1. AP reported that sales of new homes surged in April by the biggest amount in 14 years, but the median price of a new home dropped by the largest amount on record. Now if that was graphed on a candlestick graph with volume overlay, it would look like a big and long red candle on heavy volume. Ouch!
2. Novagold Resources (NG) announced yesterday a partnership with Tech Cominco (TCK) to build its $2 billion Galore Creek copper-gold mine in northwestern British Columbia. Although shares of NG surged up to 11% yesterday, they are still well off the highs during the period of the Barrick bid. Under the terms of the partnership, NG will cede 50% control of the project to Tech Cominco. I wonder if some NG investors have had second thoughts about rejecting the tie up with Barrick.
3. The surge in the price of uranium during the last months seems to have prompted some gold mining companies such as Harmony Gold Mining to consider ramping up uranium investments. Harmony is considering spinning of its uranium assets into a separate company.
4. Speaking of Harmony, it joined the list of recently miners to close out their gold hedge books when it announced last week it closed out its Australian hedge book for $75 million.
5. CUP has been on fire lately despite copper weakness. HL at trendline support right now.
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