BullMarketRun.com

Gold continues to shine and is up $3 an ounce to $1,130 as of 8:55 am Pacific time…the CDNX is closing in on its 52-week high…the Index is up 19 more points this morning to 1621 after a 26-point gain on Friday…that puts the CDNX just 8 points shy of its January high of 1629…the strength we’ve seen in the Venture Exchange recently is convincing evidence that gold is likely going to make a very powerful run…Sidon International Resources (SD, TSX-V) is up half a cent to 6.5 cents on over 2.5 million shares…BullMarketRun readers have been accumulating Sidon between 5 and 7 cents since last week…the company has a letter of intent for an option to purchase 80% of a highly prospective gold property in eastern Tanzania, a region that we believe has excellent potential to develop into a major new gold camp…more money has come out of the ground from that area in gold than has gone into it in terms of exploration dollars…in otherwords this is a very underexplored region with considerable upside potential…the high grade showings and what local miners have pulled out of the ground at Sidon’s proposed Morogoro East acquisition is stunning…over the last decade Tanzania has gone from a million ounces of gold reserves to over 50 million ounces as it revamped its Mining Act and turned friendly to foreign investment…gold is now a significant contributer to that African country’s annual GDP…Gold Bullion Development (GBB, TSX-V) continues to show strength and is currently unchanged at 29.5 cents…the market barely flinched when 240,000 shares were offered at 30 cents just prior to the opening bell…we expect GBB to announce the closing of its private placement by the end of the week…Noront Resources (NOT, TSX-V) is not in our portfolio but we’ve covered it here before and it’s a stock we really like…NOT‘s chart is looking very good with the stock breaking through its 200-day moving average this morning…Noront is currently up 18 cents to $1.85…great stock to hold for the long term…

The curious action in the CDNX recently tipped us off to a possible major move in the price of gold and there is a growing mountain of evidence to support that view.

Commercial short positions in gold have dropped to their lowest levels since September before the big rally of last fall began – it is foolhardy to bet against the commercial traders who are notoriously correct.  The commercials have also taken an extraordinarily high long position in the beaten down Euro, suggesting the U.S. dollar may have topped out for the time being at least.

Rising overall commodity prices, including impressive strength in crude oil, suggests the world economy is picking up steam and inflationary forces are gaining momentum.  The very strong Canadian dollar, a commodity driven currency, is clear evidence for that (what this means for interest rates could be a potential problem down the road for the markets).

Technically, gold’s 14-day and 30-day moving averages have swung positive, and the 60-day SMA is very close to turning positive which would be a major development.

Below we have an interesting chart and comments from John in Peterborough, Ontario (BMR’s contributing techncial analyst), who’s not quite ready to say the party’s on – but he’s getting very close.  Thanks, John!

Gold Technical Analysis Leading Into Week of April 5

John:  Starting this coming week we are going to see GOLD assault the $1,140 resistance.  Not only must it get through this level but close above it for a minimum of 2 consecutive days.  This effectively would change $1,140 from resistance to support.  The $1,140 level is shown as a black horizontal line on the chart.

The top indicator is the RSI, a momentum indicator, and it shows a small “W” formation and is pointing up – very bullish (mauve circle).

On the chart the Bollinger bands which are close together and horizontal are a strong indicator of near term future volatility (green circle).

The indicator below the chart is a trend indicator – ADX (black line) is low, showing the trend is weak because GOLD has been in a 4-month consolidation.

The green Directional Indicator (up) line (+DI) is above the red Directional Indicator (down) line (-DI) – very bullish (light blue circle).

Remember, the ADX line shows the strength of the trend and NOT the direction.  The position of the +DI and the -DI indicates the direction.

A Special Easter Message

At BullMarketRun, our aim is to guide you safely and profitably through the very volatile TSX Venture Exchange (CDNX) and introduce companies to you that have the potential of increasing by hundreds and even thousands of percent.  We have delivered some tremendous winners over the last number of months:

Gold Bullion Development – up 321% since mid-December, 2009

Seafield Resources – up 342% since August, 2009

Colombian Mines Corporation – up 117% since December, 2009

Richfield Minerals – up 44% since December, 2009

Sidon International Resources – up 20% since March 31, 2010

Half of our recommendations from last year are up over 100%, and only one of the 7 stocks in the BMR portfolio is actually down from when we initiated coverage – Greencastle Resources, though we know Greencastle will yet enjoy a terrific 2010.

We have made consistently correct calls on the direction of both the CDNX and gold.  We’re not boasting but to use a baseball analogy, we’re “in the zone” right now and we’re knocking a lot of pitches right out of the park (I have some valued assistants but one critical “helper” who I will introduce shortly).

I’ve had some BMR readers tell me that their lives have changed with massive profits they’ve made on Gold Bullion and Seafield in particular.  That’s encouraging to hear but I have something very personal to share regarding that kind of statement which ties in nicely with Easter.

I’m currently 46 years old.  Just seven years ago I lost everything I had in a business failure.  It was a humbling experience.  I was deeply in debt and was left with just $100 cash in my pocket.  I didn’t realize it at the time but in retrospect that was the best thing that ever could have happened to me.

Over the next two years I made the greatest discovery of my life, far more important than Gold Bullion Development or any other stock I will ever uncover the rest of my time here on earth:  Jesus Christ.  I had always believed in God, in a general sort of way, but He was very distant for me and I had no understanding of who Jesus really was (and is).  I made that discovery through asking questions and, most importantly, reading the Bible for the first time in my life.

In the spring of 2005, I asked Jesus Christ into my heart as my Lord and Saviour.  My life has never been the same since.  It was the best decision I ever made and the best decision I ever will make.  If you’re not already a Christian, if you’re not really at peace and you’re searching for ways to change your life – I encourage you to pick up the Bible, start with the Book of John, and discover as I did that Jesus is indeed “the way, the truth, and the life: no man cometh unto the father, but by me.”  (John 14:6, KJV)

Jesus has the kind of transformational power that will truly change a person’s life, and I’m an example of that.  A 2,000 percent gain on Gold Bullion, Seafield, Sidon or any other stock we highlight could be an incredible blessing for anyone but it would not bring the kind of change in a person’s life that only Jesus can deliver.  I would not trade my Lord and Saviour for anything in this world – not for all the gold along the Cadillac Trend, not for anything.

To some, unfortunately, Easter is just a  “spring holiday”.  What it’s really about, though, is The Cross.  It’s about what Jesus did for you and me at Calvary.  He suffered and shed His precious blood for the sins of mankind and rose from the dead three days later in history’s Greatest Triumph.  That is why we celebrate Easter.  By faith and grace, and with a repentant heart, I was saved on a beautiful spring day in 2005 as I finally understood who Jesus was, who He is (the living Son of God) and what He did for me on The Cross.  I’m a sinner saved by grace and faith because of Jesus’ death and resurrection.

I had coffee at Starbucks the other day with my pastor who is new to town and has become a real blessing in my life.   I mentioned to him the Bible has taught me more about money and how to handle it and invest it than any other book I’ve read, and we had a great conversation about the importance God places on managing money and making it grow.   There are actually more verses in the Bible pertaining to money than anything else.  Money itself is not the root of all evil, just the love of money – you start going down a slippery slope when money becomes your “idol” and you put it ahead of everything else in your life.

God does want to bless each of us financially.  But I had to think much differently about money and I also had to become a good steward of it before I started getting blessed. And I have been blessed abundantly – I am now completely debt free with more money now than I’ve ever had my entire life.  Money serves me now, not the other way around.  Money is sort of a tool that God uses in my life to help bring about some of the plans and purposes He has for me.

I hope this message is accepted in the way it was intended, with love and a sincere desire for everyone to take a moment this weekend to reflect on why we celebrate Easter and what is most important in life.  Our individual stock portfolios change every day and there are never any guarantees.  What goes up eventually comes down.   Jesus never changes – He is the same today, yesterday and forever – and guarantees our salvation and eternal life if we simply place our faith in Him.  God put us on this earth for a reason – to enjoy a personal, intimate relationship with Him – and He made it possible for us to do that through his Son Jesus Christ and what He did for you and me on The Cross.

Below is a link to an Easter card for our valued BMR readers.

Blessings and enjoy a wonderful Easter.

Jon

Writer, BullMarketRun

http://www.crosscards.com/cards/easter/hope/view.html?id=JEECC90X

CDNX

We changed our “cautious” stance on the CDNX to outright “bullish” last Monday morning which in retrospect was obviously a wise move as the Venture enjoyed a superb week with strong volume and advancing prices.  The CDNX was up 43 points for the week (26 of those points came Thursday) and closed at 1603, its first close above 1600 since January 19.  It now appears certain in our view that the CDNX will soon break out to a new 52-week high and test the 1,700 level in April (potentially, this could also mark the beginning of a parabolic move that could take the Index even higher – close to 2,000 – before an overdue 20 to 30 per cent correction sets in.  This would require a new all-time for gold).  Given the power behind this latest move, in terms of volume and price action, it seems unlikely the CDNX will stall out at its 52-week high of 1629 – we believe that resistance will be overcome rather easily.  All the CDNX’s moving averages are now in bullish alignment with a reversal today in the recently declining 50-day SMA which has now turned positive – a very bullish development.  This market is on the move.

The previous week’s action in the CDNX tipped us off that a major upside move was quite possibly in the cards as the Index held up so well in the face of weakening gold prices and a declining 50-day SMA.  The Venture also hit  50 on the RSI last week which is where it has consistently staged significant rallies from in the past.

As we’ve stated here many times, the CDNX has proven to be the most reliable leading indicator of the precious metals and commodities markets.  What the CDNX has been saying consistently for some time now is that those markets are going higher, and indeed that is proving to be the case.

Gold is looking a lot stronger now from a technical standpoint.  It’ll be very interesting to see what kind of follow-through there is next week from the big move we’ve seen in recent days.  Based on the signals the CDNX has been giving us, it’s very likely gold is on the verge of a powerful breakout.

The BullMarketRun Portfolio

As expected, Gold Bullion Development (GBB, TSX-V) found major support in the upper 20’s this week and made an impressive turnaround Thursday when it dropped as low as 27 cents and quickly reversed to finish the trading week at 29.5 cents, a 3 cent increase from March 26…there is little doubt in our mind that Gold Bullion is going to enjoy a spectacular April…the company needs to close its private placement first, however, and we expect that to happen by the end of next week…Gold Bullion’s explosive chart is a picture that tells a thousand words about the Granada Gold Property and its potential to deliver a major bulk tonnage, open-pit deposit…

Seafield Resources (SFF, TSX-V)

Seafield looks ready to start moving again, especially after Wednesday’s sudden drop to 21 cents – just below its 100-day SMA…we saw the same thing out of Seafield in early December and the stock then proceeded to double in price in the span of about a month…Seafield finished the week strong, closing at 26.5 cents for a half-cent weekly gain…we should see some exploration news out of the company’s Quinchia properties in Colombia this month with drilling commencing in the latter half of this second quarter…

Sidon International Resources (SD, TSX-V)

We added Sidon to the BullMarketRun portfolio Wednesday morning when it was sitting at just 5 cents…this company has enormous blue sky potential and reminds us a lot of the above two former fledgling situations that we have scored hugely on – Gold Bullion and Seafield Resources…we uncovered Gold Bullion when it was at 7 cents last December (up 321% since then) and Seafield when it was at 6 cents last summer (up 317% since then)…Sidon has signed a letter of intent for an option to purchase an initial 80% interest in the highly prospective Morogoro East Gold Property in Tanzania…Morogoro is a potential company-maker project for Sidon which, like Gold Bullion and Seafield, will have to raise some capital to make things fly…some astronomical grades have been pulled out of parts of Morogoro by local miners over the last number of years…there is clearly a high grade zone for Sidon to explore there…gold exploration and mining have exploded over the last decade in Tanzania with the African country moving from one million ounces of reserves to 50 million ounces…Morogoro is 100 kilometres south of Canaco’s (CAN, TSX-V) Handeni Gold Project which has delivered significant results and powered that stock from a nickel to a high of 75 cents…Sidon was the most active stock on the Venture Exchange Thursday, trading a whopping 13 million shares…it got as high as 7 cents where it ran into resistance…it closed at 6 cents for a 1.5 cent gain on the week…the high volume suggests the stock is moving from weak hands into strong hands…Sidon could really start to fly after churning through some more stock and breaking down the wall at 7 cents, its 52-week high…its current market cap is only $4.7 million…

Kent Exploration (KEX, TSX-V)

Kent continues to struggle and is trading once again between its 100 and 200-day moving averages…investors with a 3 to 6 month time horizon should do extremely well with Kent…for those with that kind of longer term outlook, now is clearly the time to be accumulating this stock…keep in mind also the “dividend” Kent will be paying out in the form of shares in spin-off Archean Star Resources in this 2nd quarter (the shareholder vote on this is April 30)…40,000 shares of Kent gives you 10,000 shares of Archean Star which could come on the market around the 25 cent level…Kent closed the week at 16 cents, down half a penny from the previous Friday close…

Greencastle Resources (VGN, TSX-V)

As with Kent, patience is required with Greencastle at the moment…this is the only stock in our portfolio that is actually down in value from when we first highlighted it…we are not concerned, however, as Greencastle has far too much going for it…at this week’s closing price of 13 cents, the company is essentially trading for only its cash value…that’s always the best time, actually, to be buying Greencastle as long as you’re prepared to wait for the inevitable move higher…there is a lot of unlocked value here…

Richfield Ventures (RVC, TSX-V)

Richfield has finally pulled back into a zone of strong support as we had anticipated…it was down 8 more cents this week to $1.73, a 52-cent fall from its $2.25 March high…Richfield begins a 25,000 metre drill program at its Blackwater Project in central British Columbia this month…Blackwater has a great chance to develop into a world class bulk tonnage deposit…Richfield will first try to deepen hole BW 59 (1.25 g/t Au over 329 metres) – the final hole it drilled last year which ended in five metres of 9 g/t Au…they will also be drilling for possible extensions of the mineralization to the northwest, southwest, south and east of BW 59…these holes will be drilled vertically to depths of 500 to 600 metres from surface…following this Phase 1 program, Richfield will then start 15,000 metres of definition drilling to establish a NI-43-101 compliant resource…on a fully diluted basis, Richfield’s market cap is only $70 million which by year-end could easily be four or five times that amount if they’re able to determine an inferred resource of at least 3 million ounces…

Colombian Mines (CMJ, TSX-V)

Colombian dropped a penny this week to $1.30 where it seems to have some strong support…this stock’s chart is a thing of beauty with a nice consistent advance over the last six months…we would be shocked if CMJ doesn’t take a run to at least the $2.00 level sometime this quarter…CMJ continues to drill its Yarmualito Gold Property and has a huge portfolio of properties in Colombia which also makes it a potential takeover target, especially if Yarmualito delivers some good results…

Gold is enjoying another strong day and as of 7:55 am Pacific time is up $12 an ounce to $1,126…silver has jumped almost 3 per cent to nearly $18 while oil is also strong this morning…we saw signs of this current move in precious metals and commodities last week in the way in which the CDNX was behaving, which is why we switched from cautious to bullish on the Venture Monday morning…the CDNX is approaching 1600 again…it’s ahead 14 points at the moment to 1590…this bullish move is another reason why we added Sidon International Resources (SD, TSX-V) to our portfolio yesterday…Sidon has been a fledging stock for a while but so too were Gold Bullion (GBB, TSX-V) and Seafield Resources (SFF, TSX-V) before we discovered them…Sidon hss traded huge volume this morning as stock moves from weak hands into strong hands and a new chapter begins in this company’s history…Sidon has signed a letter of intent for an option to purchase an initial 80% interest in the Morogoro East Gold Property in the mining friendly jurisdiction of Tanzania…this property is in a highly prospective and unexplored area of Tanzania approximately 100 kilometres south of Canaco’s Handeni Gold Project which has returned significant results…Morogoro has a high grade zone that Sidon would test with a drill program…local prospectors have bagged some astronomical grades at Morogoro…the potential for major tonnage (high grade and lower grade) clearly exists…we spoke with Laurence Stephenson yesterday who has been a geologist for over 30 years and knows Tanzania like the back of his hand…he found this property for Sidon and told us the grades at Morogoro are higher than what he first saw at Handeni…Tanzania’s gold mining industry has exploded over the last decade with total reserves jumping to 50 million ounces from just one million ounces…Sidon’s package is in an area with huge upside and blue sky potential…Sidon is up half a penny to 6 cents this morning on over 8 million shares…Gold Bullion is quiet this morning, down a penny to 27 cents as investors wait for the closing of its $4 million private placement…the rest of our portfolio is also quiet this morning…we’re continuing due diligence on another company at the moment which we’ll be featuring within the next two weeks…for BMR email alerts, simply email us ([email protected]) with the subject heading “eAlert” along with your first name and we will add you to that growing list…