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October 5, 2024

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Coming Soon: A New Era of Options Trading With OptionsPlay

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We know that successful options trading requires precise analysis and actionable options strategies. That’s why we’re excited to introduce a groundbreaking partnership between OptionsPlay and StockCharts.com—bringing you the world’s first integration of technical analysis and options screening in one powerful tool.

No more finding stocks that don’t have viable options strategies or options trades on stocks that don’t fit your technical criteria. With this new integration, every opportunity is fully optimized, ensuring your technical and options strategies are always in sync.

What to Expect From the Integration

This revolutionary integration offers traders a streamlined and efficient experience, combining StockCharts.com’s charting capabilities with OptionsPlay’s advanced options strategies.

  1. Daily Trade Ideas. Access fresh, bullish, and bearish ideas daily, ranked and sorted based on your technical and options criteria. These ideas cover trend-following and counter-trend strategies.
  2. Real-Time, Personalized Options Strategies. Get real-time options strategies for stocks in your ChartLists, tailored to your preferences for expiration dates and risk tolerance.
  3. Combined Technical Analysis and Options Trading. Access OptionsPlay’s award-winning strategy builder directly within SharpCharts, ACP, and Options Chains on StockCharts.com.

Why This Integration Matters

This integration isn’t just a feature—it’s a game-changer for traders looking for a complete solution.

  1.  Perfect Alignment. Every opportunity presented combines a strong technical setup with a viable options strategy, ensuring your trades are fully optimized.
  2. Streamlined Workflow. Conduct your entire trading process—technical analysis and options screening—all within StockCharts.com. No need to switch platforms.
  3. Boosted Confidence. Trade with greater confidence, knowing the stock and options strategies have been vetted and ranked for you.

Get Ready for the Future of Options Trading

 We’re just weeks away from launching this revolutionary tool. Stay tuned for more details and updates as we bring you the future of options trading with OptionsPlay.

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What More do the Bulls Want?

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It is a bull market for stocks. On the chart below, the S&P 500 SPDR (SPY) recently broke rim resistance of a cup-with-handle pattern and is trading near a 52-week high. The S&P 500 EW ETF (RSP) recorded a new high in late September and is leading the market since July as the bull market broadened. Moreover, over 75% of S&P 500 stocks are trading above their 200-day SMAs.

And that’s not all. As noted in our weekly reports/videos, QQQ and the Mag7 ETF (MAGS) broke out of triangle consolidations. We can also add narrow yield spreads, a dovish Fed and the Chinese bazooka to the equation. Which brings me to the question: What more do bulls want? Answer: Nothing. October is here and an election looms so we may see above average volatility. Even so, the weight of the evidence is clearly bullish for stocks. Volatility is the price of admission.

In our weekly report/video, we highlighted our top three AI stocks. Two of these broke out in late September and one remains within a bullish continuation pattern. The chart below shows Broadcom (AVGO) hitting a new high in June and trading well above the rising 200-day SMA (red line). After hitting a new high, the stock consolidated with a triangle into September. This is a consolidation within an uptrend, which makes it a bullish continuation pattern. AVGO broke out in late September and this breakout signals a continuation of the long-term uptrend.

Check out TrendInvestorPro to see the other two AI stocks, read our weekly report and get access to two invaluable reports with videos. One shows how to find bullish setups with high reward potential and low risk. The other shows how to use breadth indicators to identify capitulation, thrust signals, oversold conditions and market regime. These reports alone are worth the price of admission.

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Does the Market Have Bad Breadth?

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As a bull market reaches an exhaustion point, market breadth indicators often tend to diverge from the price action of the benchmarks. This “breadth divergence” occurs as leading names begin to falter, and initial selling drives some stocks down to new swing lows.  

Today, we’ll review three market breadth indicators, outline what tends to happen at the end of a bull phase, and describe what we’d need to see to confirm a likely market top based on historical topping phases.

New 52-Week Highs on the Decline

As I discussed with my guest Mark Newton earlier this week, one of the most effective ways to gauge a potential market top is to watch for a decline in the percent of stocks making new 52-week highs.

What will a contentious election season mean for your portfolio, and how can you position yourself as the market moves through the seasonally weakest part of the year?  Join me for a FREE live webcast on Tuesday 10/15 at 1:00pm ET called “Election 2024: Positioning Your Portfolio” and we’ll review all the charts you should follow to navigate election season and beyond!

In a bull market phase, it makes sense for more and more stocks to be achieving this feat. But as a bull market matures, fewer and fewer names are pushing higher, and this indicator tends to diverge from the price action.

At its highest level in mid-September, we observed about 20% of the S&P 500 members making a new 52-week high on the same day. By Thursday of this week, that number was down around 5-6%. So, while some stocks are still pounding higher, fewer and fewer names appear to be participating in the uptrend.

More Stocks are Breaking Their 50-day Moving Average

This next chart features two indicators based on the percent of stocks above their moving averages. The top panel represents the percent of S&P 500 members above their 200-day moving average, which I consider a decent way of measuring long-term breadth conditions.

When the S&P 500 index pulled back in April and August, this indicator remained well above the 50% level, confirming that most stocks remained in a primary uptrend despite the short-term weakness. When we instead use the 50-day moving average, shown in the bottom panel, we can see that this week the measurement dipped below 75%.

I have often found that tactical market pullbacks are marked by this indicator breaking below the 75% level, as that suggests that stocks which had been trending higher are now breaking down below this short-term measure of trend.

Watching the Bullish Percent Index for a Key Bearish Signal

Finally, we can use point & figure charts to create a breadth indicator called the Bullish Percent Index.  Over the last couple weeks, this indicator has pushed above 80%, which represents one of the highest levels in recent years.  This confirms that four out of every five S&P 500 members are showing a bullish signal on their point & figure charts.

In this situation, I like to watch for the Bullish Percent Index to dip back below 70%. That will show that some of those strong point & figure charts are starting to register sell signals, which would mean the price action has changed from bullish to bearish. For now, this indicator remains comfortably about the 70% level, but, based on historical data, that signal could signal a death knell for the bull market phase.

Market breadth indicators are so valuable as they allow investors to look “under the hood” to assess real market conditions from the hundreds of stocks that comprise our major indexes. While these readings remain largely construction for now, these charts could provide fantastic signals of a new pullback phase in October.

RR#6,

Dave

P.S. Ready to upgrade your investment process? Check out my free behavioral investing course!

David Keller, CMT

President and Chief Strategist

Sierra Alpha Research LLC

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.

The author does not have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author and do not in any way represent the views or opinions of any other person or entity.

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Stocks Soar, Energy Prices Spike: Are Geopolitical Tensions to Blame?

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After Friday’s stellar jobs report—254,000 jobs added in September vs. the Dow Jones forecast of 15,000—stocks and Treasury yields initially reacted with a big jump. The data confirms the strength of the labor market and the US economy.

Let’s not forget, though, that a devastating hurricane ripped through six states, leaving people homeless, isolated, and without power. The hurricane would have caused job losses, especially in the services sector. We’ll know more in the next jobs report. Fortunately, the US dockworkers’ strike was short-lived, so its impact may have been very light.

The Macro Picture

The stronger-than-expected September jobs report resulted in increased investor optimism. In addition to a large increase in new jobs, unemployment fell to 4.1%, and average hourly earnings are up by 0.4%.

The broader stock market indexes closed higher into the close, which is unusual price action for a Friday when too many uncertainties are lingering. The daily chart of the S&P 500 ($SPX) below shows that after hitting an all-time high on September 26, the index pulled back close to its 21-day exponential moving average (EMA). Thursday’s doji candlestick represents indecision, and Friday’s jobs report reversed the indecision to optimism.

CHART 1. S&P 500 REMAINS BULLISH. The index bounced off its 21-day EMA with expanding market breadth. The number of 52-week highs outnumbers the new 52-week lows.Chart source: StockCharts.com. For educational purposes.

Overall, the S&P 500’s trend is bullish, and market breadth is expanding, with new 52-week highs greater than new 52-week lows.

The Nasdaq Composite ($COMPQ) closed above its August high (see chart below). Market breadth, measured by different indicators than those in the chart of the S&P 500, is also expanding.

CHART 2. NASDAQ BOUNCES ABOVE AUGUST HIGH. The Nasdaq has been trading sideways since its August high. Will today’s breakout from that high have enough momentum for follow-through action? The market breadth indicators give mixed signals.Chart source: StockCharts.com. For educational purposes.

The Nasdaq Composite Bullish Percent Index (BPI) is at 55.67, indicating slight bullishness. The Nasdaq Percent of Stocks above their 200-day moving average is at 44.54, which is relatively low, but it is trending higher. The Nasdaq Advance-Decline Line is trending lower, which is a little concerning. The Nasdaq hasn’t been as strong in its recovery as the S&P 500 and the Dow Jones Industrial Average ($INDU), which again eked out a record close.

Small-cap stocks rallied the most of the indexes featured in the StockCharts Market Overview panel on Your Dashboard. After falling below the trading range it’s been in for the last month, the S&P 600 Small Cap Index ($SML) is back within the range (area between dashed blue horizontal lines).

CHART 3. SMALL-CAP STOCKS TICK HIGHER. After Thursday’s price action, small-cap stocks picked up strength and made it back to close within their trading range. Advanced outnumber has declined, and the percentage of stocks trading above their 50-day moving average is also trending higher.Chart source: StockCharts.com. For educational purposes.

The market breadth indicators in the lower panel show that market breadth for $SML is also improving. The percentage of $SML stocks trading above their 50-day moving average is trending higher, and the number of advances and volume advance percent is higher.

The bond market also reacted strongly to the jobs report. Treasury yields rose after the news broke, with the 10-year US Treasury yield closing up 3.4% at 3.98%. This supports the notion that the Fed will likely slow down the pace of rate cuts. The CME FedWatch Tool reflects the probability of a 25 basis point interest rate cut in the Fed’s November 7 meeting at 98.9%.

Another important area to watch is volatility. The Cboe Volatility Index ($VIX) pulled back on Friday, closing at 19.21. But don’t be surprised to see it tick back up. Geopolitical turbulence is still front and center, and there’s an important election one month away. Investors should tread carefully, since any event could cause a volatility spike and change the picture.

Sector Performance

Crude oil prices rose this week, mostly due to Middle East tensions. The Energy sector was a laggard in the last several months, but it has now broken out of its downward-sloping trendline, ending the week as the top-performing sector.

The daily chart of XLE clearly shows a reversal in energy prices.

CHART 4. ENERGY SELECT SECTOR SPDR (XLE) BREAKS OUT. Rising geopolitical turbulence lifts oil prices higher. The S&P Energy Sector BPI also spiked, showing bullish dominance.Chart source: StockCharts.com. For educational purposes.

The S&P Energy Sector BPI spiked higher to 68.18 putting it into bullish territory. If tensions continue to escalate in the Middle East, oil prices could rise further.

To identify the stocks in the sector, pull up the StockCharts MarketCarpet, select 5D Change from the Color By dropdown menu, and click on Energy (see image below).

ENERGY SECTOR MARKET CARPET. It’s easy to see which were the top gainers in the sector. The table on the right can be sorted in ascending or descending order. Double click on any box to see the Symbol Summary page for the ticker symbol.Image source: StockCharts.com.

The table on the right shows the top-performing stocks in the sector.

Create a ChartList of energy stocks and populate it with the stocks listed in the table. Top performers as of this writing are Diamondback Energy (FANG), Williams Cos., Inc. (WMB), APA Corporation (APA), Occidental Petroleum (OXY), and Marathon (MRO). And don’t forget Vistra Energy (VST), the top StockCharts Technical Rank stock.

Before adding the stocks to your ChartList, you may want to analyze each one more closely. Double-clicking on the box of any stock will open the Symbol Summary page for the selected symbol.

Other Areas To Consider

Metals and stocks of Chinese companies have also been rallying. Gold, silver, and copper prices saw significant rises. The iShares China Large-Cap ETF (FXI) gapped higher, hitting a new 52-week high. Our blog posts cover both topics deeply, so check out the articles.

The first trading week of October ends on a strong note. But it is October, and historically, the month tends to be volatile, especially in an election year. Plus, earnings season kicks off at the end of next week. This means there’s all the more reason to be cautious.

End-of-Week Wrap-Up

  • S&P 500 closed up 0.22% for the week, at 5751.07, Dow Jones Industrial Average up 0.09% for the week at 42,352.75; Nasdaq Composite closed up 0.10% for the week at 18,137.95
  • $VIX up 13.27% for the week, closing at 19.21
  • Best performing sector for the week: Energy
  • Worst performing sector for the week: Consumer Staples
  • Top 5 Large Cap SCTR stocks: Vistra Energy Corp. (VST); KE Holdings, Inc. (BEKE); JD.com, Inc. (JD); Applovin Corp (APP); Carvana (CVNA)

On the Radar Next Week

  • Fed speeches
  • September Consumer Price Index (CPI)
  • September Producer Price Index (PPI)
  • Earnings season kicks off with JP Morgan Chase (JPM), Wells Fargo (WFC), and Delta Airlines (DAL)

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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Stealth AI Stocks Are Taking Off in a Flat Market

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In this StockCharts TV video, Mary Ellen highlights the continuation rally in AI-related stocks while also reviewing broader market conditions. The move higher in yields as well as volatility were discussed heading into next week’s FOMC notes and inflation data.

This video originally premiered October 4, 2024. You can watch it on our dedicated page for Mary Ellen on StockCharts TV.

New videos from Mary Ellen premiere weekly on Fridays. You can view all previously recorded episodes at this link.

If you’re looking for stocks to invest in, be sure to check out the MEM Edge Report! This report gives you detailed information on the top sectors, industries and stocks so you can make informed investment decisions.

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Trillion Energy Initiates Velocity String Program

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Trillion Energy International Inc. (‘ Trillion ‘ or the ‘Company ‘) (CSE: TCF) (OTCQB: TRLEF) (Frankfurt: Z62) is pleased to announce it is gearing up SASB gas field operations with the installation of Velocity Strings (VS) at this time.

On September 30 th , 2024, after the Company reached an agreement with its partner at SASB on the technical aspects of the program, it was assigned operatorship for the conduct of this program.

The Company then was able to sign a service agreement with a snubbing provider ‘Snub Co’ to install the velocity strings. Mobilization of the snubbing unit, which is currently in Romania, has begun. The propose of the operation is to increase or stabilize production rates in producing wells, by reducing water loading.

Currently the Akcakoca-3 and South Akcakoca-2 are averaging 2.55 MMcf/d and 2.3 MMcf/over the past 30 days. The other two long reach directionally drilled wells Guluc-2 and West Akcakoca-1 were only produced intermittently due to water loading. Even still, Guluc-2 averaged 1.7 MMcf/d over the last 2 months.

Arthur Halleran CEO of Trillion stated:

‘Initially it was assumed that the VS could only be run in using a drilling rig, however, we have now convinced all a snubbing unit can accomplish this activity. This has been a giant step forward. This strategic move underscores our commitment to maximizing shareholder value through operational excellence and innovative solutions in the dynamic European energy market.’

Oil block update -The Company has continued to work to finalize a farm-in to earn a working and revenue interest in M46 and M47 oil exploration blocks within the Cudi-Gabar petroleum province, Southeastern Turkiye (the ‘Oil Blocks’). The Company initiated seismic work in 2023 on the Oil Blocks planned four exploration wells for 2024, however, such wells have not been drilled as the Company focused on its workover program at SASB.  As a result, the block license owner secured a third party to drill two wells on the Oil Blocks and gave up a 20% interest. As such, the first two wells will not be drilled by Trillion and Trillion is committed to earning an interest in the Oil Blocks subject to financing and finalizing participation terms.

About the Company

Trillion Energy International Inc is focused on oil and natural gas production for Europe and Türkiye with natural gas assets in Türkiye. The Company is 49% owner of the SASB natural gas field, a Black Sea natural gas development and a 19.6% (except three wells with 9.8%) interest in the Cendere oil field. More information may be found on www.sedar.com , and our website.

Con   tact
Arthur Halleran, Chief Executive Officer
Brian Park, Vice President of Finance
1-778-819-1585
E-mail: info@trillionenergy.com ;
Website: www.trillionenergy.com

Cautionary Statement Regarding Forward-Looking Statements

This news release may contain certain forward-looking information and statements, including without limitation, statements pertaining to the Company’s ability to obtain regulatory approval of the executive officer and director appointments. All statements included herein, other than statements of historical fact, are forward-looking information and such information involves various risks and uncertainties. Trillion does not undertake to update any forward-looking information except in accordance with applicable securities laws.

These statements are no guarantee of future performance and are subject to certain risks, uncertainties, delay, change of strategy, and assumptions that are difficult to predict and which may change over time. Accordingly, actual results and strategies could differ materially and adversely from those expressed in any forward-looking statements as a result of various factors. These factors include unforeseen securities regulatory challenges, COVID, oil and gas price fluctuations, operational and geological risks, changes in capital raising strategies, the ability of the Company to raise necessary funds for development; the outcome of commercial negotiations; changes in technical or operating conditions; the cost of extracting gas and oil may increase and be too costly so that it is uneconomic and not profitable to do so and other factors discussed from time to time in the Company’s filings on www.sedar.com, including the most recently filed Annual Report on Form 20-F and subsequent filings. For a full summary of our oil and gas reserves information for Turkey, please refer to our Forms F-1,2,3 51-101 filed on www.sedar.com, and or request a copy of our reserves report effective December 31, 2022 and updated January 31 2023.

News Provided by GlobeNewswire via QuoteMedia

This post appeared first on investingnews.com

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Enbridge to Expand Gulf of Mexico Presence with US$700 Million Pipeline Project

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Enbridge (TSX:ENB,NYSE:ENB) has announced plans to construct and operate new crude oil and natural gas pipelines in the US Gulf of Mexico to support BP’s (LSE:BP) recently sanctioned Kaskida deepwater development.

The crude oil pipeline, referred to as the Canyon Oil Pipeline System, will consist of 24-inch and 26-inch diameter pipes with a capacity of 200,000 barrels per day. It will originate from the Keathley Canyon area and transport crude oil to Shell Pipeline Company LP’s Green Canyon 19 platform.

From there, the oil will be further delivered to the Louisiana market, positioning Enbridge as a key player in transporting crude from deepwater fields to the US mainland.

In addition to the oil pipeline, Enbridge will also construct a natural gas pipeline called the Canyon Gathering System. This 12-inch pipeline will have the capacity to handle 125 million cubic feet of gas per day.

The Canyon Gathering System will connect subsea to Enbridge’s existing Magnolia Gas Gathering Pipeline, which will then transport the gas to Enbridge’s downstream Garden Banks Gas Pipeline, a Federal Energy Regulatory Commission (FERC)-regulated pipeline system.

This pipeline will help ensure the efficient delivery of natural gas from the deepwater field to markets onshore.

The Kaskida project, BP’s sixth operated hub in the US Gulf of Mexico, has a production capacity of 80,000 barrels of oil per day from its initial phase of six wells.

Located 250 miles southwest of New Orleans in the Keathley Canyon area, Kaskida taps into approximately 275 million barrels of recoverable oil equivalent, with potential for additional development phases based on further evaluations.

Furthermore, the project also plays a critical role in unlocking the potential of up to 10 billion barrels of discovered resources within the broader Kaskida and Tiber catchment areas. The hub will utilize advanced 20K drilling technology to develop high-pressure reservoirs in furtherance of deepwater oil extraction efforts.

Enbridge’s agreements with BP are supported by long-term contracts and include provisions that would allow BP to potentially connect future discoveries in its Paleogene portfolio to the new pipeline systems.

The new pipelines will be designed to accommodate additional connections from other nearby oil and gas fields, allowing for potential future expansion.

Enbridge plans to begin detailed design work and procurement activities in early 2025, with the pipelines expected to become operational by 2029. The total cost of the project is estimated at around US$700 million.

The company sees this expansion as part of Enbridge’s broader strategy to diversify its offshore business.

“The Canyon Oil and Gas pipelines offer an attractive opportunity for Enbridge to serve customers in the Gulf of Mexico and further expand our US Gulf Coast footprint,” said Cynthia Hansen, Enbridge’s executive vice president and president of gas transmission and midstream.

“The agreements generate stable and predictable cash flow and provide future growth opportunities,” she added.

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

This post appeared first on investingnews.com

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Coeur Mining to Buy SilverCrest Metals for US$1.7 Billion

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Coeur Mining (NYSE:CDE) announced it will acquire SilverCrest Metals (TSX:SIL,NYSEAMERICAN:SILV) in a US$1.7 billion deal, furthering its bid to position itself as a leading global silver producer.

The acquisition will see Coeur integrate SilverCrest’s Las Chispas mine in Sonora, Mexico, a high-grade, low-cost silver and gold operation. The transaction is also expected to bolster Coeur’s silver production, projecting an output of 21 million ounces of silver annually across five North American mining operations by 2025.

The combined entity will also produce an estimated 432,000 ounces of gold per year.

Under the terms, the transaction will involve a share exchange under which SilverCrest shareholders will receive 1.6022 Coeur common shares for each SilverCrest share.

Based on the closing prices of both companies on October 3, 2024, this equates to a per-share valuation of US$11.34 for SilverCrest, a premium of 18 percent over recent trading averages.

Upon completion, Coeur shareholders will own approximately 63 percent of the combined company, while SilverCrest shareholders will hold around 37 percent.

This acquisition is part of Coeur’s strategy to enhance its silver production and operational footprint in North America.

Coeur, which already operates the Rochester silver mine in Nevada and the Palmarejo underground mine in Mexico, will add Las Chispas to its portfolio, who in turn commenced commercial production in late 2022.

The combined company’s operations will focus predominantly on silver, which is projected to contribute 40 percent of revenues by 2025.

Coeur President and CEO Mitchell Krebs highlighted the importance of the acquisition for the company’s growth trajectory, stating that SilverCrest’s operational and financial strength would significantly enhance Coeur’s balance sheet and provide opportunities for investment in other projects.

“With over 15 years of experience operating our Palmarejo underground silver and gold operation next door in Chihuahua, we look forward to adding the high-quality Las Chispas mine to create a leading global silver company at a time when the demand for silver in renewable energy and a wide range of electrification end uses is rapidly rising,” Krebs added.

The acquisition is slated to close by late Q1 2025, pending approval from SilverCrest and Coeur shareholders, as well as regulatory clearances in Canada, Mexico and the US.

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

This post appeared first on investingnews.com

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Top 5 Canadian Mining Stocks This Week: Adyton Shines with 61 Percent Gain

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The S&P/TSX Venture Composite Index (INDEXTSI:JX) was up 0.96 percent on the week to 595.59 by 12:00 p.m. EDT on Friday. Meanwhile, the S&P/TSX Composite Index (INDEXTSI:OSPTX) was up 0.69 percent to 24,133.27 points.

The US Bureau of Labor Statistics released its Employment Situation Summary on Friday (October 4). It reported that September saw nonfarm payroll employment increase by 245,000, beating analysts’ estimates of an increase of 140,000 jobs.

Expected to remain flat month-over-month, the unemployment rate instead fell to 4.1 percent compared to 4.2 percent in August, still higher than the 3.8 percent recorded a year earlier. Meanwhile, average hourly earnings also beat expectations with a 0.4 percent month-over-month growth and a 4 percent growth versus the same period in 2023.

The latest jobs data could impact the US Federal Reserve policymakers’ decision at their next meeting on November 6 and 7, as a strong job market can lead to rising inflation. Industry analysts are now overwhelmingly predicting a 25 basis point cut over a 50 point one, a significant change from last week, when the predictions were close to 50/50 with the larger cut coming out on top.

Following the release, markets saw slight gains in morning trading. The S&P 500 (INDEXSP:INX) gained 0.35 percent to 5,719.36, the Nasdaq-100 (INDEXNASDAQ:NDX) was up 0.65 percent to 19,914.45 and the Dow Jones Industrial Average (INDEXDJX:.DJI) climbed 0.31 percent to reach 42,140.31 by 12 p.m. EDT.

Gold and silver experienced high volatility Friday, with gold dropping 0.27 percent to US$2,648.24 per ounce, and silver gaining 1.27 percent to hit US$32.37 per ounce as of 12 p.m. EDT. More broadly, the S&P GSCI (INDEXSP:SPGSCI) gained 0.73 percent to 559.61 points.

Against that backdrop, how did TSX- and TSXV-listed resource stocks perform? Here are the top five gainers.

1. Adyton Resources (TSXV:ADY)

Company Profile

Weekly gain: 60.87 percent
Market cap: C$39.32
Share price: C$0.185

Adyton Resources is working to advance the Feni Island and Fergusson Island gold projects in Papua New Guinea.

The Feni Island site has seen historic exploration, with 212 holes drilled over 18,813 meters. While limited work has been conducted by Adyton, a 2021 resource estimate shows an inferred quantity of 1.46 million ounces of gold on site. The company has been working to expand its gold resource and explore for copper at greater depths than previous exploration.

The company’s Fergusson Island gold project consists of two advanced exploration licenses for the Wapolu and Gameta targets, which host a combined indicated resource of 173,000 ounces of gold from 4 million metric tons (MT) grading 1.33 grams per MT (g/t), and an additional inferred resource of 540,000 ounces from 16.3 million MT grading 1.02 g/t.

The most recent news from Adyton came on Monday (September 30), when it announced it will be undertaking a non-brokered private placement. The company intends to issue up to 53 million common shares at a price of C$0.13 for proceeds up to C$6.89 million. Funds will primarily be used to advance work at Feni Island.

2. Q2 Metals (TSXV:QTWO)

Company Profile

Weekly gain: 50 percent
Market cap: C$133.14
Share price: C$1.11

Q2 Metals is a gold and lithium exploration company with operations in the Eeyou Istchee James Bay region of Québec, Canada, as well as in Queensland, Australia.

Its Mia lithium property in Québec consists of 171 mineral claims. Exploration at the site began in 2023, with surface mapping taking place in June and its inaugural drill program commencing in October. Six kilometers north of Mia, the company owns the Stellar lithium property, which consists of 77 claims covering 3,972 hectares.

In February 2024, Q2 acquired the Cisco lithium property, which consists of 222 mineral claims covering 11,374 hectares to the south of its other projects in the region. Since acquiring the property, the company has completed extensive exploration work with a 12 hole, 3,752.8 meter drill campaign carried out in the spring and an additional five hole, 2,610 meter campaign in the summer.

Shares in Q2 saw gains after the company released assay results on Tuesday from its spring exploration program at Cisco. In the announcement, the company provided a highlighted interval grading 1.69 percent lithium oxide over 215.6 meters, including an intersection of 2.29 percent lithium oxide over 64.6 meters.

Company Vice President Neil McCallum said of the results, “One important observation of these results is the higher-grade nature of the larger mineralized system as we test and track the system progressing to the south.”

3. NOA Lithium Brines (TSXV:NOAL)

Company Profile

Weekly gain: 50 percent
Market cap: C$26.13
Share price: C$0.195

NOA Lithium is a lithium exploration company working to advance three projects located within the lithium triangle area of the Salta province of Argentina: the 37,000 hectare Rio Grande project, the 78,000 hectare Arizaro project and the 10,200 hectare Salinas Grandes project.

Of the three projects, Rio Grande is the most advanced. NOA filed an NI 43-101 report in July 2024 that included an updated resource estimate for the site, with total measured and indicated resources of 499,000 MT of lithium with an additional inferred resource of 384,400 MT.

While the company hasn’t released news recently, it saw significant gains in its share price this week.

4. Jervois Global (TSXV:JRV)

Company Profile

Weekly gain: 50 percent
Market cap: C$32.67
Share price: C$0.015

Jervois Global is working to advance a global portfolio of nickel and cobalt projects. It owns the Idaho Cobalt Operations in the US, at which it suspended mine construction in 2023 due to low cobalt prices.

According to Jervois, the Idaho Cobalt Operations have the largest US cobalt resource. A 2020 feasibility study shows that they have a measured and indicated resource of 50.1 million pounds of cobalt from 5.24 million MT grading 0.44 percent, with inferred values of 12 million pounds of cobalt from 1.57 million MT grading 0.35 percent.

The company announced in June 2023 that it had entered into a US$15 million agreement through the US Department of Defense’s Defense Production Act for exploration activities at its property.

In its most recent announcement from the project, released on July 31, Jervois reported that extensional drilling at the Idaho Cobalt Operations had shown positive resource growth potential, with cobalt, gold and copper mineralization at depth. In the announcement, the company provides a highlighted result of 1.1 percent cobalt, 1.18 percent gold and 0.69 g/t gold over 1.8 meters.

Shares in Jervois Global saw gains this past week but the company did not release news.

5. P2 Gold (TSXV:PGLD)

Company Profile

Weekly gain: 46.15 percent
Market cap: C$13.1 million
Share price: C$0.095

P2 Gold is a gold exploration and development company working to advance projects in the US and Canada.

Its flagship Gabbs gold and copper project is located 233 kilometers from Reno, Nevada, and consists of 543 lode claims and one mining claim covering 4,500 hectares.

In a preliminary economic assessment for the project released on July 4, the company reported an after-tax net present value (NPV) of US$550 million and an internal rate of return of 21 percent with a payback period of 3 years based on a gold price of US$1,950 per ounce. However, the company noted that with a gold price of US$2,414 per ounce, the NPV increases to US$949.2 million.

Additionally, the report included mineral resource estimates for the site with indicated resources of 720,000 ounces of gold, 2.2 million ounces of silver and 297 million pounds of copper from 49.8 million MT, with additional inferred resources of 1.28 million ounces of gold, 3 million ounces of silver and 567.1 million pounds of copper from 112.2 million MT.

The most recent news from the company came on September 17 when it announced it had upsized and closed the final tranche of its non-brokered private placement to raise gross proceeds of US$1 million from the sale of 20 million shares. Proceeds will be used to fund exploration and development expenditures and general corporate purposes.

Data for this 5 Top Canadian Mining Stocks article was retrieved at 12:00 p.m. EDT on October 4, 2024, using TradingView’s stock screener. Only companies trading on the TSX and TSXVwith market capitalizations greater than C$10 million are included. Companies within the non-energy minerals and energy minerals sectors were considered.

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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Tech 5: OpenAI Closes on US$6.6 Billion in Funding, Cerebras Files for IPO

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Geopolitical tension clashed with uplifting jobs data, making for an interesting week on Wall Street.

Meanwhile, the crypto market went on a wild ride along with the greater stock market, and the US Securities and Exchange Commission (SEC) revived a nearly four-year-old case against Ripple Labs.

At OpenAI, a previously announced funding round wrapped up, bringing the company’s valuation above estimated projections.

1. OpenAI concludes latest funding round, exceeding target

OpenAI is predicting its revenue will reach US$11.6 billion next year, significantly surpassing the estimated US$3.7 billion it is projected to make in 2024. A Reuters source says this growth will be driven by corporate sales of its AI features and subscriptions to ChatGPT.

Bloomberg reported on September 11 that the company was seeking US$6.5 billion in a new funding round, drawing interest from venture capital investors and industry peers. OpenAI ultimately raised US$6.6 billion, announced on Wednesday (October 2), resulting in a valuation of US$157 billion, according to a press release.

While OpenAI did not disclose the full list of investors, reports indicate participation from Microsoft (NASDAQ:MSFT), NVIDIA (NASDAQ:NVDA) and SoftBank (TSE:9984), along with several venture capital firms. NVIDIA’s contribution of roughly US$100 million marks the company’s first investment in OpenAI. Its share price surged over 3 percent from Wednesday’s close on Thursday (October 3) morning. The company gained 5.69 percent this week.

NVIDIA’s performance, September 30 to October 4, 2024.

Chart via Google Finance.

While Apple (NASDAQ:AAPL) was rumored to be considering participation in the funding round, the Wall Street Journal reported on Monday (September 30) that the company ultimately decided not to invest.

Its share price is down over 2 percent for the week.

The funding round came in the form of convertible notes, with the stipulation of a successful restructuring to give majority control to a for-profit arm. There is also a clause to remove the cap on returns for investors and a condition that prevents inventors from backing rival companies, such as Elon Musk’s xAI, as reported by the Financial Times.

2. Crypto markets rally, end the week on a high note

Bitcoin’s record-breaking September came to an abrupt end on Tuesday (October 1), with the cryptocurrency falling 6.8 percent to US$61,279.47 on Friday (October 4) morning from its peak of US$66,078. Ether, Solana, Cardano, XRP and Ton also experienced losses this week, and hefty outflows from spot exchange-traded funds were observed.

10x Research attributes Bitcoin’s initial drop on Monday to overbought conditions and apprehension surrounding Tuesday’s monthly US ISM Manufacturing data, a key economic indicator.

Further losses across the crypto market were fueled by rising tensions in the Middle East and the dockworkers strike along the east coast of the US. These events quickly dashed hopes of a bullish “Uptober,” a term used to describe a historically positive period for cryptocurrency prices in October.

Amid these volatile trading conditions, on Wednesday crypto asset manager Bitwise filed a Form S-1 with the SEC to launch an ETF for Ripple Labs’ XRP token. This move came as the SEC filed a notice to appeal Judge Analisa Torres’ August 7 ruling on Ripple Labs. The ruling states that Ripple Labs was in violation of securities law only when tokens were sold to institutional investors, and the judge ordered the company to pay a fine of US$125 million for improper selling — just over 6 percent of the US$2 billion the SEC was seeking.

In a statement, an SEC spokesperson said, ‘We believe that the district court decision in the Ripple matter conflicts with decades of Supreme Court precedent and securities laws and look forward to making our case to the Second Circuit.’

Bitcoin’s 24 hour price performance as of Friday at 4:00 p.m. PDT.

Chart via CoinGecko.

However, the tone shifted again on Friday afternoon as the US Department of Labor reported that the economy added 254,000 jobs in September, much higher than the expected 150,00. This provides a compelling rationale for the Federal Reserve to reduce interest rates gradually, which is good news for crypto markets. Bitcoin and Ether are up 2.3 percent and 3.4 percent, respectively, just after Friday’s closing bell, marking the end of a turbulent first week of Q3.

3. California governor vetoes Senate Bill 1047

California Governor Gavin Newsom made a long-awaited decision regarding SB 1047, a comprehensive artificial intelligence policy that would have held developers responsible for “severe harm” caused by their technologies.

Describing the bill as “well-intentioned,” Newsom ultimately decided to veto the bill, authored by Senator Scott Weiner (CA-D). In a statement, the governor said the legislation would have applied “stringent standards to even the most basic functions” and that regulation should be based on “empirical evidence and science”. He also noted that a California-only approach to AI regulation could be warranted, “especially absent federal action by Congress.’

However, SB 1047’s focus on large, expensive AI models could mislead the public about the level of control over this rapidly evolving technology. It’s possible that smaller, specialized models, not covered by the bill, could pose equal or greater risks, potentially stifling innovation that benefits the public.

The idea that overly stringent regulation would stifle progress and innovation in the field was the main argument made by opponents of the bill, which included former House Speaker Nancy Pelosi, Big Tech CEOs and venture capital firm Andreessen Horowitz, which has invested billions in AI.

4. AI startup Cerebras files for IPO

Cerebras Systems, an AI startup that builds specialized computer systems to facilitate deep learning, filed a registration statement for an initial public offering with the SEC on Monday. The company has experienced rapid growth and could one day challenge NVIDIA’s dominance in the chip manufacturing industry in the US.

Cerebras’ flagship product, the Wafer Scale Engine (WSE), is the largest chip ever made. Unlike traditional graphic processing units (GPUs), including NVIDIA’s H100 GPU, which separate processing and memory, the WSE integration is designed to keep data on the chip rather than transferring it to different locations within a system or across a network.

The transfer of data creates what’s often called the Neumann bottleneck, a fundamental limitation that hinders performance by slowing down data access. Cerebras’ architecture minimizes the distance data needs to travel, reducing latency and improving performance. This makes it an ideal solution for tasks that require massive data sets, such as genomic research, climate modeling, fraud detection and of course training large language models.

Recent filings show Cerebras’ revenue surged nearly 70 percent in 2023 to US$78.7 million, compared to US$24.6 million the previous year. At the same time, losses narrowed from US$4.28 per share to US$2.92.

The company will list its Class A common stock on the Nasdaq under the symbol CBRS. The number of shares and the price range were not determined at press time.

5. Tesla stumbles after auto revenue declines

Shares of Tesla (NASDAQ:TSLA) are down 3.78 percent for the week following the company’s release of its Q3 results on Tuesday, which showed the company delivered 463,000 vehicles and produced approximately 470,000.

Tesla also reported a 2 percent increase in annual revenue to US$25.50 billion, topping LSEG estimates of US$24.77 billion. However, auto revenue fell by a whopping seven percent compared to a year ago, topping out at US$19.9 billion. Earnings per share also fell short of estimates, coming in at US$0.52 compared to US$0.62.

The company has had a rocky year, facing increased competition in China and regulatory scrutiny in the US. In July, sources for Bloomberg revealed that time constraints forced the company to delay the unveiling of its highly anticipated robotaxi from August 8 to October 10.

Tesla’s performance, September 30 to October 4, 2024.

Chart courtesy of Google Finance

Following the report’s release right after Tuesday’s closing bell, Tesla stock fell by over 4 percent in after-hours trading. Its share price slid a further 2 percent after the market’s opened on Wednesday before recovering to around US$250, roughly three percent lower than Monday’s opening price. Tesla closed the week at US$250.08.

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

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