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Gold is under pressure again but is underpinned by strong support…as of 8:45 am Pacific, the yellow metal is down $21 an ounce at $1,741…Silver is $1.06 lower at $32.64…Copper has dropped a dime to $3.40…Crude Oil is off $2.06 to $100.53 while the U.S. Dollar Index is down over one-third of a point to 78.02…

Global Gold demand in the third quarter of 2011 reached 1,053.9 tonnes, an increase of 6% compared to the same period last year, according to the World Gold Council…this equates to $57.7 billion, an all-time high in value terms, it said in a statement…the World Gold Council report said the increase was driven by investment demand which rose by 33% year-on-year to 468.1 tonnes, generating record quarterly demand of $25.6 billion…investment demand in Europe reached a record quarterly value of 4.6 billion euros, equating to 118.1 tonnes – a year-on-year increase of 135%…the jump in overall investment demand was all the more impressive given the sharp Gold price correction in September which encouraged a wave of profit-taking among bar and coin investors…virtually all markets saw strong double-digit growth in demand for Gold bars and coins…Chinese jewellery demand was 13% higher year-on-year at 131 tonnes…the bulk of this increase was seen in smaller cities as retail chains expanded their networks to meet increasing demand fueled by rising income levels…China’s growing appetite for Gold as a means of investment saw demand for Gold bars and coins expand by 24% over year earlier levels to 60.2 tonnes…

The CDNX is managing to hold support, at least for now…the Index is off 7 points at 1626, just above its rising 20-day moving average (SMA)…critical support for the CDNX is between 1575 and 1600…some cracks have started to appear recently in the CDNX rally since October 4 but support is holding so far…

Currie Rose Resources (CUI, TSX-V), like many juniors, has had a rough 2011 but we have a long-term chart this morning that brings into focus the potential opportunity with this play now that it’s trading at just 7 cents a share…first off, keep in mind that CUI has been around for more than 40 years and has never gone through a share consolidation…as of June 30, the company had $1.8 million in working capital (cash) and no debt…total shares outstanding at the moment are 89.2 million, giving CUI a market cap of $6.25 million…the stock has been beaten down from a 52-week high of 47.5 cents due to lackluster drill results from two of the company’s Mabale Hills properties (Sisu River and Dhahabu) in northwest Tanzania…however, CUI’s key project in that country is Sekenke, a large land package that surrounds and runs in between two past producing high-grade Gold mines…CUI completed its first-ever drill program at Sekenke over the summer (nearly 3,000 metres) and results are still pending…investors seem to have already discounted the possibility of poor results from Sekenke simply because of what happened at Sisu River and Dhahabu, 200 kilometres to the north…geologically, Sekenke is a more promising prospect given the proximity to the former mines and the identification of numerous quartz reefs of the same type and even larger than those that developed at the old Sekenke and Kirondatal mines…regardless of the upcoming results, though, CUI is still in the very early stages of exploration at Sekenke which will likely be ramped up considerably next year – it’s a large and inviting target…strategically, no matter how promising its properties in Tanzania might be, it would make sense for CUI to add a new project into the mix to generate some fresh excitement and enable the company to drill year-round (heavy winter rains in Tanzania shorten the drilling season there)…so don’t be surprised if CUI pulls the trigger on a project acquisition – just speculation on our part but this company has a 40-year history of doing its best for shareholders…John’s 10-year monthly chart below is quite fascinating and shows that CUI is sitting on strong support…now is the time for patient investors to be bullish, not bearish, regarding Currie Rose as the chart clearly demonstrates…

Gold Bullion Development (GBB, TSX-V) has new life, thanks to some interesting news that came out during yesterday’s trading session…what really grabbed our attention is the location of historical hole 90-01 which underscores the potential of the LONG Bars Zone to the north and at depth….hole 90-01 was drilled nearly 500 metres northwest of GBB’s northeast extension discovery hole #17…that’s like a huge step-out hole, approximately 350 metres north of any previously reported GBB holes in the northern part of the Eastern Extension and 830 metres northwest of GR-10-86 in the south…the historical hole intersected 1.12 g/t Au over 304.36 metres (between 387.90 and 692.26 metres) and included a 23.55-metre section grading 5.46 g/t Au (between 387.90 metres and 411.45 metres)…we don’t know how consistent the mineralization is in that 23.55-metre interval…the only high-grade “spike” reported by GBB yesterday for that hole is 66.86 g/t Au over 1.14 metres between 538.96 and 540.10 metres…nonetheless, this is an important development in the exploration and understanding of the LONG Bars Zone…the area north of hole #17, where there appears to be some intense faulting, has been showing a lot of promise for GBB and tonnage is adding up nicely based on drill results…of course the LONG Bars Zone remains open in all directions, and GBB says it has expanded its core logging and core cutting capacity…SGS Canada has been hired as an independent consultant, replacing GENIVAR, and a 43-101 resource estimate is expected during the first quarter of next year followed by a Preliminary Economic Assessment (PEA)…a total of 78,414 metres have been drilled at Granada over the last two years on top of nearly 30,000 metres of historical drilling…GBB’s last batch of Phase 3 drill results were released in mid-September with half of the 28 holes featuring intercepts of 100 metres or more grading between 0.31 g/t Au and 0.50 g/t Au…this remains a massive project with multi-million ounce potential…we like the fact GBB is trading at only one-quarter of the market cap ($33.6 million vs. $134.5 million) of a comparable project in a more advanced stage, Spanish Mountain Gold’s (SPA, TSX-V) deposit in central British Columbia…John sees some encouraging signs in the GBB chart as shown below…as of 8:45 am Pacific, GBB is unchanged at 20 cents…

Gold Bullion’s Castle Silver Mines IPO is expected to close by mid-December…Gold Bullion shareholders will receive one common share of Castle Silver Mines for approximately every 85 issued and outstanding GBB shares on the distribution record date…as BMR readers know, we’re very bullish on the long-term outlook for Silver and we’re expecting new all-time highs in 2012…in response to a comment from Patrick this morning, regarding a Silver chart article in MoneyWeek, John has produced a 20-year monthly Silver chart that readers should find interesting…

Gold is under pressure today but has bounced back off its lows…as of 8:30 am Pacific, the yellow metal is down just $7 an ounce at $1,774…Silver is 36 cents lower at $34.21…Copper is off 2 pennies at $3.48 while the U.S. Dollar Index is flat at 78.08…crude oil, meanwhile, has moved past $100 a barrel…it’s currently up $2.42 to $101.79…the oil price, as we pointed out Monday, will be extremely important to keep an eye on over the coming days and weeks…while equities have been moving in tandem with oil since early October (especially the CDNX which has tracked crude almost precisely in terms of its percentage gain since the 1306 October low), elevated oil prices threaten an already fragile global economy…the head of the International Energy Agency (IEA) said today that the oil market is tightening and high prices are already hurting growth in developing economies and threaten any economic recovery in Europe…higher oil prices are also negative for Gold producers as oil makes up such a large component of their cost structures…

The situation in the euro zone continues to look bleak…the European Central Bank’s attempts to prop up the Spanish and Italian bond markets failed to fully contain investor concerns over the debt crisis…ECB intervention helped to steady some of Europe’s embattled peripheral debt markets, yet yields have fluctuated throughout the day…Italian10-year yields rose once more above the 7%  mark, but were down 11 basis points to 6.94 per cent by late afternoon in London…in North America, markets are in a tug-of-war between encouraging signs in the U.S. economy and concerns over Europe…how this all plays out over the balance of the year will be interesting indeed…markets do have room to move higher but a January sell-off could be in the cards…

The CDNX is unchanged at 1647…Spanish Mountain Gold (SPA, TSX-V) provided an updated resource estimate for its Spanish Mountain Property yesterday…this is a low grade but high tonnage deposit in central British Columbia with potentially robust economics with Gold at $1,500 or higher…the stock has been a solid performer this year in a difficult market and patient investors have an excellent chance of being handsomely rewarded as John’s chart shows…

As of 8:45 am Pacific, SPA is off 3 pennies at 82 cents…Visible Gold Mines (VGD, TSX-V) enjoyed a solid day yesterday as it gained 3.5 cents on nearly 1 million shares (all exchanges) to close at 24 cents…it’s up another half penny this morning…technically, the stock faces strong resistance between the declining 50-day moving average (SMA) at 27.5 cents and the declining 200-day SMA at 32 cents…in addition, the 300-day SMA has just recently reversed to the downside…while VGD’s geological prospects are good – its Wasamac-area and Joutel properties offer strong upside potential – the recently announced proposed flow-through financing at 30 cents was a disappointment…it was a puzzling move and will likely act as a stock price barrier…in addition, a financing prior to the release of drill results concerns us…

Gold dipped as low as $1,759 this morning but has since rebounded…as of 8 am Pacific, the yellow metal is down $1 an ounce at $1,779…Silver is 20 cents higher at $34.44…Copper is up a penny to $3.50…Crude Oil is 84 cents higher at $98.98 while the U.S. Dollar Index has gained more than one-third of a point to 77.91…

U.S. retail sales rose broadly in October, suggesting the American economy started the fourth quarter with some vigor, and the first drop in wholesale prices in four months pointed to subsiding inflation pressures…

The euro zone economy managed only modest growth in the third quarter of this year, with a rebound in Germany and France failing to dispel fears of a looming recession across the 17-country region…euro zone gross domestic product expanded by 0.2% compared with the previous three months – the same pace as in the second quarter, according to Eurostat, the European Union’s statistical unit…but economists warn that the effects of the escalating euro zone debt crisis, and sweeping fiscal austerity measures across the continent, had yet to feed through and growth would soon go into reverse…there is little doubt the euro zone is facing a recession – the only question is just how severe of a downturn that will be..

John continues to see some encouraging signs in the Copper chart, though the metal faces strong resistance at $3.70…

The CDNX is up 10 points at 1649…the Index is stubbornly holding its ground in the face of considerable overhead resistance…Adventure Gold (AGE, TSX-V) released strong results this morning from Phase 2 drilling at its Pascalis-Colombiere Property near Val-d’Or including 65.1 metres grading 2.7 g/t Au near-surface (hole PC-11-30) in the northernmost extension of the Gold system…other near-surface results included 1.5 g/t Au over 85 metres in PC-11-32 (northernmost extension), 6 metres of 10.9 g/t Au in PC-11-24 (westernmost extension), and 10.1 metres grading 3.3 g/t Au in the southernmost extension…mineralization generally consists of disseminated pyrite in quartz-tourmaline veins and in altered host rocks…this morning’s results certainly confirm and expand the exploration potential of the Pascalis-Colombiere system…Phase 3 drilling will commence once the ground is frozen and the company is also working on a 43-101 resource estimate…we’ll have more on Pascalis-Colombiere this week including pictures from a recent site visit…AGE is up a nickel to 51 cents on light volume…refer to John’s chart in yesterday for a technical update on the stock…Richmont Mines (RIC, TSX) holds the producing Beaufor Mine immediately adjacent to Pascalis-Colombiere and is keeping a close eye on AGE’s exploration results…

RIC at the moment continues to find technical support around the $12 area…a potential opportunity to watch for over the next few weeks is any weakness in the markets that could briefly take Richmont down into the $10 to $11 range…we’re expecting a very bullish updated 43-101 resource estimate for Wasamac in the next month or so that should add additional value to this growth play…even at $12, RIC is a bargain for long-term investors given the company’s robust earnings and production profile…

Spanish Mountain Gold (SPA, TSX-V) has just released a positive updated resource estimate for its Spanish Mountain Gold Property in central British Colombia, and we’ll comment more on that tomorrow…SPA is currently up 2 pennies at 85 cents…

Gold continues to encounter resistance right around $1,800 an ounce…the yellow metal got as high as $1,796 overnight but is now down $8 an ounce at $1,780 as of 8 am Pacific…Silver is 31 cents lower at $34.35, Copper is up a nickel at $3.52, Crude Oil has lost $1.57 to $97.42 while the U.S. Dollar Index has gained two-thirds of a point to 77.45…

None of the world’s major economies, including Canada, will escape a global economic slowdown, according to a new report from the Organization for Economic Co-operation and Development…the OECD issued its composite leading indicator (CLI) report this morning, showing that the rate had fallen for the seventh consecutive month in September, hitting 100.4…in August the CLI was 100.9…the Paris-based organization said numbers were down across the board, and the results for many individual countries were below their long-term averages…overall the news was grim, the OECD said…”Compared to last month’s assessment, the CLIs point more strongly to slowdowns in all major economies,” the OECD said in a statement…

With so much focus on the euro zone crisis recently, Crude Oil has been quietly sneaking up to the $100 per barrel area…there are many factors driving the Oil market including tight supplies and even the possibility of conflict between Israel and Iran…Crude Oil climbed 5% last week to close at $98.99 Friday though it has backed off a bit this morning…since dipping below $80 on October 3, WTI prices have increased almost 28%, twice that of the S&P and matching the jump in the CDNX…so there has certainly been a strong correlation between oil and equities over the last few months…that’s why John has provided an updated chart for us this morning that shows that Oil is now bumping up against resistance after six consecutive weekly advances…if Oil defies the charts and keeps surging, stock markets won’t necessarily continue moving in tandem as Oil prices above $100 a barrel won’t he helpful to a fragile global economy…it’s certainly important, therefore, to keep a close eye on Oil’s direction…

The CDNX opened higher this morning, helped by Cameco’s (CCO, TSX) revised takeover bid for Hathor Exploration (HAT, TSX-V), but it’s now off 2 points at 1639 after the first hour-and-a-half of trading…Adventure Gold (AGE, TSX-V) is unchanged at 47.5 cents after opening at 49 cents…we weren’t overly impressed with last week’s update on AGE’s Meunier-144 joint venture property but what does continue to excite us is the company’s Pascalis-Colombiere Gold Property near Val d’Or…we’ll have more on Pascalis later this week…from a technical perspective, the stock is now facing resistance at its declining 100-day moving average (SMA) at 48 cents…we’ll see what happens…John’s updated AGE chart gives encouragement for both bulls and bears…

A company we continue to like for its property assets (mostly Gold, Silver and zinc) is Abcourt Mines (ABI, TSX-V), though in our view new management is required in order for Abcourt to unlock the value of those assets and increase shareholder value…the stock closed Friday at resistance at 10 cents…John updates the ABI chart below…

We’re pleased to see that GoldQuest Mining (GQC, TSX-V) has now ditched its plans to merge with Takara Resources (TKK, TSX-V)…GoldQuest is also proceeding with a 1,200 metre drill program, scheduled to begin this week, at its promising La Escandalosa Property in the Dominican Republic…GoldQuest has solid long-term potential but the stock has certainly suffered some chart damage in recent months…the 100-day SMA just below 15 cents will provide strong resistance over the short-to-medium term…as of 8 am Pacific, GQC is off half a penny at 9.5 cents…

Markets will be speculating this week on the potential outcome of the U.S. “Super Committee” meetings with that group facing a November 23 deadline to reach a deal to cut U.S. deficits by at least $1.2 trillion over 10 years… Success would send a strong signal to credit ratings agencies and global investors that the United States is taking credible steps to lighten its debt burden…failure would trigger automatic spending cuts of $1.2 trillion that would hit defense and domestic spending…the L.A. Times says the Super Committee is in a “deadlock” and at an “impasse” with the stalemate revolving around precisely the same issues that have plagued Congress all year: Republicans drawing a line in the sand against the new revenues that Democrats insist on, and Democrats writing in blood that they cannot cut entitlements without tax increases…

The yield on Italy’s bonds hit a new euro lifetime high in an auction today when the country managed to sell the full amount it wanted to raise…Italy sold 3 billion euros ($4.08 billion U.S.) worth of five-year bonds at a gross yield of 6.2%, compared with 5.3% in a similar auction in mid-October, according to Reuters data…unpopular Prime Minister Silvio Berlusconi may now be gone, but huge political and economic challenges lie ahead for a technocratic government headed by former European Commissioner Mario Monti…one economist interviewed by CNBC summed it up well…”It is somewhat ironic that the Prime Minister in Italy is Monti…he was a member of the European Commission…he was one of the architects of the system that caused all the problems…why on earth would they put him in place?…it would be a semi-miracle if the solution works,” stated Roger Nightingale of RDN Associates…”In a few days’ time or a few weeks, things will go wrong again, yields will go up and the whole thing will skid into decline…it’s a foregone conclusion most of Europe is already in recession…it is relatively uncompetitive, and it is facing extra bond yields, extra interest rates which of course it can’t live with, and (it) will have slower rates of growth,” he added…

With a public debt totaling around 1.9 trillion euros ($2.6 trillion U.S.), Italy is the world’s third-largest government debtor and unlike Greece, Portugal and Ireland, it’s simply too big to be bailed out within the euro zone…

Fears of a return to recession in Europe were amplified by the morning’s main data release, which showed euro zone industrial production fell 2% in September, reversing an expansion of 1.4% in August…with PMI surveys also indicating contracting in the manufacturing sector, this morning’s numbers highlight the impact of the region’s sovereign debt crisis on the real economy with uncertainty hitting confidence among businesses and households alike…

Chancellor Angela Merkel said today that Europe must move step-by-step towards political union, calling the euro zone debt crisis the continent’s “toughest hour since World War Two”…”The challenge of our generation is to finish what we started in Europe, and that is to bring about, step by step, a political union,” Merkel told the party congress in the east German city of Leipzig…”Europe is in one of its toughest, perhaps the toughest hour since World War Two,” she said…

TSX Venture Exchange and Gold

Some cracks are beginning to appear in the CDNX rally since October 4 and the critical support area is 1575-1600.  The Index got as high as 1675 Tuesday, a 28% gain from the October 4 low of 1306 (just 28 trading sessions), and closed Friday at 1641 for a weekly loss of 9 points.  The Index continues to trade within a resistance band between 1600 and 1700, and just above that 1700 level is a declining 100-day moving average (SMA) which will be very difficult to overcome – not impossible, but certainly a formidable challenge.

John’s updated chart, immediately below, shows some strong support that must hold.  The race is now on to see which technical event occurs first – a reversal to the upside in the 50-day SMA, or a reversal to the downside in the 300-day SMA.  The next two or three weeks are going to be critical for the CDNX.  Given the number of individual stocks whose 300-day moving averages are now in decline (Canaco being an excellent example), the risk of a plunge from current levels has to be considered significant.  Our “big picture” view is that the CDNX has been in a bear market since March which means the move since early October on lackluster volume has likely been a trap.  If we’re wrong, there will still be time to load up on certain opportunities and ride the wave higher.  So for now we remain on the sidelines.  Cash remains King at the moment.  The drop in the Slow Stochastics and the decline in buying pressure are warnings of potential trouble ahead for this market and the broader markets as the CDNX has proven to be a highly reliable leading indicator.

Gold

It was another solid week for Gold which held support at $1,750 on a closing basis and finished Friday at $1,789 for a weekly gain of $35.  The yellow metal met resistance as expected at $1,800 but it’s likely just a matter of time before it pushes through.  The only apparent risk with Gold is an overall market crash that could lead to a sell-off in all asset classes, and no one can predict that.  Even then, Gold’s drop would likely only be temporary as was the case in 2008.

Silver gained 53 cents for the week to $34.66, Copper fell 11 cents to $3.47, Crude Oil jumped $4.73 or a whopping 5% to $98.99 (more on Oil by tomorrow), while the U.S. Dollar Index was unchanged at 76.91.

The “Big Picture” View Of Gold

As Frank Holmes so effectively illustrates at www.usfunds.com, Gold is being driven by both the Fear Trade and the Love Trade.  The transfer of wealth from west to east, and the accumulation of wealth particularly in China and India, is having a huge impact on Gold.

The fundamental case for Gold remains incredibly strong – currency instability and an overall lack of confidence in fiat currencies, governments and world leaders in general, an environment of historically low interest rates and negative real interest rates (inflation is greater than the nominal interest rate even in parts of the world where rates are increasing), massive government debt from the United States to Europe, central bank buying, flat mine supply, physical demand, investment demand, emerging market growth, geopolitical unrest and conflicts, and inflation concerns…the list goes on.  It’s hard to imagine Gold not performing well in this environment.  The Middle East is being turned on its head and that could ultimately have major positive consequences for Gold.

What’s also driving Gold is the weakness of the United States, brought on in no small part by one of the most ineffectual Presidents the nation has ever been saddled with.  America has lost its way and the recent S&P downgrade is both a real and a symbolic reflection of that.  Since the summer of 2009, the U.S. economy has produced a net total of just two million jobs while federal spending has gone through the roof.  Throughout its incredible history, the United States has demonstrated an amazing resiliency and the ability to bounce back from major economic, social and political troubles.  It will do so again but this will take time and a real Commander-in-Chief in the White House by November, 2012.  By then Gold will have climbed another 50% or more.

Lest We Forget

Today in Canada and the United States is a day that has been set aside to honour those that have stood in the face of danger for the freedoms that we enjoy today.  Some of our soldiers have come home with all sorts of scars – physical scars, emotional scars, and mental scars.  Others have not walked off the plane onto North American soil but rather have been carried off in flag-covered coffins.  They have paid the ultimate price.  They have given their lives for freedom.  Here at BMR we hope that you will join us as we remember and honour our men and woman that have served and that are serving in our armed forces.  We are truly thankful.

In Flanders Fields

By Lieutenant Colonel John McCrae, May 1915

In Flanders fields the poppies blow
Between the crosses, row on row,
That mark our place: and in the sky
The larks, still bravely singing, fly
Scarce heard amid the guns below.

We are the Dead: Short days ago
We lived, felt dawn, saw sunset glow,
Loved and were loved: and now we lie
In Flanders fields!

Take up our quarrel with the foe:
To you, from failing hands, we throw
The torch: be yours to hold it high
If ye break faith with us who die,
We shall not sleep, though poppies grow
In Flanders fields.

Terry Dyer

Owner/Publisher

www.BullMarketRun.com

Gold is bouncing back after finding support, on a closing basis yesterday, in the $1,750’s…as of 8:30 am Pacific, the yellow metal is up $18 an ounce at $1,776…Silver is 52 cents higher at $34.55…Copper has gained 7 cents to $3.46…Crude Oil has climbed $1.01 to 98.79 while the U.S. Dollar Index is off three-quarters of a point to 76.84…

Markets are cheering the news that the Italian Senate approved a new budget law today, clearing the way for final approval of the package in the lower house tomorrow and the formation of an emergency government to replace Prime Minister Silvio Berlusconi…the situation in the euro zone remains extremely serious and complex, however, with no “quick-fix” which will keep markets volatile for weeks or months to come…

There was encouraging news on the U.S. economic front this morning…consumer sentiment rose to its highest level in five months in early November as Americans felt better about the economic outlook, a survey released this morning showed…the Thomson Reuters/University of Michigan’s preliminary reading on the overall index on consumer sentiment rose to 64.2 from 60.9 the month before, topping the median forecast of 61.5 among economists polled by Reuters…the survey’s gauge of consumer expectations climbed to 56.2 from 51.8…while respondents were no more positive about the current state of the economy, they were less likely to expect it to worsen in the year ahead, the survey said…the survey’s barometer of current economic conditions nudged up to 76.6 from 75.1…all three main indexes were at their highest level since June…

The CDNX, continuing to trade in a band of resistance between 1600 and 1700, is up 18 points at 1643, bouncing back from yesterday’s intra-day low of 1614…the Venture is underpinned by strong technical support between 1575 and 1600 which needs to hold…volume must also increase significantly for a move through the top of the resistance band (1700) as John has outlined…

We apologize for the abbreviated Morning Musings recently but regular postings will resume Monday following tomorrow’s Week In Review And A Look Ahead…there will be no postings Sunday…

Gold is showing additional weakness this morning…the yellow metal managed to hold support around $1,750 overnight and bounced back as high as $1,777…during the last hour, however, Gold has turned south and is off $25 an ounce at $1,744 as of 7:50 am Pacific…Silver is 66 cents lower at $33.38…Copper has lost a dime to $3.35, Crude Oil has gained $1.14 to $96.88 while the U.S. Dollar Index is off slightly at 77.82…

The U.S. Labor Department said initial jobless claims fell by a slightly more than expected 10,000 to a seasonally adjusted 390,000 in the week ended November 5, the lowest level since April 2…the four-week average of new claims, seen as a better indicator due to the reduced volatility, dropped by 5,250 to 400,000, the lowest level since April 16…

Investors remain focused on events in Europe as the debt crisis in the euro zone deepens…in a crucial test of its ability to avoid a bailout, Italy managed to find buyers today for 5 billion euros of new debt but paid a painful price to get them out the door…investors demanded a yield, or interest rate, of 6.087% on the 1-year bills, the highest since 1997 and up from the 3.57% at a similar auction a month ago…the Italian treasury, however, took some pleasure in learning that demand was strong, at two times the amount on offer…

China’s exports rose at the slowest pace in almost two years in October as Europe’s woes crimped demand, adding pressure on policy makers to support growth in the world’s second-biggest economy…exports rose 15.9% year-on-year, down from 17.1% a month earlier…imports, however,  increased 28.7%, accelerating from a 20.7% pace, showing domestic consumption remains strong…economists at Barclays Capital cautioned that the jump in imports may have been exaggerated by producers taking advantage of the correction in global commodity prices to build inventories of crude oil and copper….official data released this morning howed that China’s copper imports in October stood at 383,507 tonnes, virtually on par with September’s imports, which were at a 16-month high, while imports of iron ore, a key steelmaking ingredient, fell to 49.9 million tonnes, the lowest since February…analysts expect that iron imports will rebound somewhat in coming months as mills restock and steel production picks up during the traditionally busy winter months…

The CDNX, which took a 49-point hit yesterday, is off another 6 points at 1615 as of 7:50 am Pacific…cracks are beginning to appear in this rally and next week may not be pretty…the Index fell below its 10-day moving average (SMA) yesterday for the first time since October 20 when the 20-day SMA provided support…strong and perhaps critical support exists around 1575 with the 20-day currently at 1595…the TSX short ETF’s, the HIX and the HXD, have both held important support and are gaining momentum…Adventure Gold (AGE, TSX-V) and RT Minerals (RTM, TSX-V) were both halted shortly after the opening bell this morning with news now out…AGE, RTM and Lake Shore Gold (LSG, TSX) provided an update on drilling progress at the Meunier-144 Property where deep drilling continues…the possibility of a down-plunge extension of the Timmins Mine and Thunder Creek orebodies still exists given early indications, but the best assay value obtained to date is 2 g/t Au over 1.1 metres from a zone located at a down hole depth of 2,925 metres…more assay results are pending and drilling continues, but assays are going to have to get a lot better than that…John’s chart this morning is on Currie Rose Resources (CUI, TSX-V) which is trading at 7 cents this morning…CUI has been around for four decades (without a share consolidation), so it will survive any turbulence or downturn in the markets…it hasn’t been a good year for CUI, but the company’s Sekenke Project in Tanzania offers strong potential though much more exploration is required…

We apologize for the abbreviated editions of Morning Musings in recent days…Jon’s mother has passed away, after a battle with lung cancer, and he has been attending to various matters…regular postings will resume Saturday…tomorrow is Remembrance Day and Canadian markets are closed…