Yukon's Economy gets a boost from Alexco's first quarter production.

Section that highlights Alexco Resources Corp.:
"The Yukon Economic Outlook forecasts mineral exploration spending to exceed $250 million, setting a record high.
Mineral production is expected to exceed $560 million this year — up from a forecasted value of $284 million in 2010 — due to strong gold, silver and copper prices and the recent launch of Alexco Resources Corp.'s Bellekeno silver-lead-zinc mine and Yukon Zinc Corp.'s Wolverine zinc mine.
The Bellekeno mine officially started commercial mining operations in January, while Yukon Zinc is expected to reach commercial production at the Wolverine mine in the third quarter of this year, according to the government's outlook.
"Current estimates have the total value of production from Wolverine and Bellekeno at almost $300 million for 2011," the outlook report states in part."

Yamana Gold Inc. TSX: YRI - Break above the 50 MA, Strong bullish momentum - UPDATE - 2.15% up

Yamana Gold Inc.  TSX: YRI - Review May 24th, 2011.

Strong move today, however on average volume.  The MACD is signaling continuing upside momentum with the RSI just getting above 50.
With today's move in Gold to 1527, Yamana Gold (YRI) is poised for continuing upside.

Below is a live Gold chart from Kitco:

UPDATE May 25th, 2011:

Up 2.15% today, with continuing momentum.  However, Today's rally seems to be on lower volume so be cautious.

Abercrombie & Fitch Co. (ANF) - Be cautious of today's move - May 23rd, 2011

Abercrombie & Fitch Co. (ANF) had a 0.58% jump May 23rd, 2011.  The the S&P500, Dow Jones, and the NASDAQ were all down over 1% as well.  So here are some reasons to be cautious of this move.

1. Slow stochastics / RSI shows a bearish divergence in May.
2. MACD momentum is pointing down.
3. Low volume move.  This jump had no conviction.


With stocks in general in negative territory, and with GAP INC (GPS) close last Friday, a correction in ANF is likely to occur. 

Alexco Resource Corp, TSE:AXR, AMEX:AXU, Q1 Results Highlights: Production of 447,524 ounces silver, calendar year 2011 production guidance of 2.8 million ounces silver

Alexco Resources Corp. (TSE:AXR, AMEX:AXU) Released its 1st Quarter results on May 12th, 2011.

"Third Fiscal Quarter Highlights

• Net income for quarter of $3.5 million ($0.06 basic and diluted earnings per share) and pre-tax income of $5.0 million on combined mining and consulting services revenue of $20.5 million
• Cash flows from operating activities of $7.2 million
• Bellekeno mine revenue of $18.8 million and gross profit of $9.5 million, on sales of 3,083 tonnes of lead-silver and zinc concentrate
• Production of 447,524 ounces silver, 3,682,304 pounds lead and 1,334,144 pounds zinc
• Realized metal prices averaged US$39.88 per ounce silver, US$1.20 per pound lead and US$1.07 per pound zinc
• Cash costs of production1 of $8.88 per ounce of payable silver produced, net of by-product credits
• Bellekeno ramp up continues, maintaining calendar year 2011 production guidance of 2.8 million ounces silver, 18 million pounds lead and 8 million pounds zine"

Daily chart Hosted by: StockCharts.com

 

The current chart looks very promising.  The MACD will likely have a bull cross over this upcoming week.  The RSI has plenty of room to run.  The 200 Day MA was not touched but seems there is heavy support at the current level.  Classic Morning Star candlestick formation May 16th - May 18th followed by a DOJI on May 20th.

I am expecting a run for the 50 Day MA.  Silver has seemed to turn already as well.   With Alexco's impressive Q1 financial results, Alexco's Management team has proven its ability to execute on their plans.  This silver mining stock is one to watch throughout 2011. 

Current Entry: 7.20

Additional Reading:

Alexco Resource Corp.: Emerging, Undervalued Silver Producer  

Alexco turns in 'historic' first full quarter of silver production

Alexco Reports Net Income of $3.5M and Operating Cash Flows of $7.2M in First Quarter of Production

Learn more above Alexco Resources from CEO Clynton Nauman

 

Gap (NYSE:GPS) meet reality - How 17.5% drop in a day signifies a re-evaluation of the retail sector has begun

 
At the start of the day Gap Inc gapped down below the 200 MA.  This is an extreme example of stock re-evaluation. So what happened?

First Quarter earnings were announced today.
Here are some highlights from the announcement:

- Gap Inc. (NYSE:GPS) today reported that net income for the first quarter, which ended April 30, 2011, decreased 23 percent to $233 million compared with $302 million for the first quarter last year.
- As stated earlier in the year, the company expects business performance during fiscal year 2011 to be heavily impacted by pressure from sourcing cost inflation, particularly in its value channels.
- While the company anticipated that the cost of goods would increase during the back half of the year, costs are actualizing above the initial estimates.

What the retail sector is finding out is that food / energy are of more importance to the consumer.  As food and energy have sky rocketed, stores are force to cut margins to incite consumers to purchase.  But accompanying food and energy on their surge up was clothing materials such as cotton.

 
Cotton has come off its multi year highs, but no doubt higher prices will be around for sometime.
Clothing retailers such as The Gap, American Eagle, and Abercrombie and Fitch are starting to feel the pinch resulting in narrowing gross margins. 

For some more information on the squeeze these and other retailers will face see:
US clothes shoppers facing squeeze

Now for a chart for Retails via ETF: XRT