“Strange Bedfellows: Dow Jones and the Precious Metals”
By Joshua Enomoto, FutureMoneyTrends.com Contributor
*Opportunity Alert* Why This Gold Junior Could More than Double in the Next 120 Days!*
First off, this is the real deal, Canarc Resource Corp is founded and led by Bradford Cooke, the founder and current CEO of Endeavour Silver who trades on the NYSE with a $1 billion market cap.
Why do we think it can more than double in the next 120 days? In their most recent PR, it focused mainly on a letter of intent regarding a private placement deal, however, if anyone was to read the entire PR (most don’t) they would have seen something incredibly bullish for this 14 cent junior gold.
The company has agreed to a 120 day period to negotiate with the private placement investor an option to earn up to a 51% interest in their New Polaris project for a total investment in exploration and development totaling $30 million. The value and opportunity in this going through is that Canarc Resource Corp currently has a market cap of just 13 million, see the price valuation problem? It is possible that in the next 120 days, Canarc has $30 million cash, a joint venture partner, and is still only worth $13 million, not likely… Not likely if this closes, Canarc should see a massive increase in their share price almost over night!
EPIC Opportunity for FutureMoneyTrends.com Members
We believe Canarc Resource Corp could potentially be not only our biggest winner for 2012, but our biggest winner for years to come.
THIS IS THE REAL DEAL!!! Please see our Canarc Resource Corp Profile below.
Company: Canarc Resource Corp.
Symbol: TSX: CCM & OTC-BB: CRCUF
PPS: $0.15 CRCUF, $0.14 CCM
Canarc Resource Corp trades on the senior exchange in Canada under CCM, however, since the vast majority of our members live in the United States, we will be referring to Canarc Resource Corp using their American symbol CRCUF. Please note it makes no difference in how a person holds the stock or what exchange someone buys it from.
CRCUF is a growth-oriented gold exploration and mining company focused on the discovery and development of gold deposits in North America.
CRCUF’s core asset is the 100% owned, past producing, 1.1 million oz (NI 43-101) New Polaris Gold Mine project located in north-western British Columbia. New Polaris is now poised for the development of a 72,000 oz per year, high-grade, underground gold mine.
Potential Joint Venture: When we met with Bradford Cooke he said that getting a joint venture done was at the top of his priority list so that he could then focus on their 2 other projects as well as possibly accumulating more gold projects.
Bradford Cooke is currently the CEO of both CRCUF and Endeavour Silver which trades on the NYSE for around 10 bucks with a $1 billion dollar market cap. Bradford is a geologist with 36 years of experience in the mining industry, specializing in the discovery and development of mineral deposits. Bradford has laid out a very aggressive plan for CRCUF this year and he has our highest confidence.
CRCUF also has 2 other projects that Bradford refers to as “potential elephants.”
Tay-LP Property in South Central Yukon, Canada
Favorable Geology – Similar to other recent gold discoveries in the Tintina Gold Belt by Atac Resources and Yukon Nevada Gold.
Multiple Targets – Historic drilling highlights include 3.6 gpt/24.3m, 1.3 gpt/31.8, and 4.0gpt/10.5m
Strong Potential – Significant opportunities to expand known gold zones and make new gold discoveries.
Windfall Hills Property in Central British Columbia, Canada
Large Property – 3800 Hectares
Good Location: 65kms south of Burns Lake, BC and 90 kms northwest of New Gold’s Blackwater 7.8 million ounce discovery
Existing Data – In 2011 CRCUF defined multi-element geochemical anomaly (Au-Ag-As-Sb) and extended trend to northwest.
For more information, please visit Canarc.net
Future Money Trends LLC | 417-B W. Foothill Blvd. #144 | Glendora, CA 91741
FutureMoneyTrends.com (the “Website”) is owned by Future Money Trends, LLC. The Website, its owners, their affiliates, directors, officers, employees and agents are hereafter collectively referred to as “we”, “our” or “us” or “FMT”.
We are publishers of publicly disseminated information on behalf of our clients, most of whom are issuers or non-affiliate third party shareholders of various issuers; however, we may receive securities from affiliates of an issuer. We receive either monetary or securities compensation for our services and are required under Section 17(b) of the Securities Act of 1933, as amended (“Securities Act”), to specifically disclose our compensation.
Separate and apart form our monetary or securities compensation, we may buy and sell the Issuer’s securities that we are contracted to provide advertising services for at any time, including before, during or after we publish information about such Issuer. These activities may lead to various risks (disclosed below) associated with our trading in the Issuer’s securities.
[su_spoiler title=”We do not act in the capacity of any nor should you construe our activities as involving any of the following.”]• Providing investment advice; • Acting in the capacity of an investment adviser or engaging in activities that would be deemed to be providing investment advice that requires registration either at the federal or state level; • Broker-dealer activities; • Stock picker; • Securities trading expert; • Securities analyst; • Financial planner or financial planning; • Providing stock recommendations; • Providing advice about buy and sell or hold recommendations as to specific securities; or • Offer or sale of securities or solicitation to purchase securities;[/su_spoiler]
You should not interpret any of our publications as investment advice. If you are seeking investment advice you should consult with an registered investment adviser, registered stockbroker, or other financial professional of your choosing.
Our activities involve actual conflicts of interest, since we receive monetary or securities compensation in the very securities we are promoting and shortly after we receive the monetary compensation we promote the securities or after we receive the securities, we sell the securities during our promotional activities or thereafter.
The non-affiliate third party shareholder from which we receive compensation also has an actual conflict of interest since he or she is paying us securities compensation for promotion services and such non-affiliate third party shareholder may sell other shares he or she holds while we are promoting the issuer that issues the stock that the third party shareholder holds.
Many of the securities we profile are considered penny stocks. Penny stocks inherently involve high risk and price volatility. You may lose your entire investment in any penny stock that you invest in. You should be acutely aware of the following information and risks inherent in any penny stock investment that you may make, including any issuer profiled on our websites or otherwise:
• We receive monetary or securities compensation from persons that claim they are a non-affiliate shareholder (“NAS”) or an issuer; however, we conduct no due diligence whatsoever to determine whether in fact they are a non-affiliate;
• We may receive free trading shares from the non-affiliates, which we may sell at any time, including as soon as we deposit such shares in our securities accounts, during our promotion of the issuer’s stock (that the NAS owns), after our promotion, or at any time;
• There is an inherent conflict of interest between our information dissemination services involving various issuers and our receipt of compensation from those same issuers;
• We may buy and sell securities in the securities that we provide information dissemination services, which may cause: a) significant volatility in the issuer’s stock; (b) price declines from our selling activities; (c) permit us to make substantial profits while we are disseminating profiles or information about the issuer, yet may result in a diminished value to the stock for investors;
• We conduct little or no due diligence on the profiles we receive from the non-affiliate shareholders nor do we conduct due diligence on any other information we disseminate to the public;
• We conduct no diligence on the press releases we receive from a non-affiliate shareholder, an issuer, or from a publicly available source;
• Penny stocks are subject to the SEC’s penny stock rules and subject broker-dealers to customer suitability rules and other requirements, which may lead to low volume in the securities and/or difficulties in selling the shares;
• Many penny stocks are thinly traded or have low trading volume, which may lead to difficulties in selling your securities and extreme price volatility;
• Many of the penny stocks we profile or provide information about are subject to intense competition, extreme regulatory oversight and inadequate financing to pursue their operational plan;
• The issuer profiles and information we provide represent only a small or even infinitesimal amount of information regarding the issuer and is insufficient to formulate an investment decision; as such, that information should only be a starting point from which you conduct an in-depth investigation of the issuer from available public sources, such as www.sec.gov, www otcmarkets.com, www.sec.gov, yahoofinance.com, www.google.com and other available public sources as well as consulting with your financial professional, investment adviser, registered representative with a registered securities broker-dealer;
• We urge you to conduct an in-depth investigation of the issuer from the above or other available sources, especially because we only present positive information, which is an insufficient basis to invest in any stock, yet alone a penny stock; accordingly, you should proceed with such investigation to determine, among other things, information pertaining to the issuer’s financial condition, operations, business model, and risks involved in the issuer’s business;
• The issuers we profile may have negative signs on the otcmarkets.com website (i.e. Stop Sign, No Information, Limited Information, Caveat Emptor), which you should determine from entering the symbol of the stock profiled into the otcmarkets.com website;
• You should determine whether the issuer we profile or provide information about is a development stage company, which is subject to the risks of a development stage company in a similar such business, including difficulties in obtaining financing for operations and future growth;
• You should conduct an investigation of the innumerable risks that are inherent or present in the business plan of almost any penny stock issuer; therefore, do not use our profiles or any information contained in our website or profiles as the sole determination of making an investment decision;
• We only present positive information regarding an issuer; therefore, you should conduct an in-depth investigation of any possible negative factors regarding such issuer;
• You should accept our information in an “as is” state; in other words, your use of the information is at your own risk and such information may change at any time and it is not based upon any verification or due diligence of the statements made;
• We state that many of the stocks we profile are consistent with the future economic trends we discuss; however, future economic trends or analysis has its own limitations, including: (a) due to the complexity of economic analysis as well as the individual financial and operational characteristics of an individual issuer, such economic trends or predictions may amount to nothing more than speculation; (b) consumers, producers, investors, borrowers, lenders and government may react in unforeseen ways and be affected by behavioral biases; (c) human and social factors may outweigh future economic trends and predictions that we state may or will occur; (d) clear cut economic predictions have their limitations in that they do not account for the fundamental uncertainty in economic life, as well as ordinary life; (e) economic trends may be disrupted by sudden jumps, disruptions or other factors that are not accounted for in such economic trends analysis; in other words, past or present data predicting future economic trends may become irrelevant in light of fully new circumstances and situations in which uncertainty becomes reality rather than of predictive economic quality; or (f) if the trends involves a single result, it ignores all other scenarios that may be crucial to make a decision in the event of various contingencies;
• The information we disseminate about issuers contain forward looking statements, i.e. statements or discussions that constitute predictions, expectations, beliefs, plans, estimates, projections as indicated by such words as “expects”, “will”, “anticipates”, “estimates; therefore, you should proceed with extreme caution in relying upon such statements and conduct a full investigation into any such forward looking statements;
• Forward looking statements are limited to the time period in which they are made and we do not undertake to update forward looking statements that may change at any time; and
• We make statements in our profiles that an issuer’s stock price has increased over a certain period of time since our publication of information about an issuer because such stock price reflects only an arbitrary period of time, it is of no predictive or analytical quality and you should not use any such information in your analysis of any such issuer.
FutureMoneyTrends.com has received twenty-eight thousand dollars by Canarc Resource Corp for Investor Relations services and two hundred and fifty thousand stock options at an exercised price of ten cents per share. The options have a vesting schedule of sixty-two thousand five hundred for each of the following dates: March 23rd, June 23rd, September 23rd, and December 23rd. FutureMoneyTrends.com expects to receive an additional thirty thousand dollars for continued investor relations services. We may buy and sell common stock shares of Canarc Resource in the open market, including before, during or after our public dissemination of information regarding Canarc Resource. After we profiled Canarc Resource corp to or members on April second, we purchased one hundred sixty seven thousand eight hundred and eleven shares on the open market.
Never base any decision from information contained in our website, emails or Issuer profiles. Conduct your own independent in-depth investigation regarding such matters and consult with your registered investment adviser, financial consultant, attorney or other professional before proceeding with any financial decisions. The reality is that these revered assets would only effectively protect against one of these events, and certainly not both at the same time. Runaway inflation would lead to higher prices in EVERY asset class as the dollar is being devalued and would require nominally larger amounts of greenbacks to purchase an identical product before the inflation. A stock market crash, however, suggests deflation, a situation where everyone wants to sell and no one wants to buy, and while it is certainly possible that the Dow and gold could eventually share a 1:1 ratio, where one gold ounce could buy one share of the entire Dow index, the problem is, nobody knows for sure how the actual numbers will stack up. W ould it be Dow 1,000: Gold 1,000? Or Dow 6,000: Gold 6,000? Of course, in a deflation, every asset’s price is reduced as supply exceeds demand, and therefore, the value of the dollar increases.
The current market paradigm is that precious metals are acting as “risk-off” assets, meaning that investors fearful of volatility are seeking shelter in fiat currencies, namely, the US dollar. One doesn’t have to personally “believe” in this trend, but rather acknowledge that it exists and look for trading opportunities as a result.
Let’s start off by looking at a 3-month snapshot of the Dow Jones Industrial Average:
Generally speaking, the Dow has been trading steadily upwards above its 50 day moving average, with much of the bullishness being attributed to the markets pricing in a potential QE3. That potentiality became a reality on September 13th, and since that fateful day, investors on Wall Street have been trying to push the index past the 13,600 resistance level, but failed repeatedly. Finally, on October 19th, the Dow dropped to 13,350, or a 2% drop from its quantitatively-induced high. The doji star the day prior proved ominous. As you may know, doji stars occur when the opening and closing price of a trading session are identical or close to identical. In and of themselves, they reveal very little aside from the fact that there was ultimately very little enthusiasm by either the bulls or the bears to push the price one way or the other; however, in this particular context, it revealed hesitation in moving forward with the prevailing trend. Another big drop on the 23rd confirmed that the bears established near-term control of the sector, with their eyes firmly set on the 200 DMA, sitting just under the 13,000 mark.
Interestingly, if we take a look at gold’s 3-month chart, we see a very similar pattern:
The yellow metal started to rally around mid-August, after a half-year of frustrating consolidation from February’s highs. The price continued to surge higher based on speculation of central bank money printing that eventually was realized through major announcements by the European Central Bank, the Federal Reserve, and the Bank of Japan. Since all commodities are priced in US dollars, the announcement of QE3 was the biggest catalyst for gold.
Unfortunately, at least for the near-term, it has proven to be the final one. The major psychological target for the gold bulls was the 1,800 price point, but it proved elusive, with the 1,780 level instead proving strong and consistent resistance. Gold’s decline came a bit sooner than the Dow’s, as on October 5th, the metal failed to secure and hold a recent run-up. From then on, aside from a few isolated sessions, the price of Gold continued to roll downwards.
Whatever fundamental catalyst that failed to get the Dow above 13,600 clearly put a ceiling on gold’s nominal target of $1,800. Let’s get real here: the driver that got both the index and the metal up and running was speculation of QE3. And the reason they both failed earlier in the year and now is risk, specifically the Eurozone debt crisis sending scared money scrambling into the waiting arms of the dollar.
But as with any crisis, there is an opportunity, for those that are patient and have a steely resolve. Both the Dow and gold have suffered through a correction but will resume their upward trajectory. The fundamental players are the same, namely the Federal Reserve’s commitment to QE3 and low interest rates. With the economy dragging its feet, the only option, aside from universally unpopular austerity programs, would be to aggressively increase the scope of quantitative easing.
Let’s take a look at the technicals, starting with the Dow Jones:
Based on the Slow Stochastic oscillator, the current status of the Dow is extremely oversold. In fact, over the last 3 years, if you were to simply “buy” the index based on when the Stochastic was below the 20 level, 75% of the time, you would have realized an immediate profit. As the RSI is also nearing an oversold status, more often than not, the chances are good that the index will rise from here.
It’s the same story with gold:
With the yellow metal, the conditions are even better. Analyzing the same 3 year period, buying on sub-20 Stochastics would have been a good decision 80% of the time. And whether you were bullish on equities or on commodities, the simple fact is, even if you were to have bought when the Stochastics gave a “false” reading, you would eventually be in the black only a few months later.
Perhaps the best opportunity, however, is silver:
Since it tracks the price of gold 70 to 80 percent of the time, it too is poised to rise from its currently oversold status. While it is more volatile than its illustrious cousin, the current spot price of $32.10 is worth taking a look at. The bears met significant resistance trying to push the price under $32, and momentum indicators suggest that the downturn is losing steam and that a reversal could be in play shortly.
In conclusion, whether we like it or not, the Dow is currently trending parallel to the precious metals and the same fundamentals that affect the index have had a similar effect on gold. That being said, it is the Fed’s solemn pledge to prop up the economy by propping up the stock market, which means the Dow will be roomies with gold in the foreseeable future.