BullMarketRun.com

It’s Christmas Eve and markets are open for only three-and-a-half hours today, so trading volumes are rather light…gold is sharply higher while the Venture Exchange is closing in on a new 52-week high which it no doubt will achieve over the final three trading days of the year next week, if not today…we have been very busy here recently, studying the markets and researching the best opportunities including Gold Bullion Development Corporation (GBB, TSX-V) which we believe is on the verge of what could be a spectacular run, and it was our intention to take about a week off from posting but we have decided against that as there are too many dramatic developments unfolding in the junior resource markets…as we have stated here repeatedly this month, the possibility of a massive upside move in the Venture Exchange early in the New Year is very real as gold’s recent correction has run its course…to help prepare our readers, we are working diligently on a significant amount of material that we will be posting this coming Monday morning, Dec. 28, which will give investors a full day to review before Canadian markets resume trading Tuesday…we will cover Gold Bullion Development in further detail and also review all of our 2009 stock picks…we will be providing readers with a few other individual stock selections to consider including Richfield Ventures (RVC, TSX-V)…and we’ll be examining where the CDNX and gold could be headed…so be sure to check back here Monday for an investor’s smorgasbord…we wish all of our readers a very merry Christmas and a New Year filled with peace, joy, good health and prosperity…as an investor, businessman and entrepreneur, I enjoy making money and being a student of the market…2009 has been a very profitable year…money is important, but as a Christian the Bible has taught me a couple of very important principles – always try to maintain an eternal perspective, and make money serve you, not the other way around…food for thought as you enjoy this very special time of the year…Merry Christmas, everyone!

As we have been predicting, a major new upleg is underway in the Venture Exchange and the gold bulls are regaining control…there’s no question the Venture will reach a new 52-week high by month end…it is up 22 points to 1444 as of 9:50 am Pacific time this morning, just 22 points off the 1466 high set December 3…gold has firmed up $11.00 to $1,094…we have more to report by tomorrow morning on Gold Bullion Development Corporation (GBB, TSX-V) which is strong at .095 this morning…there’s no question a major breakout is imminent here, and as we mentioned here yesterday we’ll be reporting extensively on Gold Bullion in the days and weeks ahead…it has serious “legs” as demonstrated by the volume breakout we’ve seen, and we are extremely bullish on its Granada Gold Property which is just 40 miles west of Osisko’s (OSK, TSX) massive Canadian Malartic Deposit…the substantially increased competing offer for Canplats Resources Corporation (CPQ, TSX-V) this morning demonstrates how undervalued many juniors still are, and will add fuel to the fire in this CDNX bull market run…

Early this month we sounded the alarms as gold and many gold stocks became clearly overbought and a correction appeared imminent and even desirable. Our alarms are now going off again, but this time it’s to “jump back in” as gold is ready for an explosive year-end/January move. That bodes well for our favorite stock picks including our latest star, Gold Bullion Development Corporation (GBB, TSX-V), which we will be covering extensively here in the days and weeks ahead.

Gold’s intra-day reversal Tuesday (an important “V” shape pattern that also showed up in silver) was just another sign that this correction has run its course and the bulls are about to regain control. Gold fell as low as $1,073 Tuesday morning, then rallied back significantly to create a “V” shape pattern that technical analyst Clive Maund has identified successfully before at market bottoms.

Other technical indicators suggest gold’s advance is about to resume: Stochastics are at very oversold levels, from where strong moves have originated before, and the oversold TSX Gold Index came within two points Tuesday of our earlier identified “worst case” bottom of 325 where it is supported strongly by a rising 200-day moving average.

Most importantly, as we have been stating here repeatedly recently, the Venture Exchange keeps telling us that gold is headed higher – much higher. Gold’s $150 drop in price barely put a dent in the CDNX these past three weeks. From its December 3 high of 1466, the Venture dropped only 66 points or just 4.5% (vs. gold’s drop of 12.5%) to its monthly low of 1400 December 8. After that, the Venture firmed up which told us clearly that gold’s primary trend was not going to be broken and its correction was likely going to be short. The Venture Exchange remains in a parabolic uptrend that may not seriously correct until the Index has tested the 2,000 level in early 2010 – yes, that is a stunning 41% move from current levels. We speculated on this earlier in the month – a massive move in the CDNX appears to be building, a move reminiscent of the 2002-2004 period.

So The Perfect Storm is upon us and investors need to fully grasp what’s about to happen here. This is a low-risk entry point with huge gain potential in quality junior gold stocks with sound management, money in the bank, and excellent properties to explore. Now is the time to pull the trigger.

By the way, as a point of interest, in a period covering the last eight years (2001 through 2008) the CDNX has gained an average of 50 points or 3.68% over the final three trading days of the year. Over those 24 total trading days, the Index was up on 23 of them. With the markets closed this Friday and next Monday prior to the final three trading days of the year, NOW is the time to be a buyer.

Gold Bullion Development has firmed up nicely this week and is right on track for a major breakout. We’ll be reporting more on GBB Wednesday – this one has serious “legs”.

First, our apologies for not posting our regular Morning Musings yesterday…we were traveling from Regina to Vancouver and experienced numerous delays and simply did not have the opportunity to post…we’re tempted to buy WestJet shares, though, because when things go wrong and it isn’t even their fault, they look after their customers…great company which will always succeed…gold is down slightly this morning but we remain convinced we’re at or very near the bottom of this correction and the action in the Venture Exchange confirms that…the charts indicate another upleg in the Venture beginning very soon…Gold Bullion Development Corporation (GBB, TSX-V) enjoyed a strong day yesterday and is firm again this morning…Westscore Energy (WTR, TSX-V), which we recommended just recently in the mid-50’s, has shot up to the mid-70’s which was our immediate target area…there is strong resistance in the mid to upper 70’s which it has a good chance eventually of breaking through, but traders should consider taking profits… the TSX Gold Index is at 329 as of 7:40 this morning Pacific time, just a few points above its 200-day moving average…it is oversold and also in an area on the RSI and Stochastics where it has rocketed from before, additional confirmation that the next move up in the gold market is near at hand…

(Part 1 of 2)

Our main focus at www.BullMarketRun.com is to uncover special situations in the junior resource sector, primarily undervalued, undiscovered companies that have the potential to increase 10-fold in value. Companies with excellent management, outstanding properties, and the ability to progress rapidly. Gold Bullion Development Corporation (GBB, TSX-V) meets those criteria and it is our next Seafield Resources (SFF, TSX-V – we first recommended Seafield when it was sitting at just 6 cents and it is now at .21). We have made some brief mentions of Gold Bullion on our site recently, and this morning we’re issuing an urgent alert as we believe a powerful new upleg in this stock is set to begin. Gold Bullion closed Friday, December 18, at .075. Christmas is right around the corner and we suggest you give yourself a gift and fill your own stocking this week with a bunch of Gold Bullion Development shares.

We have been examining Gold Bullion very closely for over a month now and performing our usual due diligence. Here are the factors that will drive this stock significantly higher in the coming days and weeks:

1. Cashed up – $1.5 million raised. Money in the bank makes a huge difference;

2. Drill program underway at Granada Gold Mine and a substantial expansion of exploration is expected there with the company in a much stronger financial position;

3. Blue sky potential – Gold Bullion has assembled a very attractive land package at least 2 km wide and 7 km long around the Granada Mine which is on trend with Osisko’s massive Canadian Malartic Deposit (6 million + ounces) approximately 40 miles to the east. The non-compliant 1994 A.C.A. Howe Ltd. estimate of 280,000 ounces (all categories, 2.38 million tonnes at 4.08 g/t) at the Granada Mine represents less than 7% of Gold Bullion’s current land package in the area which exhibits similar geological characteristics to the Malartic Deposit. What we’re saying is, the potential exists for not just a few hundred thousand ounces of mineable gold at the Granada Property but a massive, low cost, open pit, large tonnage deposit;

4. CEO is heavily invested: Judging from Gold Bullion’s Dec. 8th news release, it appears that Frank Basa has further increased his already substantial holdings in this company. We like the fact the President and CEO holds a lot of shares;

5. Super strong technicals – a technical analysis of GBB shows that this stock has emerged from a classic bottom pattern earlier this year and the price now appears ready to accelerate rapidly. Massive accumulation has been taking place, all moving averages are in bullish alignment, and the next major resistance we see on the chart is around 18 cents. From a technical standpoint, this stock is a classic slam-dunk buy. Stochastics and RSI are essentially neutral which is excellent – despite the heavy accumulation of late, this stock has a long way to go before it’s technically overbought.

We have to assume by Gold Bullion’s Dec. 2nd news release that a 1,000 metre drill program at Granada is either well underway or possibly nearing completion. The additional private placement for nearly $1 million announced Dec. 8th tells us that Gold Bullion will likely expand its current drill program and exploration at Granada, which is only going to further raise the interest level in this stock.

With its $950,000 private placement expected to close shortly, Gold Bullion will have approximately 81 million shares outstanding for a market capitalization, based on Friday’s closing price of 7.5 cents, of only $6 million – chicken feed compared to what this could be worth as exploration is ramped up at Granada and the real potential of this property is revealed.

We’re hoping to interview Gold Bullion President Frank Basa early this week for a follow-up story (Part 2) by mid-week here at www.BullMarketRun.com. In the meantime, do your own due diligence, as always, but this is a special opportunity we are extremely bullish on and we encourage our readers to take advantage of it. This is our Christmas present to you!!!

The Venture Exchange has been our most reliable and accurate indicator of the direction of gold and the overall markets over the past couple of years. It telegraphed last year’s market crash and financial crisis by breaking down technically in early July, 2008, just before the major markets broke down and before gold and commodities in general collapsed. More recently, its violent reversal October 29 (a 47 point jump) signaled a major new advance in gold which is exactly what happened – gold began its charge to $1,225 in early November. And what the CDNX is telling us now, technically, is that gold’s recent correction is nothing to worry about and the precious metal’s next major move is up, not down.

Some pundits are predicting that the gold bull market is over. Nothing could be further from the truth, and the CDNX confirms that. We cautioned our readers in early December that gold was clearly overbought and that it was a good time to lock in some profits on gold stocks. We were correct. Now it’s a great time to be back on the buy side as gold itself has become deeply oversold, based on stochastics, and the CDNX appears to be gearing up for another major move to the upside which confirms that gold indeed likely bottomed last Thursday at $1,095 and is headed higher once again.

While gold dropped 10.6% from its high earlier this month and the TSX Gold Index fell 16%, the Venture Exchange shed only 3%. This confirms to us that gold’s drop is merely a correction to buy into – if gold was about to change its primary direction, there is no way the CDNX would have held up so well over the past couple of weeks. No way at all. The Venture remains firmly in a parabolic uptrend – this is an incredibly powerful market – and it reminds us of the 2002-2004 period when it ran from 900 in late 2002 to nearly 2,000 in early 2004 before a substantial correction. Yes, we see a very real possibility that the Venture will make a run to the 2,000 level – that’s a further 40% increase from here – in early 2010, and that could only happen with new record highs in the price of gold and higher commodity prices in general.

We will see a new 52-week high in the CDNX by month end we’re anticipating a very strong January. Be a buyer and stay long until this market tells us otherwise.

Welcome to our site, or at least a sneak preview of it! The final version will look much different than this as we develop a fully-integrated and very unique business, investment and money-management resource site.

An important component of this site is going to be original research on small and undiscovered junior resource companies that offer very real and significant upside potential. We are extremely selective in the companies we feature and put forward to investors – we prefer quality over quantity. Management is the first thing we look at – it’s our #1 criteria – because without superb or solid management, a company with the best properties in the world is either going to underperform or flat-out fail. As simple as that. So we look for superior management guided by strong business ethics and integrity, followed by an outstanding portfolio of projects.

Disclaimer:

BullMarketRun.com is completely independent from any companies we cover. We accept no compensation of any kind from any groups, individuals or corporations mentioned on our site. Our stock coverage is for informational purposes only and must not be viewed or interpreted as “buy”, “sell” or “hold” recommendations. No investment opinion or other advice is being rendered on any stock or company. We strongly recommend that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, and do your own due diligence and research before making any investment decisions. The stocks we cover, by definition, are highly speculative and potentially very volatile. Investors are cautioned that they may lose all or a portion of their investment if they make a purchase or short sale in these speculative stocks. We are not Registered Securities Advisors. Our opinions can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction.  It should be assumed that BullMarketRun.com writers and their associates may hold or dispose of or trade in positions in any securities mentioned herein at any time.

The sky is not falling, as some are suggesting, after gold’s $40 plunge yesterday…the Venture Exchange is our leading and most reliable indicator for the direction of the gold market and until the CDNX breaks down, we will remain extremely bullish on the gold and commodity markets in general…it’s interesting to note that while gold is down about 11% from its recent high, and while the TSX Gold Index is off 16%, the CDNX is off only 2.5% and its 20-day moving average continues to rise which it has been doing most of this year…that kind of strength in the Venture Exchange confirms that gold and gold stocks are still in an up-trend…the CDNX has a powerful looking chart, and we suspect we’ll see a new yearly high in this market by the end of the month…Gold Bullion Development Corporation (GBB, TSX-V) is our next “Seafield” – an undervalued stock under 10 cents that is getting ready to explode…we’ll be reporting much more on Gold Bullion in the days ahead…there has been massive accumulation in this play recently…from current levels, we see a near-term double or even a triple or better as GBB makes further progress in developing its Granada Gold Mine in Quebec…Granada and Osisko’s massive Malartic gold deposit (just 40 miles from Granada) are both situated on the “Cadillac Fault”, a major fault system associated with other gold deposits in Quebec and Ontario…with virtually all the infrastructure required on site, Gold Bullion has an excellent opportunity to turn Granada into a small but profitable open-pit producer…pre-NI-43-101 proven and probable reserves reported by A.C.A. Howe in 1994 were 2.38 million tons grading 0.10 opt…in all categories, the estimated gold reserves are 280,000 ounces…Gold Bullion has explored just a small portion of the Granada property area, so excellent discovery potential exists…like so many companies, Gold Bullion was hit hard by last year’s market crash…it now has the funding in place to advance the Granada project and unlock its value for shareholders…we suggest investors do their due diligence on GBB, but while the opportunity is there – and we suspect it won’t be there for long – we suggest aggressive accumulation between 7 and 8 cents…