BullMarketRun.com

Gold is at it again this morning, dropping below the pyschologically important $1,100 mark to $1,098 (down $14) as of 8:55 am Pacific time…it is off its low of the day which was $1,087…gold’s unexpected reversal the last couple of days is unsettling and suggests to us that we could see a washout to the $1,025 area in tandem with a rise in the U.S dollar above its 200-day moving average…technically, the best thing that could happen right now is a sudden and violent reversal to the upside or a further sharp drop with panic selling…the CDNX has fallen through minor support at last week’s low of 1,573 (currently at 1,554, off 37 points)…the Venture is now right at its 20-day moving average, which has proven to be a strong support area, and if that is breached then we need to be prepared for a drop to the 50-day moving average around 1,475…that would represent an almost 10% correction, the largest correction we’ve seen with the Venture since July of last year…our target of 1,950 to 2,300 on the Venture remains intact as this is merely a pullback within an ongoing and powerful bull market…we have emphasized on this site the importance of maintaining liquidity and cash at all times for unexpected situations just like this…corrections are great profit opportunities and you want to be buying into them, not selling into them…the TSX Gold Index, already in oversold territory, is now at 320…the next strong area of support is 310 followed by 290-295…the BullMarketRun portfolio is holding up well this morning and we see so no reason to sell any of these stocks…some minor weakness could occur in any of them which should be regarded as buying opportunities…the most vulnerable stock in our portfolio is Richfield Ventures (RVC, TSX-V) due to the cheap private placement stock that is now free trading…we are looking for a tremendous buying opportunity around 90 cents on Richfield which is trading this morning at $1.10…

After declining 13 consecutive trading sessions, Noront Resources (NOT, TSX-V) has become extremely oversold based on RSI and Stochastics…Noront is trading just slightly above its rising 200-day moving average of $1.55 where it should find very strong support…the stock closed today at $1.63, down three cents…for long term investors, Noront represents tremendous value at these levels…the time to buy is often when others are dumping a stock overboard, so now is clearly a no-brainer buying opportunity with Noront…some investors have been spooked with the Ring of Fire First Nations issue that has come up, but Noront has made the First Nations a priority and has an excellent working relationship with them…we suspect the First Nations are flexing their muscles because of actions of other companies and are also sending a strong message to Cliffs Natural Resources (CLF, NYSE) which recently won the takeover battle for Freewest Resources (FWR, TSX-V)…

Gold is off sharply this morning, along with just about everything else, and as of 9:00 am Pacific time the precious metal has lost a little of its lustre, down $29 to $1,108…the CDNX is off 37 points to 1,576 and will likely enter a minor corrective phase with downside targets of 1,550 (20-day moving average) or 1,475 (50-day moving average) if it breaks below last week’s low of 1,573…the Venture has held at or above its 50-day moving average since the middle of July last year…gold’s drop below key support at $1,120 is unsettling and opens up the strong possibility of a test of the December lows…the TSX Gold Index, already at oversold levels, dropped slightly below its 200-day moving average this morning to 324 but is now at 327, right at the 200-day…the last time the Gold Index dropped below its 200-day moving average was in late October last year, just prior to a massive run to the upside…our advice is very simple – the Venture Exchange is in a long-term bull market and any downside moves along the way represent great buying opportunities in good quality stocks…the BullMarketRun.com portfolio is holding up well this morning…Seafield Resources (SFF, TSX-V) and Greencastle Resources (VGN, TSX-V) are both up slightly…Gold Bullion Development (GBB, TSX-V) is even on the day at 10 cents…Colombian Mines (CMJ, TSX-V) and Richfield Ventures (RVC, TSX-V) are both down slightly…and Kent Exploration (KEX, TSX-V) is off a penny to .195…in the immediate short term, our two favorites are Kent and Gold Bullion which are extremely attractive on any further weakness…

At www.BullMarketRun.com, we are big believers in technical analysis. In fact, we spend considerable time each day pouring over charts of different stocks and the major Indexes. But we also place equal or even greater importance on the fundamentals of a particular company – the quality of its management and its projects, the health of its balance sheet, and the ability of that company’s “story” to excite investors. To make buy, sell and hold decisions on a stock based entirely on just technical analysis, or entirely on just fundamental analysis, is a grave mistake in our opinion and a recipe for disaster. Today we had two excellent examples of that.

Just prior to 8 o’clock Pacific time this morning, all subscribers of Clive Maund received an email recommending that investors “take profits” in Kent Exploration (KEX, TSX-V) “with the sector (technically) looking to react”. In our view Clive is one of the best technical analysts in the precious metals and energy markets. We are a long-time subscriber of his service and we recommend him to others. But as we have stated here before, his track record on individual stocks is not nearly as good as his gold, silver, and oil forecasts. And, one must always keep in mind that he hardly ever considers the fundamentals of a company before writing it up – that’s not his job. He’s a technical analyst – he’s focused on the charts and that’s it.

Investors can often act like sheep. So within 15 minutes of the “sky is falling” warning, Team Clive went into action and started “taking profits” and dumping Kent stock this morning, sending it as low as 19 cents (we managed to pick some up at .195 and again later at .21). It was rather incredible watching this unfold, especially considering the fact we had just returned from the Vancouver Resource Conference where we spoke with Kent President/CEO Graeme O’Neill for nearly half an hour yesterday regarding the prospects for his company.

What happened today with Kent clearly illustrates the mistakes investors can make when they act on emotion and don’t fully understand the fundamentals of the company they have invested in.

We will be going into more detail on Kent in the near future, but for now it’s important to state the following (we first initiated coverage on Kent last fall at 16 cents and we have been extremely bullish on this stock ever since).

1. Kent is one of the best managed junior exploration companies we have ever come across. Graeme O’Neill is a sharp businessman who knows how to run a company. He is focused and results driven and a man of integrity. He has the respect of his entire staff and has surrounded himself with outstanding talent, from geologists to IR, to move this company forward. For someone who doesn’t have a geological background, he has an amazingly strong grasp of this industry;

2. In the midst of the 2008-2009 financial crisis, O’Neill made some very bold and smart decisions – he scooped up some high quality properties in New Zealand and Australia for minimal cost, recruited some key personnel, and refused to do a dilutive financing unlike so many other companies. He very carefully managed Kent’s cash flow and guarded the share structure. His actions during that time have laid the foundation for Kent to become an extremely successful junior exploration company with a share price far exceeding where it is today;

3. O’Neill’s team of geologists have done an immense amount of work on the company’s New Zealand and Australian properties which are going to be drilled starting in March. Kent’s partner in Australia is Teck, and the Gnaweeda Project there is going to become a dividend for Kent shareholders who will be receiving one share in Archean Star Resources for every four shares held in Kent (check out www.archeanstar.com);

4. Kent’s Flagstaff Property in Washington state makes Kent the only publicly traded company we’re aware of with a production-ready barite deposit. Flagstaff also has a potential gold resource. Results are expected very soon from last October’s drill program that attempted to confirm some impressive historical gold drill results (high grade and shallow). It would certainly be a shame for those who sold today if Kent reports favorable results from Flagstaff this week or next (just our speculation, but the delay in assays could be due to re-checking high grades).

Kent closed today at .205, giving it a market capitalization of only $7 million with just 33.5 million shares outstanding. The Alexander River Project alone has an historical (non-compliant) gold resource of 643,000 ounces. A doubling of that resource is very realistic. Kent’s market cap has only one way to go and that’s up – perhaps way up.

With all due respect to Clive Maund, this is no time to be “taking profits” on Kent. In fact, just the opposite – this is the perfect opportunity, especially given the “on sale” sign that was posted today, to accumulate as much of this stock as possible in advance of what we believe will be a massive move in Kent anytime over the next few months.

Some strange selling hit Gold Bullion Development Corporation (GBB, TSX-V) today, too, driving it as low at .095. Gold Bullion finished the day down 1.5 cents to .10, its lowest close since Jan. 5. The selling appeared technical in nature, again ignoring the fundamentals. As soon as the stock fell below support at .105 (the 20-day moving average), a wave of selling came in and drove it down further. This company is exploring a property (a former producer) with tremendous potential along the “Cadillac Fault” where so many major discoveries have been made. Rest assured, we’ve done our homework on this one and we believe there’s a great chance Gold Bullion is going to make a significant exploration breakthrough at Granada (the very short term technicals may have weakened today but the longer term technicals and fundamentals with GBB are rock solid).

The markets are searching for direction this morning…gold has traded between $1,128 and $1,142 and as of 7:30 Pacific time is basically flat on the day at $1,134…the CDNX finished at a 52-week closing high of 1,606 yesterday and is currently up a point to 1,607…we’re preparing a new article regarding Gold Bullion Development Corporation (GBB, TSX-V), likely to be released tomorrow, after a fascinating interview yesterday with company President/CEO Frank Basa…Gold Bullion is even on the day so far at .115…assays are pending from the first few holes drilled last month at the Granada Gold Property…we collected a treasure chest of material from the Resource Conference which we’ll be sharing over the course of the next week or so…we are very bullish on the outlook for all of the companies currently in our portfolio, and we’ll be adding a couple more in the near future…
Noront Resources (NOT, TSX-V) is down 11 consecutive trading days and is getting very close to its 200-day moving average of $1.55 where it should find strong support…Noront is not part of our portfolio but this is a stock we like to trade and we consider its long-term potential to be outstanding…

It’s a quiet day on the markets with the U.S. holiday…gold is up $4 an ounce to $1,134 as of 8:15 am Pacific time, while the CDNX is ahead six points to 1,599…we’re still at the Vancouver Resource Investment Conference which wraps up today…we have conducted a few CEO interviews and we’ve collected quite a bit of information which we’ll be sharing on our site throughout the week…some well respected analysts are very bullish on molybdenum and uranium…the general consensus seems to be that gold is headed for its 10th consecutive yearly increase…on the subject of streaks, it’s interesting to note that Noront Resources (NOT, TSX-V) is down each of the past 10 trading sessions and is off a penny this morning to $1.72…we can’t see Noront going any lower than its rising 200-day moving average which is $1.55, so traders have a low risk opportunity here with this stock very oversold…our portfolio is very quiet this morning which will likely be the theme for today…things will heat up tomorrow, though…

CDNX

The CDNX remains in a powerful uptrend though it finished 12 points lower (less than 1%) on the week at 1,593 (the TSX fell 2.2% on the week while the TSX Gold Index dropped 5%). The CDNX hit a new 52-week high of 1,629 intra-day last Monday before dropping 3.4% to 1,573 by Tuesday as commodities took a hit. Friday’s action was impressive as the Venture Exchange largely erased a 15-point intra-day deficit to finish just two points lower on the day at 1,593. Again, the CDNX continues to show amazing resiliency even in the face of weakness in commodity prices which suggests to us that the junior resource market still has plenty of upside along with commodities. We will continue with the strategy of buying into any weakness with the Venture Exchange until the technicals break down and tell us to run for the exits (which likely won’t happen until we see at least 1,950).

BullMarketRun.com Portfolio – Another Good Week!

Gold Bullion Development (GBB, TSX-V)
Gold Bullion had another strong week, trading over 2.2 million shares and closing one cent higher at .12. An exciting exploration and development story is unfolding at Gold Bullion’s Granada Gold Property in Quebec, 40 miles west of Osisko’s (OSK, TSX) Canadian Malartic Deposit, as we have been explaining over the past few weeks. Not surprisingly there’s a real buzz at Gold Bullion’s booth at the Vancouver Resource Investment Conference, an event that wraps up at 6:00 pm Monday, and company President/CEO Frank Basa – who we will be interviewing Monday – is clearly upbeat. Assay results from December’s phase one drilling program are still pending and our “hunch” (based on Gold Bullion’s latest news release and our understanding of the geology of the Granada Mine and the surrounding area) is that these results will provide solid new evidence of the blue sky potential of Granada. From a technical perspective, the volume and price surge in this stock over the past six weeks or so has been eye-popping (record volumes for this stock) – this kind of activity almost always precedes a massive breakout. Gold Bullion is up 60% since we initiated coverage a month ago.

Seafield Resources (SFF, TSX-V)
Closing at 27 cents Friday, Seafield is now up 350% since we first brought this little gem to investors’ attention last summer. And the real fireworks with this stock, in our view, hasn’t even started. Seafield’s ties with privately-held Caribbean Copper and Gold Corporation are going to position it for tremendous success in Colombia, we believe, and Seafield also has highly prospective properties in Mexico and Ontario. The company is cashed up and seems to have some powerful players behind it. The heavy buying at current levels by M Partners and Fraser McKenzie, among others, gives us a lot of confidence that Seafield will go much higher in the weeks and months ahead.

Kent Exploration (KEX, TSX-V)
Kent had a strong week, reaching a new 52-week high of .245 before closing Friday at 22 cents. The company released some encouraging assays on trench sampling at its Alexander River Gold Project in New Zealand including 8 metres of 10.56 g/t and 3.2 metres of 24.6 g/t. The corporate strategy and determined focus of CEO/President Graeme O’Neill bodes very well for Kent shareholders. We are extremely bullish on the company’s Australian and New Zealand properties which are going to be explored extensively in the weeks and months ahead. The stock is up nearly 40% since we initiated coverage last fall.

Colombian Mines Corporation (CMJ, TSX-V)
Colombian Gold Mines gained five cents on the week to close at exactly $1.00, a 67% gain since we added this stock to our portfolio six weeks ago. The story here is pretty simple and compelling – a tightly-held stock with a very substantial and high quality package of exploration projects in Colombia where it is no Johnny-come-lately. CMJ will be soon be drilling its Yarumalito Gold Property, and on Friday the company also reported some good sample results from its El Dovio project. Colombian Mines currently has a $20 million market cap but a lot of potential still exists here, we believe.

Richfield Ventures (RVC, TSX-V)
Richfield roared to a 52-week high of $1.95 in the first week of January on drilling news and has backed off considerably since then, closing Friday at $1.14. Nothing has changed with this company – it is sitting on a potentially world class bulk tonnage deposit in the interior of British Colombia – other than the fact a whack of cheap private placement stock from last fall (between .12 and .17 cents) has become free trading. We expect this stock to head even lower in the near future as the market absorbs this paper, creating a tremendous buying opportunity in very oversold conditions. We will have more on this in the days ahead.

Greencastle Resources (VGN, TSX-V)
We added Greencastle to our portfolio last week at .175, and the stock closed Friday at .17. We have more to report regarding Greencastle in the near future. The company is trading barely above cash value and is currently drilling some test wells in southwestern Saskatchewan. Greencastle also has gold, coal and shale gas interests. With a market cap of just under $8 million and regular monthly cash flow, Greencastle represents superb value and very limited downside risk.

BullMarketRun.com will be providing exclusive reports from the Vancouver Resource and Investment Conference taking place today and tomorrow.