Big Picture

Our overall Primary Trend Indicator remains Neutral.   3 strait days of gains has brought back much of the big losses from Monday's session but investors will likely book profits into the weekend and take note of key earnings releases yesterday from Semiconductor companies Applied Materials $AMAT and Nvidia Corp $NVDA - both going out with weak outlooks.  We are watching 2750 on the $SPX S&P500 as the key technical level to the downside to watch for further weakness, if broken to the downside.   Recovery above $2915 on strong volume will give us more confidence to raise our indicator to Positive.  Stay Tuned!

Changing Fundamentals

Boris Johnson, the Brexit-backing former $UK. foreign secretary and mayor of London, was named favorite by bookies to replace Theresa May as prime minister.

Eurozone April final core CPI YoY 1.3% vs consensus 1.2%

Hong Kong 1Q GDP QoQ 1.3% vs consensus 1.2%

Focus List

 

$Global Stock Markets rebounded again yesterday, 3 strait days of gains and looking for more on Friday heading into the weekend.   Stocks in $Asia are trading lower with Chinese markets down between 1.5-2.2% as currency devaluations and $US/China trade talks are non existent.  $WTI oil prices are up 1% to $63.60 and a weekly close above $63.50 is a BULLISH short term indication prices can test $65-66 in the next 1-2 weeks heading into a key OPEC+ meeting at the end of May to decide on production supply levels.  $GOLD prices are flat at $1289 per ounce and $COPPER prices are down 1 cent to $2.73 per pound.   $US Stock Futures are down 200 points at the time of writing on the $DOW30, indicating to close out the week on a down note – profit taking likely after 3 strait days of gains as investors head into the weekend.

 

** Support/Resistance Levels are found below in the Technical Indicators section **

** Use these levels to set your limit orders and/or price alerts **

Sebright Stocks IN PLAY for today are;

 

Champion Iron Ore $CIA.to – The stock has been on fire since the beginning of 2019, up 110% from $1.20 to $2.55.   Global supplies of Iron Ore pellets is constrained due to the Dam breach at the Brucutu mine in Brazil ($VALE) and natural phenomena Tropical Cyclone’s in Australia curtailing production.   Champion owns and operates the Bloom Lake mine in Newfoundland/Labrador which is a word class mine and a low cost one.   The company also owns other prospective lands surrounding the operation, with other assets in Australia and Canada to compliment the production profile.   The company recently hosted an analyst/investor day which drew strong interest and attention from North American, European and Australian investment firms.  In the last quarter reported $CIA posted a big profit of 30 cents per share – this next quarterly report (sometime mid June) will show an increase in realized commodity prices of 15-20%.   The next report could be a big profit, if you extrapolate 30 cents X’s 4 quarters you get $1.20 profit per share annualized – at the current price its trading at only 2 X’s forward earnings – very cheap for a miner as miners usually get a 4-5 X’s multiple.    Technically the stock is breaking out to new highs on strong volume.  Momentum and Relative Strength indicators are rising and On Balance Volume shows strong money flow and accumulation.  Sebright Capital has been highlighting $CIA since $1.70, we think $3 is a near term certainty and $4 is fairly valued and could get there in the next 1-3 months – and we will be accumulating shares in the open market today.  See charts below showing the correlation between China Steel Production and Global IRON ORE Prices

IamGold Corp. $IMG.to/$IAG – The company has been a severe under-performer in the $GOLD sector over the past 1 year.  Yesterday reports from Bloomberg indicated management has hired investment firms to discover a buyer for the all of or parts of the company.   The stock popped 10% intraday and held most of those gains into the close, after-hours the rumours were confirmed by sources close to the negotiations.   The company also maintained its full year 2019 production guidance of 810,000 to 870,000 attributable oz. and AISC of between $1,030/oz. and $1,080/oz. from producing mines in Canada, South America and Africa.   Current market capitalization is $1.5 Billion, we think fair value is between $3-3.5 Billion.   Sebright Capital will be buying a speculative position in $IMG.to in the open market today – this has good risk/reward potential and swing trade timeframe of 1-2 months.