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Gold has traded in a range of $1,371 to $1,393 today…as of 8:25 am Pacific, the yellow metal is at $1,381, down $6 an ounce…Silver is off 38 cents to $28.38 while the U.S. Dollar Index is slightly ahead at 80.10…CPM Group, a New York commodities research and advisory firm, released a 224-page report yesterday on the outlook for the silver market…the firm predicts silver will trade at historical highs over the next decade…the study is a comprehensive analysis of the key market fundamentals of silver that are expected to influence prices over the next 10 years…the report contains projections for global mine production through 2019 on a mine-by-mine basis and also contains a new China section with an analysis of the silver supply and demand in a previously opaque market…CPM Group said the use of silver in China during 2009 was perhaps twice as much as had been believed…one of the best “pure silver” plays we like at BMR is Great Panther Silver (GPR, TSX) which more than doubled since we first mentioned it a while back…GPR is off a nickel this morning to $2.43, very close to its 10-day moving average where there should be strong support…we’re continuing to work on uncovering some high quality CDNX silver plays…the CDNX is off 3 points this morning to 2106…it’s very important to point out that while Gold has dropped about 4% from its new all-time high at the beginning of the week, the CDNX has fallen only half that amount…we’ve seen this type of thing many times this year and because the CDNX is such a reliable leading indicator, what it tells us is that Gold’s weakness is only temporary and the primary uptrend in both the CDNX and Gold remains firmly intact…in otherwords, buy into the dip…right before Christmas we really expect the CDNX to start taking off…Cadillac Mining (CQX, TSX-V) is strong again this morning, up another 5.5 cents to 31.5 cents…this stock has had a great run recently but its market cap is still only a paltry $7.5 million…there is a very strong fundamental case for Cadillac Mining with its properties along the Cadillac Trend and the fact the company could pull the trigger at any time on a new project acquisition, likely a major one we believe, in the Great Basin as disclosed in a news release last Monday…Cadillac Mining also has a silver project in the British Columbia interior that is very intriguing…the chart for this stock and the volume surge we’ve seen clearly indicate CQX has started a new chapter in its history, so the possibilities for this one with a current market cap of only $7.5 million are indeed immense…it’s one of our top picks for 2011…Gold Bullion Development (GBB, TSX-V) is off 2 pennies at 68 cents…we see Frank Basa has done another interview with Jay Taylor…we’ll be doing our own interview with Basa in the near future prior to Christmas…keep an eye on Colombian Mines (CMJ, TSX-V) which has finally broken through resistance at 95 cents as we were speculating it could…it closed yesterday at $1.05 and is off a nickel this morning…with the breakout, CMJ could be a very strong performer over the coming weeks…Sidon International (SD, TSX-V) is unchanged at 19.5 cents…it fell as low as 17.5 cents this morning where there is very strong technical support as we indicated a few days ago…Seafield Resources (SFF, TSX-V) now in the process of completing an $8 million financing at 50 cents, is off 3 pennies at 59 cents…the stock has rock-solid support in the mid-50’s and we expect action in SFF will heat up again quickly as soon as the financing is complete and approved by the Exchange…GoldQuest Mining (GQC, TSX-V) has firmed up nicely in recent days, likely on anticipation of the resumption of drilling at its properties in the Dominican Republic and the pending release of a 43-101 on the Toral zinc-lead-silver project in Spain…GQC is currently up half a penny at 40 cents…

BMR’s track record for finding undiscovered “gems” in the speculative junior resource market speaks for itself.  The 10-stock BMR model “Portfolio” is up a whopping 273% this year (as of last Friday) with several of those companies (AGE, GQC, VGN, CUI) added over just the last few months.  Today we added an 11th company to the BMR Portfolio, Cadillac Mining (CQX, TSX-V), and not just because we like the name.

Mark our words, Cadillac Mining is a major turnaround situation that has the potential to absolutely explode.  For two years, as revealed in CQX’s Monday news release, this company has been researching precious metals targets in Elephant Country – the Great Basin in the United States.  Victor Erickson and Andre Audet are smart mining people.  Reading between the lines of Monday’s release, it’s our view they’re close to pulling the trigger on a major deal that could quickly transform this company.

But that’s not all.

With a paltry market cap of only $6.5 million, CQX holds over 7,000 hectares along the amazing Cadillac Trend.  Their landholdings are centered between the Noranda mining camp, host to VMS and Gold deposits, and the 11 million ounce Kerr Addison Mine.

If you look at Gold Bullion Development’s (GBB, TSX-V) latest property map on the GBB web site, everything in light green to the west of Granada belongs to Cadillac Mining and its new partner, Visible Gold (VGD, TSX-V).

Cadillac Mining, however, retains a 100% interest in the strategic and potentially very valuable Wasamac claims (several kilometres north of GBB’s newly-acquired South Kekeko Property).  Richmont Mines (RIC, TSX) is drilling its Wasamac Property like crazy right now and getting excellent results.  Richmont is making new discoveries at this former producing mine.  Their aggressive drilling continues and they expect to come out with more results and an updated resource calculation next month.

The principal structure hosting the Wasamac Gold mineralization dips northerly toward the seven titles comprising 164 hectares owned by Cadillac.  In addition, the Horne Creek fault, host to significant mineralization to the northeast, and the related McClay splay, also cross Cadillac’s Wasa Property which is largely untested for its Gold potential.  Only one hole has ever been drilled on Cadillac’s Wasa claims and it intercepted a zone that is interpreted to be a feeder system typical of those seen under VMS systems in the Noranda camp.  The discovery of an alteration pipe on these claims, and Richmont’s drilling success in the immediate vicinity, underscore the value of this important asset for Cadillac Mining.

The share structure for Cadillac Mining is extremely attractive with only 25 million shares outstanding and just 27.5 million fully diluted.  Management holds over 20% and it should be pointed out that insiders haven’t sold a single share during this explosion in trading volume (nine million shares on the CDNX over the last 11 sessions).

We asked BMR’s technical analyst to examine the CQX chart and he decided to take a personal position in this company as well.  The chart confirms that Cadillac Mining has started a new chapter in its history.  Record volume surges like we’ve seen with this stock over the past few months are typically a tell-tale sign of big developments on the way.  Note on John’s chart below that the 200-week SMA has reversed to the upside – a technical turnaround such as this is hugely bullish and is a very clear sign that the fundamentals with Cadillac Mining have changed for the better.  CQX at less than $10 million in market cap is an absolute steal in our view, especially considering the very bullish possibilities for the CDNX in 2011.  You can read John’s analysis immediately below this impressive-looking chart:

John: Today, Cadillac Mining (CQX, TSX-V) opened at 23 cents, dipped to a low of 21 cents, then exploded to a high of 28 cents before closing at 26 cents for a gain of a nickel (23.81%) on CDNX volume of 1.3 million shares (176,500 shares were traded on the ALPHA market).  Through the first 4 days this week a record number of CQX shares, 5.2 million, have traded on the CDNX – very bullish.

Looking at the 1-year weekly chart above, we see that from the beginning of 2010 – and even before that – this stock traded in a horizontal trend channel. The volume was thin until the 2nd week in June (shortly after Richmont started drilling Wasamac ) when it gradually increased until a breakout from the channel to the upside occurred during the 1st week of November (thin blue vertical line).  Since then the weekly volume has been near or above 1 million shares. In the 6-week period from Nov. 1 to now, the price has climbed from a low of 6 cents to a high this week of 28 cents.  This is a stock on the move and the technicals are confirming a major turnaround in this company with similar patterns to what we saw with GBB, CUI, SD, VGN and SFF.

Because we have seen such large relative movements in price (from 6 cents to 28 cents, a factor of more than 4) with CQX, the chart and the indicators can appear distorted unless longer period smoothing techniques are used. Trading during the past 3 weeks has formed a “3 White Soldiers Candle Pattern” which is classed as a continuation pattern. So with the high daily volumes we can expect this to continue for the immediate future.

I have shown a very long term SMA(200) weekly moving average which had been declining until recently and has now turned up and is providing bullish support. Also shown is the SMA(50) weekly moving average which is also pointing up in bullish support.

A set of Fibonacci levels is shown (blue lines) and the next near-term target is at the 36 cent level (this is not a BMR price target as we don’t give price targets but a theoretical Fibonacci target based on technical analysis as a guide for investors.  BMR readers may recall that recent Fibonacci targets for CUI, VGN and SD were reached and even exceeded).

Looking at the indicators:

In order to smooth the RSI, I have used a 50 period instead of the usual 14. The RSI(50) at 74% shows there is room to move higher without becoming overbought – bullish.

The Slow Stochastics %K (black line) is at 94% and the %D (red line) is at 87%. Both are in the overbought region but as we can see from early in the year they can stay overbought for an extended time on a weekly chart in a bullish trend – bullish.

The ADX trend indicator has the +DI (green line) pointing up at 65 and well above the -DI (red line) at 7.  The ADX (black line) trend strength indicator is at 33 and climbing – a very bullish orientation.

Outlook: The turnaround in this company has begun. The volume has increased dramatically since the beginning of last month and the chart and indicators show a very bullish future.

Gold has stabilized after falling more than $60 the last two days…as of 8:40 am Pacific, the yellow metal is up $5 an ounce to $1,386…Silver is ahead 38 cents to $28.74 while the U.S. Dollar Index is up one-fifth of a point to 80.26…the CDNX has climbed 9 points to 2108…BMR had added Cadillac Mining (CQX, TSX-V) to its model Portfolio this morning…this is a company with a paltry current market cap of $6 million with a large land package along the Cadillac Trend to the west of Gold Bullion including strategic claims that could form part of a mine (Wasamac) that Richmont Mines (RIC, TSX) is trying to bring back into production…in addition, Cadillac appears close to acquiring what could be a major project in the Great Basin as revealed by the company in a news release Monday…this is a definite turnaround situation and one of the most exciting opportunities we’ve come across to date…Richmont is getting excellent drill results from Wasamac and has increased its drill program there to 20,000 metres…a new resource calculation is expected next month…the principal structure hosting the Wasamac Gold mineralization dips northerly toward the seven titles comprising 164 hectares owned by Cadillac…in addition, the Horne Creek fault, host to significant mineralization to the northeast, and the related Mackay splay, also cross Cadillac’s “Wasa” Property which is largely untested for its Gold potential…Richmont’s Wasamac Property is a former producer (253,000 ounces between 1965 and 1971) and the company is now making new discoveries at Wasamac after outlining an inferred resource of 285,000 ounces of Gold following 14,000 metres of drilling between 2002 and 2004…an exciting story is emerging at Wasamac and Cadillac Mining’s tie-in has been largely overlooked by the market, though this stock has obviously been under some significant accumulation since Richmont reported its first drill results from Wasamac August 31…Richmont confirmed in a news release yesterday a “strong system of mineralization” between vertical depths of 200 to 800 metres that remains open at depth in several areas…the Wasamac Shear Zone extends over a strike length of two kilometres…Richmont, which has a market cap of over $150 million, is evaluating the potential for an underground bulk-mining operation at Wasamac and expects to put a nearby property (Francoeur) into commercial production by the middle of next year…in addition to the strategic Wasamac claims, Cadillac holds over 7,000 hectares in the general area and the company announced Monday it has partnered with Visible Gold (VGD, TSX-V) for the development of those properties…Cadillac Mining’s surge in volume in recent months is a tell-tale sign that major developments are in the making with this company, so the recent increase in price we believe could be just the beginning here…it’s hard to find a company in this current market with such exciting prospects trading at a market cap of only around $6 million…management is solid and we love the share structure and the chart…Cadillac also has a silver property in British Columbia that we’re intrigued about…as of 8:40 this morning, CQX is up 6.5 cents to 27.5 cents on over 600,000 shares…Seafield Resources (SFF, TSX-V) has announced an $8 million financing this morning, something that doesn’t surprise us as we had alluded to the potential of this the other day…we view this as a positive development, however, as it likely puts a floor on the share price in the low 50’s and will give Seafield in excess of $10 million in cash on hand…we expect a lot of warrants and options are also being exercised…the stock can be expected to be “range bound” for a while until the financing is completed, but Seafield’s prospects are exciting…Seafield is currently up a nickel at 60 cents…GoldQuest Mining (GQC, TSX-V) is stronger this morning which could be in anticipation of the start of a new drill program in the Dominican Republic and/or the pending release of a 43-101 resource estimate on the company’s Toral zinc-lead-silver deposit in Spain…GQC hit a new 52-week of 42.5 cents this morning and is currently trading at 40.5 cents, up 3.5 cents…Sidon International (SD, TSX-V) has announced a property acquisition this morning with a hefty price tag…the 13.8-square-kilometre property is located adjacent to the northwest of the Morogoro East Gold Property and contains the favourable stratigraphy encountered at Morogoro East…we’re not sure what to make of the terms of the deal ($5 million for the property, 10 million shares and a $5 million work commitment over five years) but what this could indicate – and we certainly hope this is the case –  is that Sidon is tremendously excited about what it’s seeing at Morogoro East and has a very high level of confidence in that property…Sidon is up a penny to 21.5 cents…Gold Bullion Development (GBB, TSX-V) is firm this morning, up 2 pennies to 70 cents…the stock has strong technical support in the high 60’s…

7:00 am Pacific

The “Cadillac Trend” is hot.  Gold Bullion Development (GBB, TSX-V), the “sleeper” company we uncovered for our readers a year ago, is up nearly 700% so far in 2010.  Adventure Gold (AGE, TSX-V), Threegold Resources (THG, TSX-V), Savant Explorations (SVT, TSX-V), Vantex Resources (VAX, TSX-V) and Golden Valley Mines (GZZ, TSX-V) are just a few examples of companies working along the Cadillac Trend who have drawn considerable attention from investors this year and their share prices have risen substantially.

Of course The King of Them All is Osisko (OSK, TSX) which now commands a market capitalization of over $6 billion with the largest Gold deposit in Canada, Canadian Malartic.

As BMR readers know, we have a great deal of interest in the Cadillac Trend and we’ve visited the area three times this year.  We’ll be back again soon, no matter how cold and miserable the weather might be.  We’re in the midst of the greatest Gold bull market in history and the pace of exploration in northwestern Quebec continues to accelerate.  We’re convinced there are still a good number of potential home run opportunities out there and we’re very pleased to introduce one of them this morning – Cadillac Mining (CQX, TSX-V).  This is a major turnaround situation – one only has to look at the chart to realize that – with the company’s market cap currently just over $5 million based on 25 million shares outstanding (27.5 million fully diluted) and a closing share price yesterday of 21 cents.  The stock gapped up and traded its highest volume ever yesterday (1.8 million shares) on significant news from a couple of fronts which we’ll get into shortly.

There are major fundamental and technical reasons why this company looks so interesting right now and we urge our readers to perform their own due diligence as quickly as possible.  As always, the risks are high in this game – despite our unquestionably good track record at BMR, there are never any guarantees which is why we frequently remind investors to read our disclaimer.  Don’t ever invest money in speculative junior mining stocks, or anything for that matter, that you can’t afford to lose.  Use discernment and common sense.

Having said that, the case for Cadillac Mining is a powerful one.  The volume spike alone in this stock over the last couple of months in particular suggests something potentially big is in the works.  Volume is often the best indicator of all.  If you take a quick look at the five-year chart for CQX, you can see that record volume has poured into this stock over the last six months and has recently accelerated.  We saw similar trends with Gold Bullion, Seafield Resources (SFF, TSX-V),  Sidon International (SD, TSX-V), Currie Rose Resources (CUI, TSX-V), Adventure Gold and others early in their moves.

Cadillac Mining holds a lot of property to the west of Rouyn-Noranda, approximately six to as much as 30 kilometres west of Gold Bullion’s Granada Gold Property.  GBB’s newly-acquired Kekeko South Property is immediately south of Cadillac’s Kekeko Property.

On Monday Cadillac Mining announced it has entered into an agreement with Visible Gold (VGD, TSX-V) on claims (including Kekeko) covering a total of 7,423 hectares that VGD can earn a 60% interest in.  More on that in a moment.

What Cadillac Mining did not option out, however, was its “Wasamac claims”, a few kilometres north of Kekeko, and this is where things get really interesting.

Few investors seem to be aware that Cadillac Mining’s Wasamac claims adjoin the property Richmont Mines (RIC, TSX-V) has been drilling since May and getting very good results from. In fact, CQX stated in its most recent Sedar filing that the principal structure hosting the Wasamac Gold mineralization dips northerly toward the seven titles comprising 164 hectares owned by Cadillac.  In addition, the Horne Creek fault, host to significant mineralization to the northeast, and the related Mackay splay, also cross Cadillac’s “Wasa” Property which is largely untested for its Gold potential.

Richmont is very bullish about its Wasamac Property which is a former producer (253,000 ounces between 1965 and 1971) with excellent potential to go back into production (we love those former producers – very often there are extensions to structures!).  Richmont is now making new discoveries as it builds on an inferred resource of 285,000 ounces at Wasamac which was outlined after 14,000 metres of drilling between 2002 and 2004.  The company launched a 10,000 metre drill program at Wasamac in May and then added an extra 5,000 metres and a third drill rig after excellent initial results (seven of the first eight holes intercepted mineralized zones of more than eight metres true width).

Richmont came out yesterday morning with more encouraging news on Wasamac including a ramping up of the drill program to 20,000 metres.  Results from eight more holes were released and included 6.14 g/t Au over 6.47 metres, 3.12 g/t Au over 14.04 metres, and 3.17 g/t Au over 7.75 metres (all true widths).  Richmont has confirmed a “strong system of mineralization” between vertical depths of 200 to 800 metres that remains open at depth in several areas.  The Wasamac Shear Zone extends over a strike length of more than two kilometres.  The company is evaluating the potential for an underground bulk-mining operation and expects to complete an updated resource calculation for Wasamac by sometime next month.  Things are moving fast for Richmont at this very interesting property (commercial production at the company’s Francoeur Mine, just 10 kilometres west of Wasamac, is expected to begin by the middle of next year).

The news from Richmont was clearly the spark that ignited the gap-up and the volume surge in Cadillac Mining yesterday.  The intense interest in companies operating along the Cadillac Trend, and the awareness of some investors that Richmont has been drilling right next to CQX’s claims and getting good results, have obviously been the driving factors behind the increase in trading activity in Cadillac Mining recently.  This stock has been under significant accumulation which makes perfect sense.  At the very beginning of November the market cap for this stock was a ridiculous $1 million.  We wish we were aware of it at that point in time but despite the increase in the stock price since then, we suspect CQX is still flying “under the radar” of most investors.  We see a lot of blue sky potential here, especially given the bullishness of the CDNX.  It’s difficult in the current market to find a company with such exciting prospects trading at a market cap of only five or six million dollars.   Cadillac has a few hundred thousand dollars in its bank account but spends its money wisely.  The company will obviously have to do a financing at some point but diluting the attractive share structure at current prices is not in the cards in our view.

Cadillac’s decision to enter into an option agreement with Visible Gold on its properties excluding Wasamac makes a lot of sense.  VGD can earn a 60% interest in 217 of Cadillac’s 228 claims by incurring exploration expenditures of $4.2 million, issuing 500,000 of its shares to Cadillac, and paying Cadillac a total of $100,000.  This is over a four-year period with VGD committed to spending $500,000 in the first year of the option.   Visible Gold, which has a current market cap of $26 million, is in the process of raising $5 million and we expect them to take an aggressive approach to exploration on Cadillac’s claims.  VGD President and CEO Martin Dallaire stated, “Cadillac Mining’s professional team brought this project to a stage that is in line with Visible Gold’s business model – many ready-to-drill targets right on the prolific Gold Cadillac break and close to mining infrastructure.  We will test those targets in the coming weeks and months.”

This is effective leveraging on the part of Cadillac Mining and will allow the company to focus its expenditures on Wasamac and new opportunities elsewhere.

Yes, there’s a really sweet bonus here.  Not only does an investor in Cadillac Mining get exposure to a highly prospective land package just west of Granada, stretching out 24 kilometres, but it appears this company could be close to pulling the trigger on a significant project in the Great Basin.  As disclosed in Monday’s news release, and suggested in the 2008 corporate presentation on its web site (“Nevada/Colorado targets pending”), Cadillac Mining is “actively pursuing precious metal targets researched over the past two years in the Great Basin of the USA.”

Interesting – they are hunting for Gold not only along the prolific Cadillac Trend but in “Elephant Country” across the border.    As part of our due diligence we’ve spoken with Cadillac Mining President and CEO Victor Erickson.  He’s an accomplished mining engineer who knows his stuff.  Over his long career he has worked for several major mining firms, both domestically and internationally.  He’s determined and has all the ability, in our view, to turn this company into a major success.  At his side is Andre Audet (not the same Andre Audet who’s with Everton Resources, though the two know each other and Everton’s Audet speaks highly of his namesake).   Cadillac’s Audet is the company’s Vice-President, Exploration, and served as Chief Geologist at the Sigma Mine in Val d’Or when he was with Dome Mines Group from 1974 to 1987.  He has since worked as an international mining consultant in Asia, Africa, and the Americas focusing on exploration, property acquisition and evaluation primarily on Archean and epithermal Gold and VMS and Sedex base metal deposits. Needless to say, there are smart mining people running Cadillac.  That fact, plus the fact they’ve been researching opportunities in the Great Basin over the past two years, suggests to us they could come up with a whopper of a project down south.

At BMR, the only company we’ll add to our model “Portfolio” is one that offers extraordinary long-term potential.  While this company could perform very well over the short term, we’re particularly impressed with its longer term possibilities which is why we’ve added it our Portfolio at 23 cents.  We’re impressed with management which holds a substantial share position in the company (more than 20%).

In addition, the company’s strong presence on the Cadillac Trend, in particular its close proximity to Richmont’s Wasamac Property, has the potential to provide some immediate excitement while it tries to nail down a project in the Great Basin.  Richmont’s ongoing drilling with more results to come should keep interest in Cadillac Mining high.  And Visible Gold will be going to work soon on Cadillac’s properties and that’s going to be interesting to watch as well.  With a current market cap of just over $5 million, CQX does offer a lot of upside potential going into what we expect will be a very strong overall market in 2011.

“Cadillac Mining” has a nice “feel” to it and we’re very pleased to put this special situation in front of our readers for their consideration and due diligence.

Disclaimer:

The writer holds a position in Cadillac Mining.  BullMarketRun is completely independent from any companies it covers.  BMR accepts no compensation of any kind from the companies we cover in return for that coverage.   We accept no advertising either.  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 adviser, 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 BMR personnel, writers and their associates may hold or dispose of or trade in positions in any securities mentioned herein at any time.  Owner/Publisher of BullMarketRun.com is Terry Dyer of Langley, British Columbia, who does not currently hold a position in Cadillac Mining.

Welcome to our site, or at least the initial version of it!  BMR has been online for over a year now and strictly through word-of-mouth we have built a large and loyal following.  It helps when your portfolio is up over 200%!

We’re continuing with our plans to ultimately build a very unique investment and money-management resource site that goes considerably beyond what we have now.    An important component of this site will always be original research on small and undiscovered junior resource companies, mostly in the Gold exploration space, 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.

We use a combination of fundamental and technical factors in determining the value and potential of a stock.  In terms of fundamentals we look for a company with a superb project supported by strong management.  Management must possess integrity, solid ethics and a determination to succeed and build shareholder value.

At BullMarketRun (BMR) we approach the handling of money from a biblical perspective and this is an important topic we will be sharing with our readers (and listeners) as the site continues to develop.  God wants each of us to succeed financially which is why the Bible teaches so much about money and how to handle it and invest it –  there are literally thousands of verses.  By examining the life of Jesus and reading the Word, we can all become fully equipped to be successful investors and handle money wisely in order to make it work for us.  If it’s the other way around – if you’re a slave to money by being in debt for instance, or if you don’t respect the value of money and spend it foolishly – you’re in trouble and you’ll never be blessed financially.  We have a God who thinks big – He created the universe – and He wants us to think big  in every area of our lives.  He delights in us when we grow our investments (His money that we have been given stewardship of) and an increase of tenfold or a hundredfold is always possible.  Jesus loves what some companies are doing on the CDNX and He wants you to know about them and invest in them with wisdom and discernment.  This all begins, of course, with a personal relationship with Jesus Christ by accepting Him as your Lord and Savior and putting Him at the throne of your life.  It is the most important decision you’ll ever make.

God Bless,

Terry Dyer

Owner/Publisher, www.BullMarketRun.com

Disclaimer:

BullMarketRun.com is completely independent from any companies it covers.  BMR accepts no compensation of any kind from the companies we cover in return for that coverage.   We accept no advertising either.  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 adviser, 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 BMR personnel, writers and their associates may hold or dispose of or trade in positions in any securities mentioned herein at any time.

Owner/Publisher of BullMarketRun.com is Terry Dyer of Langley, British Columbia.

Gold is sharply lower this morning, off $21 an ounce to $1,380 as of 8:30 am Pacific…it fell as low as $1,370…Silver is down 37 cents to $28.28 while the U.S. Dollar Index is up one-tenth of a point to 80.11…the sell-off in Gold can be attributed to nothing more than profit-taking after a new all-time high yesterday…the CDNX is holding up very well on the charts which tells us that Gold’s drop of over $50 an ounce since yesterday is no different than any of the other sharp drops we’ve witnessed in this ongoing bull market…the CDNX is down 28 points at 2089…it’s finding support for now at its 10-day moving average (SMA)…as John pointed out in his CDNX chart Monday, there is also very strong technical support at 2060, just above the 20-day SMA…the winning strategy with the CDNX throughout the year has been to embrace any weakness and right now is no different…this is a healthy minor pullback in advance of what we believe will be a very powerful market over the next few months at least…BMR continues to research new opportunities and we expect to announce one or more additions to our model “Portfolio” in the very near future…our current Portfolio was up 273% for the year through last Friday…Gold Bullion Development (GBB, TSX-V) fell as low as 66 cents this morning before rebounding…it’s currently down 3 pennies at 69 cents…there is an article on GBB in the latest issue of The Northern Miner with a picture of Frank Basa at Hole #53…Seafield Resources (SFF, TSX-V) came out with more news this morning…Seafield has completed three holes already at its highly prospective Dos Quebradas Property, three kilometres northwest of Miraflores where drilling intersected 1.30 g/t Au over 449 metres in one of the initial holes released last Thursday…we’ve stated all along that Dos Quebradas is Seafield’s best target at Quinchia…Seafield is in the process of drilling eight holes there and reported this morning that the first three holes show similar styles of mineralization to an historical hole drilled by AngloGold that returned an interval of 39.5 metres grading 1.67 g/t Au…Seafield climbed as high as 63 cents this morning but has since pulled back to 55 cents, up 1 penny for the day…Currie Rose Resources (CUI, TSX-V) is recovering after dipping as low as 37 cents…CUI is currently at 41 cents, down 4 pennies…bargain-hunters stepped in on the drop to 37…results are still pending from Currie Rose’s Sisu River Gold Property at its Mabale Hills Project in northwest Tanzania…in east central Tanzania, Sidon International (SD, TSX-V) continues to drill its promising Morogoro East Gold Property…Sidon hit a 52-week high of 26.5 cents yesterday on CDNX volume of nearly 17 million shares…the stock is off 1.5 cents at 21 cents in this morning’s weak overall market…bargain hunters should note that there is exceptional technical support for Sidon in the 18 to 20 cent range…we encourage BMR readers to take a look at one of our favorite silver stocks, Great Panther Silver (GPR, TSX) which has pulled back this morning with the weakness in precious metals…GPR touched its 10-day moving average of $2.26 and as of 8:30 am Pacific it’s down 9 cents for the day at $2.42…

Gold has backed off on profit-taking after hitting a new all-time high of $1,432.50 this morning….as of 8:40 am Pacific, the yellow metal is down $10 an ounce to $1,414…Silver has also retreated, falling from nearly $31 an ounce to $30.14 but it’s up slightly for the day…the U.S. Dollar has recovered some of its earlier losses today and is now at  79.60, down just over one-tenth of a point…the CDNX, interestingly, hit 2150 in early trading this morning before pulling back…it’s currently off 1 point at 2127…yesterday, BMR’s technical analyst pointed out in a chart there is a weak band of resistance on the CDNX between 2150 and 2250, so a reaction this morning at the 2150 level was not surprising…however, 2150 to 2250 is not major resistance and the Index in our view should have no problem plowing through that this month…Gold Bullion Development (GBB, TSX-V) is down 2 pennies at 72 cents…GBB is showing very encouraging technical signs at the moment as was detailed in a chart we posted Sunday evening…Seafield Resources (SFF, TSX-V) dropped as low as 54 cents this morning…it has since strengthened and is currently at 59 cents, down 4 pennies…there are several factors that could influence the SFF share price over the near term, so there is likely to be continued volatility…one could try to trade this stock but that will probably prove  difficult and frustrating…we think the best approach with Seafield, if one is to invest in it, is to take a longer-term view – that’s been the successful strategy with SFF this year and requires patience…we see limited downside risk from current levels as there is strong technical support in the low 50’s…the company has an excellent chance of developing a multi-million ounce resource at Quinchia…the initial drill results from Miraflores are encouraging and even exciting but the property we believe has the most potential for Seafield at Quinchia is Dos Quebradas…Seafield’s current market cap of approximately $60 million is certainly not excessive in our view but  it’s important the company picks up the pace of exploration at Quinchia… Greencastle Resources (VGN, TSX-V) is going to benefit from the suddenly improved fortunes of Seafield as we stated in a separate article on Greencastle yesterday…Tony Roodenburg is President and CEO of both companies and we believe some of the “heavy hitters” he brought to the plate to build Seafield will follow him into Greencastle…Roodenburg has made it clear he’s going to get Greencastle much more active in the Gold exploration space…we see a strong possibility of VGN acquiring a fourth Gold project that could be classified as “advanced”…the company is armed with $6 million in working capital and has monthly cash flow in excess of $100,000 from an oil royalty valued at over $5 million by an independent engineering firm a year ago…Greencastle is off half a penny to 38 cents where it appears to have new technical support…Sidon International (SD, TSX-V) has commenced drilling at its Morogoro East Gold Property in Tanzania with good visual observations in the very first hole as reported by the company in a news release this morning…Sidon shot up to 26.5 cents in early trading and has since pulled back on profit-taking…it’s currently at 22 cents, up 1.5 cents from yesterday, on huge volume of 12 million shares…Sidon is now up 340% since we introduced this gem to BMR readers at a nickel last spring…we’re keeping a close eye on Colombian Mines (CMJ, TSX-V) which closed at 92 cents yesterday and is off 3 pennies at the moment at 89 cents…a close above 95 cents would constitute a significant technical breakout on CMJ…the company has a strong portfolio of advanced stage and grassroots exploration projects in Colombia…

The CDNX is strong again this morning, ahead 12 points at 2122 as of 9:55 am Pacific even though Gold has backed off somewhat after trading as high as $1,422.  Everything continues to look very positive, technically, with the CDNX.  John’s quick chart update below is based on Friday’s close.

On Friday the CDNX opened at 2099, dropped slightly to 2098 and then rose and closed at a high of 2110 for a gain of 14 points on volume of 404 million shares.

Looking at the chart we see that the CDNX continues its merry climb toward the next resistance band at 2150 – 2250. This is not major resistance and should only cause the Index to pause for a few days at the most. Two very significant support levels are shown at 1910 and 2060.

The SMA(50) daily moving average is providing bullish support and the Index is not too far above this moving average to be unstable. The daily volume continues to climb.

Looking at the indicators:

The RSI is pointing up at 73% and could move up as high as 88% before becoming too overbought.   The ADX trend indicator has the +DI (green line) at 46, above the -DI (red line) and pointing up.  The ADX trend strength indicator (black line) is flat at 48, indicating a steady bullish trend.   The Chaikin Money Flow (CMF) indicator shows there has been strong buying pressure since October 25, even during the corrective mode – very bullish.

Outlook: This is an extremely bullish market and we see the potential for 3000 on the CDNX within the first few months of next year as we’ve already outlined in detail.  Near-term, there’s a relatively weak resistance band between 2150 and 2250.