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Gold is softer this morning ahead of today’s Fed policy statement…as of 6:25 am Pacific, the yellow metal is down $10 an ounce at $1,656…Silver is off 22 cents at $31.83…Copper has retreated 3 pennies to $3.76…Crude Oil is 56 cents lower at $98.39 while the U.S. Dollar Index is up nearly half a point at 80.19…

Dow futures as of 6:25 am Pacific are pointing to a modestly lower open…the Venture Exchange closed down 13 points on profit-taking yesterday to 1576…the Index is looking very strong and has plenty of support, so we view any additional weakness as an opportunity right now…

Fed Could Influence Markets Today

The Federal Reserve is set to issue its latest policy statement at 12:30 pm eastern today, followed by chairman Ben Bernanke’s news conference at 2:15 pm…the Fed is widely expected to keep monetary policy on hold with forecasts expected to show interest rates will be near zero for at least two more years…today’s new conference will include details of where Fed members expect the federal funds rate to be at the end of each of the next three years, and when they expect the first rate hike will occur…

Obama’s Campaign Speech

President Obama’s State of the Union address last night was more of the same from this President – government is the solution to America’s problems, an approach that really goes contrary to American tradition…Obama put very little emphasis on the debt and spoke at length about how government can do this, that and just about everything else at a time when it’s almost broke…how does that make any sense?…people’s expectations of government need to be reduced at this time, not inflated, and individuals need to exhibit more personal responsibility…one certainly can’t expand the scope of government in the United States without a major tax increase…of course Wall Street was blamed for the financial crisis (government certainly could never have contributed to it, could it?) and the “rich” need to cough up more to the government in taxes…quite simply, Obama wants to take from those who have and redistribute it to those who don’t…that’s what all good socialists aspire to do…he did not propose fundamental across-the-board tax reform which is necessary…the 2012 elections will be all about the role of government in Americans’ lives…Obama sees government as a positive force…government doesn’t need to be restrained or limited in his view…that’s very much the same thinking that guided Canada’s Pierre Trudeau, and Canadians are still paying for what he inflicted on this country…the only good thing about Obama’s speech last night was that it paints a very clear choice come November…if the Republicans can get their act together, Obama will thankfully end up being just a one-term President…

Europe – Massive Monetary Easing Required?

Europe needs “massive monetary easing” to get out of its debt crisis, otherwise Greece will likely abandon the euro in a year and a half, famous economist Nouriel Roubini told CNBC yesterday…private investors who lent Greece money, such as banks and investment funds, are meeting in Paris after talks on a debt swap that would change shorter maturity Greek bonds for longer maturity ones to give the country more chances to reduce its debt were inconclusive last week and earlier this week…

Silver

One of our readers was asking about the Sprott Physical Silver Trust (PHS.U, TSX) after our piece Monday regarding Silver after we listened to a presentation by Sprott Private Wealth CEO David Franklin at the Vancouver Resource Show…we’re very bullish on Silver and that was before hearing Franklin who called Silver “the investment of the decade”…anyway, below is a chart from John on the Sprott Physical Silver Trust which recently raised $350 million for a major physical purchase of Silver last week…

Seafield Resources Update

More solid results from Seafield Resources‘ (SFF, TSX-V) this morning from the company’s Miraflores Project in the Quinchia District of Colombia…drill hole #24 intersected 167.75 metres grading 1.05 g/t Au and confirms the continuity of mineralization at depth…another hole, #25, has extended mineralization of the breccia pipe to the southwest, outside of the known resource area…Seafield CEO Cesar Lopez is doing a terrific job with this company and we’re convinced it’ll be a great performer in 2012, especially with a turnaround in the markets…Seafield is also working on its Dos Quebradas Property and we wouldn’t be surprised if the company expands its presence in the Quinchia District or picks up additional land elsewhere…Lopez seems very aggressive and determined to make things happen…

BMR’s Rainbow Resources’ Interview

As mentioned yesterday, BMR has conducted an extensive and revealing interview with Rainbow Resources’ (RBW, TSX-V) President David Johnston…we’ll be incorporating that interview into a major article that’s being worked on now…we threw some tough questions at Johnston and he handled them gracefully and professionally…the bottom line with RBW is this…up until several months ago, the stock was essentially a shell…by acquiring Braveheart Resources, Rainbow’s fortunes have changed dramatically and the trading activity the past couple of months reflects that…Rainbow’s new assets include individuals such as Johnston and well-known and respected Calgary businessman Bob Libin, plus an attractive West Kootenay land package assembled and developed by Braveheart…one of the properties (Ottawa) was the #1 producer in the Slocan Mining Camp in the 1900’s with phenomenal grades (approximately 2,000 g/t Ag)…the International Property, though, could be the best of them all…Johnston says he’s eagerly looking forward to the upcoming 43-101 report on all the properties (which will include historical information) in the very near future…I also got the sense he may have some interesting “irons in the fire” as he clearly stated we can expect Rainbow to be very aggressive in 2012…

Below are a few excerpts from my very lengthy discussion with David Johnston that we’ll be turning into a major article…

About Building A Company

“The most important thing is your people.”

About Values

“Integrity – you have it or you don’t, that simple.  You can’t have a little bit of integrity for one thing, and maybe just so much for another.  You have it or you don’t.”

About Life

“All life is, is solving problems.  Case closed.  That’s all it is.  If you get up in the morning and you got problems to solve, you’re lucky.  And if you don’t have any problems to solve, you should throw yourself on your knees immediately and ask God to give you some problems to solve.  When you get up and you got a handful of problems, just get at them.  Start working on them.  I’m a survivor, my father was a survivor.  Most everyone I hang around with is positive.  Negative people don’t migrate in my direction because I won’t allow them to suck the energy out of me.”

About The International Property

“We now have close to 16 square miles around the area we hope to make a mine.  It has been almost seven years of our own development (through Braveheart).  That property was a significant discovery in the early 1900’s but the Depression, the War, access issues and the crown grants being in the wrong hands prevented development.  Access is now excellent, we have the crown grants and the area all around the crown grants.”

About RBW’s Overall Land Package

“When the oldtimers found the outcrops, when they found the rich veins on the surface, they followed them to the end and took the easy stuff away.  Some of the adits we’ve been in, you can see where they mined and went in with hand tools.  They went right by veins they never touched or bothered with.  They never drilled a single hole, ever.  So none of these areas has been drilled.  The surface has only been scratched.”

About Vision And Going Forward

“Building shareholder wealth is our focus.  We have the right people and the right strategy to do it.  And some fabulous properties.  Just watch.”

Additional Charts

John has three additional charts this morning including this update on Arian Silver Corp. (AGQ, TSX-V) which we first mentioned last week when it was trading in the upper 20’s…the company hopes to produce about 500,000 ounces of Silver this year at its San Jose Project in Mexico and will be updating its 43-101 resources after the current Phase 4 drill program which is nearing completion…so AGQ is currently generating cash flow and could benefit substantially from anticipated higher Silver prices as the year progresses…

Note: John holds a position in AGQ (Jon and Terry do not).

Two other interesting situations, from a technical perspective at least, are Huldra Silver Inc. (HDA, TSX-V) and Hana Mining Ltd. (HMG, TSX-V)…John has charts for both below…

Hulda Silver

Note: John, Jon and Terry do not hold positions in HDA.

Hana Mining

Note: John, Jon and Terry do not hold positions in HMG.

From Vancouver, B.C.

Gold is pulling back slightly this morning on mild profit-taking…as of 6:00 am Pacific, the yellow metal is down $13 an ounce at $1,664 after reaching an overnight high of $1,683…Silver is off 29 cents at $32.06…Copper is down a nickel at $3.75…Crude Oil is 33 cents lower at $99.25 while the U.S. Dollar Index is up one-third of a point at 80.12…

The CDNX enjoyed another strong day yesterday, climbing 18 points to 1589 with volume picking up as well…this market has indeed turned the corner and the rest of this quarter could be quite robust…any weakness at this point should be viewed as an opportunity with the rising 10 and 20-day moving averages (SMA’s) providing strong support…

Dow futures are modestly lower as of 6:00 am Pacific…it’s a big day for U.S. corporate earnings, which should show continued strength, and President Obama delivers his State-of-the-Union address tonight which will be a campaign speech more than anything else…

We fully expect Gold will surge to a new all-time high in 2012 but what it does in the coming days will be very interesting as the yellow metal is right up against a resistance area as John’s chart shows below…buying pressure increased significantly yesterday which is a positive sign…the action in the Venture Exchange strongly suggests that Gold will break through the $1,700 barrier sometime during this first quarter – who knows, perhaps even this week…Gold will make up its own mind if it wants to bust out now or later…

Markets will be closely watching a new Federal Open Market Committee reporting format for any new signs on how long it could be before voting members undertake any monetary policy changes…the meeting begins this morning and wraps up tomorrow…the FOMC is expected to release a policy statement around 12:30 p.m. eastern tomorrow, and Chairman Ben Bernanke is scheduled to hold a 2:15 p.m. news conference…what’s different about the format now is that individual voting FOMC members will be offering their expectations for future interest rate direction…

Germany is open to boosting the firepower of the euro zone’s rescue funds to 750 billion euros in exchange for strict budget rules favored by Berlin in a new fiscal compact for all members of the currency union…the Financial Times reported this morning how Berlin appears to be softening its longstanding resistance to increasing the funds only hours after the International Monetary Fund warned that the euro zone needed more money to build “a larger firewall” to prevent the crisis from spreading to its core economies…

U.S. stocks are trading at their cheapest levels since at least 1990, according to such commonly used valuations as price-to-earnings and price-to-book ratios as well as dividend yield, Bespoke Investment Group says…this realization will lift the S&P 500 Index by 11% to 1400 this year or maybe more, according to the research firm’s 2012 outlook report…“The S&P 500 is currently trading below its historical average P/E and P/B ratios, and these ratios are also at their lowest levels in the careers of a large percentage of money managers,” wrote strategists Paul Hickey and Justin Walters…

Vancouver Resource Conference

The well-attended Cambridge Show wrapped up yesterday and we have important pieces of information from that event to share with our readers beginning with comments yesterday from respected geologist and newsletter writer Lawrence Roulston (Roulston publishes www.ResourceOpportunities.com)…

Roulston quote from presentation at Conference yesterday:

“I’m putting down last Friday as the official turning point in the junior markets. Gold was up, a lot of the companies were up, but in particular one event really demonstrated just how much money is available and how the mood has changed.  One of the companies that we follow, Calibre Mining (CXB, TSX-V), put out some drill results from a project in Nicaragua.  In reality, the results were not a whole lot different than results they had published over the last few months and the last year.  But on Friday those results attracted the attention of investors, the stock traded 25 million shares and the price went from 18 cents to 37 cents in one day.  And in the first hour this morning, it traded another 10 million shares and traded as high as 49 cents.  So back to Jim Letourneau’s question, when’s the last home run, well, the people who bought Calibre a few weeks ago at 10 cents, this morning they could have sold it as high as 49 cents.  So there’s one example of a home run right here.

“Even more to the point, more significantly, what that tells me is that this money that has been sitting on the sidelines is ready to come back into the market.  When they see good news, they will act decisively and in a very big way.  So all of the fundamentals are there.  The potential of a euro collapse, disaster or catastrophe is really priced into a lot of these stocks at these prices.  And if we don’t get that disaster scenario, and I deeply, sincerely believe that we will not get a complete meltdown – we’ll get a muddling through but not a meltdown – and if that’s the case, then people are going to come back, reinvest and re-deploy their money as we’re seeing here.  The share prices at these levels are very, very attractive and represent extraordinary bargains.”

Some of Roulston’s favorites include Alexco Resource Corp. (AXR, TSX), Novagold Resources (NG, TSX), Revolution Resources (RV, TSX-V), Amarc Resources (AHR, TSX-V), Candente Copper (DNT, TSX), Terrax Minerals (TXR, TSX-V), and Yale Resources (YLL, TSX-V)…

BMR Interviews RBW’s Johnston

We’re more convinced than ever that Rainbow Resources (RBW, TSX-V) has started what could potentially become a spectacular move after a lengthy discussion with new President David Johnston…we’re putting that interview together today to share with our readers…Johnston, who’s conducting a video interview this morning with a well-known and respected  individual who covers the mining scene, made a powerful case for his company’s Big Strike Project in the West Kootenays and his overall vision for where Rainbow is headed…a strong group is involved with Rainbow as Johnston has the likes of Jim Decker (Grande Cache coal fame), Bob Libin (Calgary Flames’ part-owner) and Bruce Durham (successful geologist) at his side…RBW is a winner if we’ve ever seen one, and the company’s market cap is just $5 million…

iSign Media Solutions (ISD, TSX-V)

John has an updated chart this morning on an interesting non-resource company we’ve been watching since the spring of last year, iSign Media Solutions (ISD, TSX-V)…

Note: John holds a position in ISD (Jon and Terry do not).

From The Vancouver Resource Show

Gold continues to push higher as a new week begins…as of 5:50 am Pacific, the yellow metal is up $3 an ounce at $1,670 after climbing as high as $1,678…Silver, which staged an important breakout last week, is 13 cents higher at $32.33…Copper has gained another 6 cents to $3.79…Crude Oil is up 93 cents to $99.26 while the U.S. Dollar Index is off half nearly two-thirds of a point to 79.75…

Dow futures as of 5:50 am Pacific are pointing toward a flat open…

The Fed, a steady wave of corporate earnings reports and important economic data will drive the markets this week…there are a dozen Dow 30 companies and about a quarter of the S&P 500 companies reporting in the week ahead, in industries ranging from pharmaceuticals to airlines to energy…fourth-quarter U.S. GDP will be reported Friday and the number is expected to come in around 3% which would be the fastest pace since the second quarter of 2010…this week’s two-day Fed meeting ends Wednesday with a statement, a new forecast and a press briefing by Ben Bernanke…

Europe will also remain of interest, as investors wait for a deal between Greece’s government and private sector creditors…European finance ministers meet today and tomorrow…

Vancouver Resource Show

Today is the second and final day of the Cambridge Show at the Vancouver Convention Centre…yesterday was very busy and one of the highlights today will be a debate on China beginning at 2 o’clock between Frank Holmes and Gordan Chang…we were busy collecting information yesterday and checking on some specific companies…we’ll be doing more of that today…we have plenty of information to share in the coming days…BMR will be conducting an interview today with David Johnston, the new President of Rainbow Resources (RBW, TSX-V), a company that was essentially just a shell until its game-changing acquisition of Braveheart Resources just a few months ago…with respected individuals such as Johnston, Jim Decker (Grande Cache Coal fame), geologist Bruce Durham (several significant discoveries) and well-known Calgary entrepreneur Bob Libin, RBW has a powerful team and Johnston says they are moving forward aggressively on several fronts…we’ll put him on the “hot seat” later today…

One of the most interesting “workshops” yesterday at the Resource Conference was a 30-minute presentation by Sprott Private Wealth CEO David Franklin…it was standing-room only as Franklin put forward a powerful case regarding Gold and Silver…”This is a Gold-plated, pristine entry point for Gold,” Franklin stated, “and Silver is the investment of the decade”…Sprott’s Silver Trust put in a $350 million physical order for Silver last Wednesday which likely contributed to the metal’s breakout…Franklin stated that investment demand alone consumed all of the Silver production in North America last year…he said he doesn’t expect the Fed to unleash “QE3” just yet (inflation expectations have to come down a bit more) but there’s no end in sight to negative real interest rates which is a very bullish underpinning for Gold…the ECB’s unlimited 3-year loans to banks will help ease the euro zone problem and is also bullish for the yellow metal…selling of Gold by these banks during the height of the euro zone’s liquidity crunch last fall was the driving force in Gold’s drop from just above $1,900 to nearly $1,500 an ounce, according to Franklin…

Adventure Gold

Folks, Adventure Gold (AGE, TSX-V) continues to be one of our favorite companies on the Venture and President and CEO Marco Gagnon was very upbeat on his company’s prospects for this year during our brief chat with him yesterday…we’ll have more on AGE later this week but we believe 2012 could be a breakout year for this company, thanks in large part to its Pascalis-Colombiere Gold Property near Val-d’Or…AGE completed a $1.75 million hard cash financing above the market price at the end of December, a very telling achievement…money talks and that speaks volumes about how some investors view AGE and its potential…

Below is John’s updated chart on AGE which appears to be gearing up for a breakout…

Note: John, Jon and Terry do not hold positions in AGE.

Additional Charts – GBB, AGQ, SGC

John has three additional charts to share this morning – Gold Bullion Development (GBB, TSX-V), Arian Silver Corp. (AGQ, TSX-V) and Sunridge Gold Corp. (SGC, TSX-V, a special request from one of our readers)…

We’re convinced GBB put in an important low in December (13 cents) and is on the road to recovery…it hit resistance as expected at 21 cents earlier this month and has backed off to solid support at 16 cents…patience remains the key with GBB but it could easily rebound in a major way in 2012, likely beginning this quarter…

Note: Terry holds a position in GBB (Jon and John do not).

Arian Silver (AGQ, TSX-V) made a strong move at the end of last week and is definitely another turnaround candidate for 2012…John first posted a chart on AGQ Friday morning, and below is an update after Friday’s second straight 3-cent daily gain…

Note: John holds a position in AGQ (Jon and Terry do not).

Sunridge Gold Corp. (SGC, TSX-V) is very active with precious and base metal projects in East Africa…

Note: John, Jon and Terry do not hold positions in SGC.

From the Vancouver Resource Conference

TSX Venture Exchange and Gold

The CDNX posted its fifth consecutive weekly gain, climbing another 35 points to close Friday at 1571.  The Index, which is rising out of an inverted head and shoulders bottom, is up 12% since December’s low of 1399 (December 15) and 20% since the 2011 low of 1306 in early October.  In our view, the wind has been sucked out of the sails of the bear market that began in March, 2011, and a bullish new phase is underway.  John provided ample technical evidence of this in a chart we posted yesterday.  This morning, John has an eye-popping long-term chart showing the Wave 3 channel that we believe the CDNX is now in.  Notice the bullish “W” formation on the RSI (circled) in this 11-year monthly chart.

Don’t be alarmed if there is some minor consolidation in the days ahead.  In this current situation with the CDNX, the 10 and 20-day moving averages (SMA’s) can be expected to provide support on any pullbacks.  A reversal to the upside in the 50-day SMA appears likely within the next couple of weeks which will further strengthen the bullish case.

What all of this tells us is that the ECB, the Federal Reserve, China and others are going to be incredibly accommodating with monetary policy in the year ahead in order to avoid a global economic meltdown.  Money is going to be printed faster than rabbits can make bunnies which of course is bullish for commodities and the markets in general.

Gold

Gold continues to look strong and an assault on the $1,700 area appears imminent as John’s charts have shown.  The yellow metal closed Friday at $1,667 an ounce, a gain of $27 for the week after advancing $75 over the previous two weeks to begin the New Year.

Silver has broken out and jumped $2.43 an ounce for the week to close at $32.20.   Copper gained another dime to $3.73 (very encouraging).  Crude Oil fell 37 cents to $98.33 while the U.S. Dollar Index fell by more than a point to 80.16.

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 that won’t end anytime soon (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.

Rainbow Resources (RBW, TSX-V) enjoyed a powerful week, finally breaking out (as predicted) from a flag formation and hitting a high of 21 cents yesterday before closing at 20 cents.  The jump in weekly volume to 1.78 million shares – the best weekly volume since the stock first went public a year ago – is extremely encouraging and bullish. Below, John has two updated charts on Rainbow with Fibonacci numbers as well.

We see a lot of things in Rainbow we like, from the people involved (including well known Calgary entrepreneur Bob Libin) to the company’s West Kootenay land package to the share structure and RBW’s stated desire to go after additional opportunities in the Gold and Silver exploration space.  This certainly seems like a young company on the rise.

David Johnston, who was named President of the company yesterday (he headed up privately-held Braveheart Resources which was acquired by Rainbow last fall and became a director of Rainbow recently), will get his first major test as President at the Resource Conference in Vancouver (Sunday and Monday) when BMR puts him on the “hot seat”.  Going forward, we are going to be much more aggressive in our interviews with company Presidents and CEO’s as we put them on the spot with tougher questioning (call it interrogation if you will).  The key to making money and finding the best opportunities in a market like the Venture Exchange is making sure the person running the company has the character, the experience, the ability and the game plan necessary to drive the business (and the share price) forward.  In most cases with these CDNX companies, that is simply not the situation.  In fact, it’s incredible how reckless some CEO’s can be.  Many are in the wrong business – they are wealth-destroyers, not wealth-creators.  Many, surprisingly, have no idea how to properly run a business, deal with shareholders or handle the market.  We have seen many examples of that over the last year.  So our trust level is low and the bar is high.

We have performed a lot of due diligence with regard to Rainbow and we’re very confident this is a fabulous opportunity, but Johnston will definitely be put to the test and we will grill him hard for our benefit and our readers’ benefit.  We will fire challenging curve balls at him, not juicy pitches down the heart of the plate, and he (and Rainbow) will be evaluated on how he responds.

RBW Chart #1

RBW Chart #2

Note: Both John and Jon hold positions in RBW with Jon increasing his position Friday (Terry does not hold a position).

Yes, we have turned bullish again on the CDNX after a bear market that started in March, 2011, has clearly run out of steam.  The Index, which is rising out of a classic head-and-shoulders bottom, climbed another 35 points last week to close at 1571.  In a situation such as this, the 10 and 20-day moving averages (SMA’s) can be expected to provide support on any pullbacks.  A reversal to the upside in the 50-day SMA appears likely within the next couple of weeks which will further strengthen the bullish case.

Below is John’s updated CDNX chart with a target of 2000.  We have a fascinating longer-term chart to show tomorrow as part of our Week In Review And A Look Ahead which will be posted from the Resource Show in Vancouver.

We’ve been anticipating a breakout in Silver for a while now, and this past trading week it happened. Silver had a powerful day yesterday and jumped by over $2 an ounce last week, breaking out from the top side of a wedge that in recent months had been restraining the price.  This doesn’t mean Silver is headed straight up like a rocket immediately – it will meet resistance along the way, consolidate, push higher, etc. – but the outlook for 2012 has to be considered very bullish.  A critical support band has held, and ultimately we expect a new all-time high over the next year.  Holding some quality Silver plays in one’s stock portfolio, a mix of exploration companies and producers, makes a lot of sense right now.  It’s the perfect time.  This past week we pointed out some situations for our readers to consider and perform due diligence on.  We’ll be highlighting more in the week ahead.

Below is John’s updated Silver chart after yesterday’s big move.

Gold has pulled back slightly this morning but is off its lows…as of 6:20 am Pacific, the yellow metal is down $4 an ounce at $1,653…Silver, which is looking strong, is off just 2 cents at $30.62…Copper has pulled back 4 pennies to $3.76…Crude Oil is 74 cents lower at $99.65 while the U.S. Dollar Index is up a tenth of a point at 80.22…

Commodities are off to a strong start in 2012 which has surprised many people including analysts such as TD Securities’ Bart Malek (vice president and director, head of commodity strategy rates and foreign exchange research) who in a media interview yesterday stated commodity and financial markets are “defying gravity”…charts are very telling, however, and John’s examination of the important CRB Index is telling us that commodities really do appear to be “turning the corner”…this, of course, is bullish for the Venture Exchange which has also been sending technical signals that its slide since March of last year is quite likely over…below is a very interesting and revealing 21-month weekly chart for the CRB Index…

China’s Shanghai Composite Index, which we have been tracking recently, has enjoyed another good week as it closed up 23 points today to close above the important 2,300 level at 2,319…that’s a two-month high…Copper’s strength recently (reflected in the CRB Index) is also extremely encouraging…the bottom line is that there are numerous positive indicators in the markets right now (commodities and stock indexes) which strongly suggest that what we’re seeing at the moment is not just another rally that’s going to fizzle out…yes, we could have a minor correction in the very near future to test support but that should be considered a normal technical development and a major buying opportunity should it occur…a decisive reversal in the Venture Exchange’s 50-day moving average (SMA) will confirm that an important upside move is in the works, and that could occur by early February…in the meantime, look for the 10 and 20-day SMA’s to provide support…

We have focused a lot on Silver this week, and this morning we have another Silver play that is worth our readers’ due diligence…the technicals for Arian Silver (AGQ, TSX-V) have improved considerably with the stock closing yesterday at 27.5 cents, slightly above strong support at its 1,000-day moving average (SMA)…Arian is focusing its exploration efforts on one of the richest known silver-bearing districts in the world – the Zacatecas State of Mexico…at its flagship San Jose Project, the company has commenced small-scale production using contract mining and toll milling to generate cash flow and to investigate the optimal processing route for an expanded operation in due course…Arian is also working on expanding and upgrading the current 43-101 resource at San Jose (indicated resources are 30 million ounces of Silver, 70 million pounds of lead and 127 million pounds of zinc, while inferred resources are 58 million ounces of Silver, 140 million pounds of lead and 291 million pounds of zinc)…Arian, which has 301 million shares outstanding for a current market cap of $83 million, traded as high as 89 cents last year…it’s an excellent candidate for a strong rebound if the San Jose Project regains momentum and Silver enjoys a solid year as we expect it will…below is John’s chart for AGQ…

Note: John, Jon and Terry do not hold positions in AGQ.

On a non-resource note, the second-most active trader on the Venture Exchange yesterday was Sprylogics International Corp. (SPY, TSX-V) which develops advanced search, analysis, and information display tools and services for the Internet…one of our astute readers brought this one to our attention a couple of days ago…we know nothing regarding the fundamentals of the company or the people involved, but SPY is certainly worthy of some due diligence given its bullish technical posture at the moment as John shows below…

Note: John, Jon and Terry do not hold positions in SPY.

Rainbow Resources (RBW, TSX-V) has just issued news with David Johnston, who headed up the privately-held Braveheart Resources which was acquired last fall by Rainbow, taking over as President of Rainbow…we’ll update the very bullish Rainbow situation tomorrow after reviewing the news in more detail or check for remarks in the comments section this morning…