The 54% fall in the number of active rigs over the past year indicates a fall in exploration and production activity by upstream oil and gas companies. And aside from upstream and midstream energy companies, the falling natural gas rig count could negatively affect natural gas compression services providers including Exterran Holdings (EXH) and Exterran Partners (EXLP). This trend would probably also negatively affect Dresser-Rand Group (DRC), which provides equipment for oil and gas transportation. Drill equipment makers such as Schlumberger (SLB) and Halliburton (HAL) also usually suffer when the crude oil rig count decreases.
Middle East Floods News Service from EIN News. ... Drainage, wastewater and flood control experts to meet in Oman
China, one of the largest importers of gold and other commodities, is allowing its currency to be driven more by market forces. Prices of the yellow metal had climbed briefly the previous day, helped by a weaker dollar.
Commodities broadly have taken a hit because it suggests weakness in a big gold buyer but one theory floating is that Chinese buyers, fearing currency devaluation and swooning from China’s recent stock SHCOMP, -0.01% market volatility, are seeking a haven in gold and supporting the metal’s price.
“There are suggestions that a Chinese devaluation of the yuan will mean that Chinese investors who have suffered from the stock market blowout and now fearful of further yuan depreciation/devaluation, will opt for gold,” wrote Richard Perry, market analyst at Hantec Markets in a research note Tuesday.
Several exploration and production firms within the Energy Select Sector SPDR Fund (XLE) have RSI values of less than 30, implying that they are possibly oversold.
ETF NAME TICKER LAST TRADE INTRADAY RETURN (MKT) 3-MO RETURN (MKT) VOLUME
Direxion Daily S&P Biotech Bear 3X ETF LABD 36.45 +10.99% 0.0% 271,877
ProShares UltraShort Nasdaq Biotech BIS 27.92 +8.34% -18.3% 641,069
Direxion Daily Gold Miners Bull 3X ETF NUGT 3.34 +6.37% -29.83% 24,495,646
QuantShares US Market Neut Momentum MOM 27.68 +6.05% +3.11% 200
UBS ETRACS M Py 2xLvg DJ Intl RelEst ETN RWXL 36 +4.96% -3.83% 7
Direxion Daily Jr Gld Mnrs Bull 3X ETF JNUG 8.41 +4.86% -21.79% 3,460,081
ProShares UltraPro Short QQQ SQQQ 22.3 +4.65% -7.82% 7,633,022
PowerShares S&P SmallCap Energy ETF PSCE 20.17 +4.27% -4.11% 10,028
ProShares Ultra Silver AGQ 32.75 +4.2% -0.02% 260,725
Direxion Dly S&P Oil&Gs Ex&Prd Br 3X ETF DRIP 78 +4.19% 0.0% 9,702
ProShares Ultra Junior Miners GDJJ 9.13 +3.8% -11.2% 200
iPath® US Treasury Long Bond Bull ETN DLBL 74.14 +3.63% -3.74% 2
VelocityShares 3x Inv Natural Gas ETN DGAZ 5.76 +3.47% -3.6% 3,059,192
PureFunds™ ISE Junior Silver ETF SILJ 5.74 +3.38% -5.83% 1,258
Global X Gold Explorers ETF GLDX 8.62 +3.37% -1.01% 10,076
Bill Gross, money manager at Janus Capital Group Inc., said the global economy is “dangerously close to deflationary growth.” Once there is a “whiff of deflation, things tend to reverse and go badly,” Gross said
Time to get in ASAP!!!!!!!
Kinross has battled hard to right the ship after its disastrous US$7.1 billion deal to acquire Redback mining back in 2010. A large part of the Redback purchase has been written off and Kinross is finally standing on solid ground again.
The company reported better-than-expected Q1 results and is producing enough cash flow to easily cover its capital projects. Production is on track to meet guidance and the balance sheet is actually quite healthy. Kinross finished Q1 with more than US$1 billion in cash and cash equivalents.
Gold prices continue to linger around the $1,200 mark and the debate rages on between the bullion bulls and bears as to where the future lies. For the past five years, the bears have been right, and any bull that took a position in the miners over that time is looking at some ugly losses.
Is the downward trend finally coming to an end?
It’s true that gold’s safe-haven status has lost some of its shine in recent years, especially in the U.S., as global equity markets continue to remain resilient in the face of serious political and financial threats. At the same time the strong U.S. dollar has provided little incentive for Americans to move into gold.
The attitude in the U.S. could soon change. Greece might send Europe down a road nobody wants to go; China’s massive property bubble still hasn’t popped; and the entire Middle East is at risk of becoming one massive war zone. A bad turn in any one of these situations could set off a stampede back into gold.