-o-o-t-e-r) score has been hovering between the 70 and 90 levels. It’s now almost at 80. On Thursday, the ETF’s price closed at around the same level as Wednesday’s and is below its 50-day simple moving average (SMA). The relative strength index (RSI) is getting close to its oversold level.

The bottom line is that even though the SPY has a SCTR score of 79, and it hasn’t broken below the mid-November low, the RSI indicates momentum is weak, and the S&P 500 Bullish Percent Index ($BPSPX) is at around 41%, i.e., leaning toward bearishness. 

So, after a selloff like we just had, does it make sense to consider adding long SPY positions at this level? At the moment, the SPY is acting indecisive, but at some point, it’ll have to make a directional up or down move. A reversal with strong follow-through would be a signal to go long. The indicators displayed in the chart of SPY should support the reversal. If, on the other hand, SPY breaks below the mid-November low and the SCTR score falls below the 76 threshold, it would be a signal to unwind some positions. 

This is one chart to monitor as we wind down the year. We’ll see if Santa comes through next week!

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

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Investing

5 Best-performing Canadian Nickel Stocks of 2024

Investing

After trending down in 2023, nickel prices climbed to a 10 month high in late May of this year. However, they’ve since pulled back to four-year lows. While this environment has been tough for nickel companies, some stocks are still thriving.

Supply is expected to outflank demand over the short term, but the longer-term outlook for the metal is strong. Demand from the electric vehicle (EV) industry is one reason nickel’s outlook looks bright further into the future.

Battery nickel demand is poised to triple by 2030, according to Benchmark. “Mid and high level performance EVs will be the primary driver of battery nickel demand growth in the coming years, particularly in Western markets,” said Jorge Uzcategui, senior nickel analyst at Benchmark. “There will be growth in China, but it won’t be as pronounced as in ex-China markets.”

As for Canada, nickel is listed as a top priority in the government’s Critical Minerals Strategy. The country is the world’s fifth largest producer of nickel, with much of its production coming from mines in Ontario’s Sudbury Basin, including Vale’s (NYSE:VALE) Sudbury operation and Glencore’s (LSE:GLEN,OTC Pink:GLCNF) Sudbury Integrated Nickel Operations.

In February, Canada Nickel Company (TSXV:CNC,OTCQX:CNIKF) announced its subsidiary NetZero Metals is planning to develop a US$1 billion nickel-processing plant in Ontario that will become North America’s largest once complete.

How have Canadian nickel stocks performed in 2024? Below are the top nickel stocks in Canada on the TSXV and CSE by share price performance so far this year. TSX stocks were considered, but didn’t make the cut.

All year-to-date and share price data was obtained on December 13, 2024, using TradingView’s stock screener. The top nickel stocks in Canada listed had market caps above C$10 million at that time.

1. Class 1 Nickel and Technologies (CSE:NICO)

Company Profile

Year-to-date gain: 533.33 percent
Market cap: C$35.9 million
Share price: C$0.19

Class 1 Nickel and Technologies’ flagship property is its Alexo-Dundonald nickel project near Timmins, Ontario. The past-producing asset hosts four nickel sulfide deposits. The company’s pipeline also includes the past-producing Somanike nickel-copper project near Val-d’Or, Québec, and the River Valley platinum group metals (PGMs) project near Sudbury, Ontario.

Class 1 Nickel released resource estimate updates for the Alexo South and Alexo North deposits in April and May of this year, respectively. The company said it expects to start work on a preliminary economic assessment for Alexo-Dundonald in the near term as part of its plan to bring the asset back into production.

On October 3, Class 1 Nickel put out an updated resource estimate for the Dundonald South nickel deposit. In the indicated category, the company reported a 781 percent increase in metric tons of ore and a 474 percent increase in pounds of nickel.

The Canadian nickel exploration company’s share price started off the year at C$0.06, and began climbing in April to reach a year-to-date high of C$0.40 on November 18.

2. Power Nickel (TSXV:PNPN)

Company Profile

Year-to-date gain: 318.18 percent
Market cap: C$187.23 million
Share price: C$0.92

Power Nickel is developing its 80 percent owned Nisk polymetallic property in Québec, which hosts nickel, copper, platinum and palladium mineralization. According to the company, it plans to create Canada’s first carbon-neutral nickel mine. The polymetallic nature of the project is a plus for the economic case for future nickel production in a low price environment.

This ongoing work has generated positive news flow for the company in 2024. After starting the year at C$0.24, Power Nickel began gaining in mid-April following two key announcements. First, the company released drill results from the newly discovered Lion zone 5 kilometers northeast of the main Nisk deposit. Shortly after, it announced the completion of its option to earn an 80 percent stake in Nisk from Critical Elements Lithium (TSXV:CRE,OTCQX:CRECF).

Power Nickel’s share price jumped more than 15 percent on May 10 to reach C$0.64 following news that drilling continued to expand the high-grade, near-surface Lion discovery, with notable assays including 14.42 meters at 0.59 grams per metric ton (g/t) gold, 69.14 g/t silver, 8.17 percent copper, 6.25 g/t palladium, 8.44 g/t platinum and 0.58 percent nickel.

In June, Power Nickel commenced an 8,000 meter summer drill program at Nisk, and closed a flow-through offering for gross proceeds of over C$20 million. Some of the biggest names in mining — Robert Friedland and Rob McEwen — participated.

The company’s excellent news flow continued into the fourth quarter with a series of stellar drill results from its Nisk winter drill program, including significant intersections as shared in its October 3, October 28 and November 11 news releases. Additionally, on December 5, Power Nickel announced it was executing a spinout of its interest in the Golden Ivan property in Chile into a wholly owned subsidiary Chilean Metals.

Power Nickel continued to climb before peaking at a year-to-date high of C$0.96 on December 12. On that same day, the company released another set of positive assay results from its work at Nisk.

3. Magna Mining (TSXV:NICU)

Company Profile

Year-to-date gain: 234.15 percent
Market cap: C$214.48 million
Share price: C$1.37

Magna Mining is a base metal exploration and development company based in Sudbury, Ontario. The company’s flagship assets are the Shakespeare Mine and the Crean Hill project. Shakespeare is a past-producing, nickel-copper-platinum group mine with major permits in place. The current deposit at Shakespeare hosts an NI 43-101 indicated open pit resource of 14.4 million MT. Crean Hill is a past producing nickel, copper and PGM mine.

In March, Magna announced the signing of a definitive off-take agreement with Vale Base Metals wholly-owned subsidiary Vale Canada for the advanced exploration portion of the Crean Hill project. A few months later, in June, it inked a toll milling agreement with Glencore Canada for the surface bulk sample of the 109 Footwall Zone at Crean Hill.

The company entered into a definitive share purchase agreement with a subsidiary of KGHM Polska Miedz (FWB:KGHA) to acquire a portfolio of base metals assets located in the Sudbury Basin, including the producing McCreedy West copper-nickel mine. In November, Magna completed an updated preliminary economic assessment at Crean Hill.

Magna Mining’s share price started off the year at C$0.57, and gradually climbing to double its value by September 13. It reached a year-to-date high of C$1.67 on December 4.

4. Tartisan Nickel (CSE:TN)

Company Profile

Year-to-date gain: 108.7 percent
Market cap: C$27.19 million
Share price: C$0.24

Tartisan Nickel s a Canadian battery metals exploration and development company focuses on developing the Kenbridge nickel-copper-cobalt project located in Northwestern Ontario, Canada.

Tartisan acquired additional exploration claims for the Kenbridge project in mid-May. In November, the company closed C$1.5 million in flow-through financing with proceeds primarily going to fund the exploration and development of the project.

Shares in Tartisan Nickel fluctuated significantly in 2024. The company kicked off the year at C$0.19 before falling to a low of C$0.10 on March 12. However, its share price climbed rapidly in May to reach a year-to-date high of C$0.26 on May 16. Although shares fell as low as C$0.12 in late June, its value had doubled back up to C$0.24 on December 13.

5. EV Nickel (TSXV:EVNI)

Company Profile

Year-to-date gain: 70.83 percent
Market cap: C$38.41 million
Share price: C$0.41

EV Nickel’s primary project is the 30,000 hectare Shaw Dome asset, which is situated near Timmins, Ontario. The property includes the high-grade W4 deposit, which has a resource of 2 million metric tons at 0.98 percent nickel for 43.3 million pounds of Class 1 nickel across the measured, indicated and inferred categories.

Shaw Dome also holds the large-scale CarLang A zone, which has a resource of 1 billion metric tons at 0.24 percent nickel for 5.3 billion pounds of Class 1 nickel across the indicated and inferred categories.

EV Nickel is working on integrating carbon capture and storage technology for large-scale clean nickel production, and has procured funding from the Canadian government and Ontario’s provincial government. In late 2023, the company announced it was moving its carbon capture research and development to the pilot plant stage.

The company’s news so far in 2024 includes the closure of a flow-through financing in March that ultimately saw EV Nickel raise C$5.12 million to fund the development of its high-grade, large-scale nickel resources.

In April, EV Nickel launched a 2024 exploration program that is aimed at advancing the CarLang trend and exploring other nickel targets. The most recent news out of the program came in early September with the announcement that diamond drilling at the Langmuir #2 high-priority nickel target had confirmed high-grade nickel, with intercepts such as 18.5 meters grading 1.07 percent nickel, 7.5 meters grading 1.67 percent nickel, 2 meters grading 3.27 percent nickel and 1 meter grading 5.11 percent nickel. EV Nickel described the results as ‘very encouraging.’

The Canadian nickel exploration company’s share price started off the year at C$0.30 before steadily climbing to reach a year-to-date high of C$0.79 on May 17.

FAQs for nickel investing

How to invest in nickel?

There are a variety of ways to invest in nickel, but stocks and exchange-traded products are the most common. Nickel-focused companies can be found globally on various exchanges, and through the use of a broker or a service such as an app, investors can purchase companies and products that match their investing outlook.

Before buying a nickel stock, potential investors should take time to research the companies they’re considering; they should also decide how many shares will be purchased, and what price they are willing to pay. With many options on the market, it’s critical to complete due diligence before making any investment decisions.

Nickel stocks like those mentioned above could be a good option for investors interested in the space. Experienced investors can also look at nickel futures.

What is nickel used for?

Nickel has a variety of applications. Its main use is an alloy material for products such as stainless steel, and it is also used for plating metals to reduce corrosion. It is used in coins as well, such as the 5 cent nickel in the US and Canada; the US nickel is made up of 25 percent nickel and 75 percent copper, while Canada’s nickel has nickel plating that makes up 2 percent of its composition.

Nickel’s up-and-coming use is in electric vehicles as a component of certain lithium-ion battery compositions, and it has gotten extra attention because of that purpose.

Where is nickel mined?

The world’s top nickel-producing countries are primarily in Asia: Indonesia, the Philippines and New Caledonia make up the top three. Rounding out the top five are Russia and Canada. Indonesia’s production stands far ahead of the rest of the pack, with 2023 output of 1.8 million metric tons compared to the Philippines’ 400,000 metric tons and New Caledonia’s 230,000 metric tons.

Significant nickel miners include Norilsk Nickel (OTC Pink:NILSY,MCX:GMKN), Nickel Asia, BHP Group (NYSE:BHP,ASX:BHP,LSE:BHP) and Glencore (LSE:GLEN,OTC Pink:GLCNF).

Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com

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Completion of Tranche 1 of the Placement

Investing

Cyprium Metals Limited (ASX: CYM, OTC: CYPMF) (Cyprium or the Company) is pleased to announce the successful completion of Tranche 1 of the two-tranche placement to raise in aggregate A$13.5 million (before costs) via the issue of a total of 483,203,140 fully paid ordinary shares in the Company (Placement Shares) at an issue price of A$0.028 per Share, as announced by the Company on 13 December 2024 (Placement).

Highlights:

  • Tranche 1 of the Placement raised A$5.2 million (before costs).
  • Completion of Tranche 2 of the Placement to raise an additional A$8.3 million is subject to shareholder approval at an extraordinary meeting to be held in January 2025.
  • Cyprium intends to undertake a retail entitlement offer to existing eligible shareholders on the same terms as the Placement.

Pursuant to the terms of the Placement, subscribers were offered 1 free-attaching unlisted option for every 2 Placement Shares subscribed for, with an exercise price of A$0.042 per option and expiry date of 31 December 2027 (Placement Options).

Under Tranche 1 of the Placement, the Company confirms that it has today issued:

  • 185,714,285 Placement Shares; and
  • 92,857,143 Placement Options.

Tranche 2 of the Placement, comprising 297,488,855 Placement Shares and 148,744,427 Placement Options will be issued subject to shareholder approval which will be sought at a meeting of the Company’s shareholders in January 2025. Shareholder approval is also being sought for the issue of 20,000,000 options on the same terms as the Placement Options to the cornerstone investor of the Placement.

Proceeds of the Placement will be used as follows:

  • Nifty site costs;
  • Permit support and DFS preparation and costs;
  • Tenement maintenance and geology work;
  • Working capital and costs of the Placement.

Canaccord Genuity acted as Lead Manager to the Placement.

Click here for the full ASX Release

This post appeared first on investingnews.com

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Economy

Stock Futures Lower after S&P 500 futures ticked down 0.18%

Economy

Stock futures are trading slightly lower Monday morning as investors gear up for the final month of 2024. S&P 500 futures slipped 0.18%, alongside declines in Dow Jones Industrial Average futures and Nasdaq 100 futures, which dropped 0.13% and 0.17%, respectively. The market’s focus is shifting to upcoming economic data, particularly reports on manufacturing and construction spending, ahead of this week’s key labor data releases.

November was a standout month for equities, with the S&P 500 futures rallying to reflect the index’s best monthly performance of the year. Both the S&P 500 and Dow Jones Industrial Average achieved all-time highs during Friday’s shortened trading session, with the Dow briefly surpassing 45,000. Small-cap stocks also saw robust gains, with the Russell 2000 index surging over 10% in November, buoyed by optimism around potential tax cuts.

As trading kicks off in December, investors are keeping a close eye on geopolitical developments in Europe, where France’s CAC 40 index dropped 0.77% amid political concerns, while Germany’s DAX and the U.K.’s FTSE 100 showed smaller declines.

S&P 500 futures will likely continue to act as a key barometer for market sentiment, particularly as traders assess the impact of upcoming economic data and global market developments.

S&P 500 Index Chart Analysis

This 15-minute chart of the S&P 500 Index shows a recent trend where the index attempted to break above the resistance level near 6,044.17 but retraced slightly to close at 6,032.39, reflecting a minor decline of 0.03% in the session. The candlestick pattern indicates some indecisiveness after a steady upward momentum seen earlier in the day.

On the RSI (Relative Strength Index) indicator, the value sits at 62.07, having declined from the overbought zone above 70 earlier. This suggests that the bullish momentum might be cooling off, and traders could anticipate a short-term consolidation or slight pullback. However, with RSI above 50, the overall trend remains positive, favoring buyers.

The index’s recent low of 5,944.36 marks a key support level, while the high at 6,044.17 could act as resistance. If the price sustains above the 6,020 level and RSI stabilizes without breaking below 50, the index could attempt another rally. Conversely, a drop below 6,020 could indicate a bearish shift.

In conclusion, the index displays potential for continued gains, but traders should watch RSI levels and price action near the support and resistance zones for confirmation.

The post Stock Futures Lower after S&P 500 futures ticked down 0.18% appeared first on FinanceBrokerage.

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