BullMarketRun.com

TSX Venture Exchange and Gold

The Venture Exchange under-performed the broader markets and gave up 43 points last week, closing at 1251. Bulls can justifiably argue the Index is basing and going through a normal and healthy re-test of the mid-May support zone; bears are looking for a potential drop below the 1215 May 16 low.  The coming week’s trading should provide important answers as to the near-term direction of this market.

Investors will have lots to chew on in the coming days – important election results in Greece, France and Egypt (early indications are, as of 12:00 pm Pacific, that Greece’s two traditional and pro-bailout parties – New Democracy and PASOK – will have enough seats to form a coalition); the G20 meeting; and any potential moves by central banks.  The FMOC meets Tuesday and Wednesday, possibly Bernanke’s last chance to pull another rabbit out of the hat before the upcoming U.S. elections.  This could very well be a “watershed” week for the markets.  For what it’s worth, we believe the markets bottomed in mid-May and a strong rebound is in the works.

Below is John’s updated CDNX chart.  A reversal to the upside in the daily SMA(20) is certainly encouraging.  The Index is showing resilience but what’s needed in the near future for the Venture to really gain some traction, and for more volume to come into this market, is a strong push above 1300.

Gold

Gold recovered all of its losses from the week prior as it jumped $32 an ounce to close Friday at $1,627.  The next significant resistance level is the June high of $1,642. Notice the downtrend line on John’s chart – that’s ultimately what Gold needs to bust through in order to regain some serious momentum.  The COT structure is positive (commercial traders have cut back significantly on their short positions) and we’re about to enter a seasonal period of strength for Gold, so higher prices do appear to be in the works.  But Gold does have some significant technical resistance to work through.

Silver gained 21 cents last week to close at $28.74.  Copper ended a six-week slide, jumping 12 cents a pound to $3.42.  Crude Oil was essentially unchanged at $84.03 while the U.S. Dollar Index fell nearly a point to 81.59.

After an impressive run through the entire month of May, which coincided with oversold stock markets, the Dollar Index has cooled off considerably which suggests traders are expecting some sort of easing move from the Fed.  Looking at John’s chart, there’s a strong probability of more immediate downside in the Dollar Index which suggests the coming week could be positive for Gold and the equity markets – we’ll see.

Finally, here’s another look at John’s long-term Crude Oil chart posted the other day.  This is a very interesting 10-year monthly chart that shows how the big recent drop in WTIC has brought it right down to critical support levels.  If history is any indication, Crude Oil could bounce around this support line for a little while before taking off to the upside during the second half of the year.  A drop below the support line would likely take Crude into the mid-$70 range but OPEC may not want to see it that low.  There is speculation in some quarters that the “screws are being put” to Iran by the Saudis and others which perhaps has magnified the recent drop due also to a perceived global economic slowdown.

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), money supply growth, 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.  Massive central bank intervention appears increasingly likely to prevent a breakup of the euro zone and to kick-start the global economy.  It’s hard to imagine Gold not performing well in this environment.

Gold has traded in a range between $1,621 and $1,636 so far today…as of 5:35 am Pacific, the yellow metal is up $7 an ounce at $1,630…a key level to watch on Gold is the June high of $1,642…a move through that area would give bulls fresh momentum…Silver is up 17 cents at $28.81…Copper is 3 pennies higher at $3.39…Crude Oil is up 18 cents at $84.09 while the U.S. Dollar Index is off slightly at 81.83…

Printing Presses Ready To Be Fired Up

The European Central Bank is on standby to keep banks flush with liquidity if Greece creates fresh financial market turmoil, its president has indicated, joining a global chorus of central bankers pledging support ahead of Sunday’s elections in Greece…Mario Draghi’s comments this morning followed the announcement by the UK’s central bank of plans to pump 100 billion euros into the ailing British economy, hinting at a co-ordinated strategy by the world’s top central bankers…of course the Fed meets next week when it’s quite possible Ben Bernanke may pull the trigger on new measures to help kick-start the U.S. economy…more downbeat U.S. economic data came out yesterday…

Today’s Markets

Asian markets were positive overnight while European shares are showing strength this morning…U.S. stock index futures are up slightly as of 5:35 am Pacific…the Venture Exchange closed up 8 points yesterday to 1252, and all indications are in our view that the May 16 low of 1215 will hold…

We’re also seeing bullish signs in the CRB Index which is often a good indicator of the direction of the CDNX…below is John’s updated CRB chart…notice the “cliff dive” and how oversold the CRB became last month…at the very least, a rebound is underway…

VIX Update

In a chart last month, John showed how the “Volatility Index” might top out in the upper 20’s and that’s exactly what appears to have happened – additional evidence that we saw an important low in the markets last month…below is an updated VIX chart with an almost completed a head and shoulders pattern…

Crude Oil

Another market to watch closely of course is Crude Oil which has been under a lot of pressure over the last couple of months, in part we believe because the screws are being put to Iran…John’;s 10-year monthly chart below is quite interesting and tells us there’s a good chance Crude has been putting in an important bottom at a support line just above $80 a barrel…

Argex Mining (RGX, TSX-V)

The chart these days is looking solid for Argex Mining (RGX, TSX-V), which announced an important breakthrough this week regarding its iron recovery circuit for its patented CTL process (high-purity titanium oxide)…the stock closed yesterday at 74 cents, up 4 cents, and attempted to break out of a 6-week horizontal channel…as always, perform your own due diligence but RGX is looking bullish at the moment from a technical point of view after consolidating following its April high of $1.25…

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

Gold continues to show strength this morning…as of 5:30 am Pacific, the yellow metal is up $4 an ounce at $1,622…Silver is 4 cents higher at $28.90…Copper is flat at $3.34…Crude Oil is flat at $82.63 (OPEC meets later today) while the U.S. Dollar Index is up slightly at 82.18…

Gold has been aided in recent sessions by a rebound in the euro which is now up against a resistance band…it would be very bullish for Gold if the euro could overcome this resistance between 126.20 and 126.80 (note the blue line in John’s chart below) in the coming days…as of 5:30 am Pacific, the euro is relatively unchanged at 1.2569…

The U.S. Dollar Index, meanwhile, continues to unwind its recent overbought condition…more near-term weakness is probably likely based on this 6-month chart…

Today’s Markets

Stock index futures in New York are pointing toward a slightly positive open on Wall Street…Asian markets were under pressure overnight, with China’s Shanghai Composite Index dropping 23 points to 2296, while European shares are also modestly lower this morning…

As The Euro Zone Turns

Spanish 10-year government bond yields hit 7% today, marking the first time in euro-era history the yield has hit the level seen by markets as too expensive for a sovereign to borrow over the long-term…the rise follows a three-notch downgrade to Spain’s credit rating by Moody’s, which took it to within one notch of “junk” status…Spanish yields have risen sharply this week after euro zone ministers agreed last weekend on a rescue plan of up to 100 billion euros for the country’s banks that has failed to convince investors it solves Spain’s financial problems…

Meanwhile, Italy’s three-year borrowing costs spiked to 5.30% this morning…

German Chancellor Angela Merkel is standing firm against calls for Germany to ride to the single currency’s rescue…in a speech to parliament today, Merkel repeated her refusal to back calls for common euro zone bonds and a Europe-wide deposit guarantee scheme for banks…“Germany is strong, Germany is the economic engine and Germany is the anchor of stability in Europe…I say that Germany is putting this strength and this power to use for the wellbeing of people, not just in Germany but also to help European unity and the global economy,” Merkel said…”But we also know Germany’s strength is not infinite”…

The German chancellor warned that there were no “miracle solutions” to the euro zone crisis…Standard & Poor’s says the euro zone has entered “a crucial phase” in which the outcome of Greece’s elections on Sunday and upcoming policymaker meetings “will play a significant role in defining its future direction”…

Spain’s foreign minister took a shot at Germany in comments during a radio interview, according to Bloomberg this morning…“It’s true that some countries including Spain lived beyond our means but that’s because banks from the core decided to make lots of money investing here,” Spanish Foreign Minister Jose Manuel Garcia-Margallo told Onda Cero radio…if Germany “throws one country to the wolves that will affect everyone, so they should take a more long-term view”…

Venture Exchange

The Venture Exchange has had a rough week so far, under-performing Gold and the broader markets…on a positive note, however, CDNX selling pressure as indicated by the Chaikin Money Flow has actually been declining in recent sessions which illustrates the problem at the moment is more a lack of buyers as opposed to aggressive sellers…a double bottom could be in the works which may represent a true turning point – patience is the key at the moment…the Index fell 26 points yesterday to 1244, 29 points above the May 16 low…the ATAC Resources (ATC, TSX-V) chart we showed yesterday is evidence that an important bottom in this market occurred May 16…the next several trading sessions will certainly be interesting…

Alexco Resources (AXR, TSX)

If you’re bullish on Silver, as we are, then Alexco Resources is worthy to watch closely…it’s one of the Silver stocks on our “list”…its rising 1,000-day moving average (SMA) – just above $4.50 – is providing strong support while the stock is well below its rising 500-day SMA which, at the very least, provides a potential trading opportunity…it’s “decision time” in the near future for AXR (will it bust through its downtrend line?) as John points out in this 4-month daily chart below…AXR closed yesterday at $5.20 after hitting a two-year low of $4.27 May 16…

Note: John, Jon and Terry do not hold a share position in AXR.

Gold has traded between $1,607 and $1,617 so far today, after a significant jump yesterday which was a combination of short covering, bargain hunting, technical buying and safe-haven investment demand…Gold appears poised to head much higher as we have been suggesting recently…as of 5:30 am Pacific, the yellow metal is up $1 an ounce at $1,611…Silver is 19 cents lower at $28.78…Copper is up a penny at $3.35…Crude Oil is down 40 cents at $82.92 while the U.S. Dollar Index is down one-tenth of a point at 82.32…

Today’s Markets

Asian markets were strong overnight with China’s Shanghai Composite gaining 29 points to 2319…European shares are a bit lower this morning while stock index futures in New York as of 5:20 am Pacific are pointing toward a slightly lower open on Wall Street after yesterday’s impressive rally…

As The Euro Zone Turns

Spain’s borrowing costs hit a euro-era high yesterday amid sagging investor confidence that Europe can prevent its debt crisis from worsening and wrangling among policy makers over how to implement cross-border banking supervision…the yield on Spanish benchmark 10-year debt hit 6.8% just days after euro zone finance ministers agreed on a 100 billion euro bailout package for the country’s banks…the move was accompanied by rising bond yields in countries deemed less risky, such as Germany and the UK, where market interest rates have been at record lows…it seems investors have concluded that Spain bank rescue is potentially a much better deal for the banks and their shareholders than for the government, its taxpayers and bondholders…even though the money will be funneled to the banks, the government in Madrid will ultimately be responsible for guaranteeing that $125 billion, adding to the Spanish government’s already rising debt load…Gold likes that…

Greeks continue to pull their cash out of banks and are stocking up with food ahead of a cliffhanger election on Sunday that many fear will result in the country being forced out of the euro (can we be so lucky?)…bankers said up to 800 million euros ($1 billion) were leaving major banks daily and retailers said some of the money was being used to buy pasta and canned goods, as fears of returning to the drachma were fanned by rumors that a radical leftist leader may win the election…the last published opinion polls showed the conservative New Democracy Party, which backs the 130 billion euro ($160 billion) bailout that is keeping Greece afloat, running neck and neck with the leftist Syriza Party which wants to cancel the rescue deal…

Plenty of Cash On The Sidelines – Good Sign

With the threat of European debt contagion wafting through the air, American investors are heading for cover, taking their most conservative positions since the depths of the financial crisis…cash now makes up an average 5.3% of portfolios, the most since January, 2009, according to the closely watched Bank of America Merrill Lynch Survey of Fund Managers for June…from a contrarian point of view, this is actually a positive sign for the equity markets – fear was rampant in early, 2009, which turned out to be a fabulous time to invest in the markets…

ATAC Resources (ATC, TSX-V), Calibre Mining (CXB, TSX-V) and Probe Mines (PRB, TSX-V)

John has chart updates on three situations that are looking quite strong at the moment.  As always, perform your own due diligence.

ATAC Resources (ATC, TSX-V)

The action in ATAC Resources (ATC, TSX-V) recently is particularly encouraging as it can be considered a Venture Exchange “bellwether”…and what a great buy it was last month when it dipped as low as $1.90 May 16 when the CDNX plunged to 1215…since then, ATC has jumped by more than 50% as it closed yesterday at $3.15…ATC’s 10, 20, 50 and 100-day moving averages are now advancing which is certainly a positive sign for the Venture as a whole…this is additional convincing evidence that the Venture did indeed bottom out in mid-May…

Calibre Mining (CXB, TSX-V)

Calibre Mining (CXB, TSX-V) made another small but nice move yesterday as it closed up 3 pennies at 22.5 cents on total volume (all exchanges) of 1.3 million shares…keep in mind there is a resistance band between 20 and 24 cents on CXB – a move through 24 cents on high volume would certainly be an interesting and bullish development…the stock still has a rising 200-day moving average (SMA) at 26 cents while the 100-day is now declining and sits at 36 cents…

Probe Mines (PRB, TSX-V)

Probe Mines (PRB, TSX-V) continues to make progress with its multi-million ounce Borden Lake Gold Project in northern Ontario…four drills are currently turning on the property, a geochemical orientation survey is in progress, local and regional geological mapping programs are being initiated, advanced metallurgical testing is underway, and environmental testing continues…Probe gained 14 cents yesterday to close at $1.20 for a market cap of approximately $80 million (about $15 for each indicated and inferred ounce in the global NI-43-101 resource)…

Note: John holds a share position in CXB.  He does not hold a share position in ATC or PRB.  Jon and Terry do not hold share positions in ATC, CXB or PRB.

GoldQuest Mining (GQC, TSX-V) resumed drilling last week within a 700 m x 500 m area at its Romero discovery in the Dominican Republic with the objective of gaining a better understanding of the geometry of this early-stage deposit prior to a more extensive drill program later in the summer…GoldQuest Chairman Bill Fisher granted his first interview on the Romero discovery to BMR June 4 at the Vancouver Resource Show, and below is the second part of his discussion with Jon which we have separated into two separate audio files (Part 2-A and Part 2-B) for easier downloading…

BMR June 4 GoldQuest Interview (Part 2-A)

BMR June 4 GoldQuest Interview (Part 2-B)

Welcome to our site, or at least the initial version of it!  BMR has been online for more than two years and strictly through word-of-mouth we have built a loyal following. 

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.  While we focus very much on the Gold and Silver markets and trends in the global economy, and of course the technical health of the TSX Venture Exchange (CDNX), an important component of this site will always be original research on undiscovered junior exploration companies or small producers, mostly in the Gold and Silver 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.  However, investors must understand that these are still highly speculative situations and entail considerable risk, volatility and unpredictability.  Our stock coverage is for informational and entertainment purposes only and must not be viewed or interpreted as “buy”, “sell” or “hold” recommendations. We are not Registered Securities Advisers. 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 Adviser operating in accordance with the appropriate regulations in your area of jurisdiction. Always perform your own due diligence and please read our disclaimer at the bottom.

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. The Bible teaches so much about money and how to handle it and invest it –  there are literally thousands of verses on how we should handle the money and possessions that God entrusts us with.  By examining the life of Jesus and reading the Word of God, we can all become fully equipped to be successful investors and handle money wisely.  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.  When we handle money from a Biblical perpective (His money that we have been given stewardship of) He will bless our financial decisions and an increase of tenfold or a hundredfold is always possible.  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 (BMR) is completely independent from any companies it covers.  BMR accepts no compensation of any kind from any groups, individuals or corporations for coverage of any company mentioned on this site.  We accept no advertising either.  Our stock coverage is for informational and entertainment 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 Advisers. 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 Adviser 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.

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All statements in BMR’s reports, other than statements of historical fact, may be forward-looking statements. These statements relate to future events or future performance. Forward-looking statements are often but not always identified by the use of words such as “seek”, “anticipate”, “plan”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “predict”, “potential”, “targeting”, “intend”, “could”, “might”, “should”, “believe” and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements.

Gold is down $5 an ounce to $1,591 as of 5:55 am Pacific…Silver is down 4 cents to $28.54…Copper is flat at $3.35…Crude Oil has slipped 11 cents to $82.59 while the U.S. Dollar Index is relatively unchanged at 82.53…

China produced 109.6 tons of Gold in the first four months of this year, up 6.3 tons or 6.13% year-on-year…according to China’s Ministry of Industry and Information Technology, the country’s production hit 28.8 tons in April alone…China remained the world’s top Gold producer for a fifth straight year in 2011 with total output of 360.9 tons…

Today’s Markets

Asian markets were lower overnight with China’s Shanghai Composite Index falling 16 points to 2290…European markets, meanwhile, are slightly higher this morning in choppy trading while stock index futures in New York are pointing to a positive open on Wall Street after yesterday’s sell-off…the market yesterday clearly indicated its continuing unease with the situation in the euro zone following the announcement over the weekend of a bailout for Spain’s banks…a lot of questions remain unanswered about that, and attention is also turning toward Italy while elections in Greece take place Sunday…

Shanghai Composite Index

Interest rate cuts historically have been positive for China’s stock market but the immediate reaction to last week’s rate announcement has not been bullish, perhaps due to various global factors…we’ll see how the Index responds as the week progresses, but the chart below from John shows the Shanghai Composite has broken down from a basing triangle…there is obviously strong support at the December low around 2150…the Chinese do appear to be on track to engineer a soft landing given the most recent economic data and the country’s capacity for continued monetary and fiscal stimulus, a situation that should be market-bullish during the second half of 2012…

Euro Chart

The euro became quite oversold by the end of May and is trying hard to stabilize and gain some traction here in June…below is John’s updated euro chart which we’ll continue to monitor closely in the days ahead…

RBC Has Rosy Outlook For Canada

A new report from the Royal Bank of Canada, to be released today, offers a positive outlook for the Canadian economy, predicting the country will miss the economic storm hammering Europe and other parts of the world, and make significant advances…CTV News reports this morning that RBC predicts Canada’s economy will grow a fairly robust 3.1% this quarter, up from just 1.9% in the first quarter of 2012…for both 2012 and 2013, RBC predicts the economy will record a very respectable 2.6% GDP gain…RBC economists attribute the soft first quarter growth to temporary factors, such as mining and energy shutdowns and reduced demand on utilities due to mild weather…

GoldQuest Mining (GQC, TSX-V)

The second part of our June 4 interview with GoldQuest Mining (GQC, TSX-V) Chairman Bill Fisher will be posted this morning at approximately 8 am Pacific…the second part has been divided into two separate audio files (“A” and “B”) for easier downloading which run about 6 minutes each…below is an interesting excerpt from Part 2-B which tells us that visuals from the core during the step-out drilling phase that started last week will become important…

“There are a whole series of analysts going to see the property next week (the week of June 11), and they’ll see the core coming out of the ground…if there’s anything significant in there, we will be posting it – photographs of the core – on the web site so that we are evenly disclosing this material to the whole market rather than just the selected analysts who have gone to the site…I think we want to keep that open book going…we’ve been very open in terms of our publicity” (Bill Fisher)…

Calibre Mining (CXB, TSX-V)

At the request of some readers, below is a 1-year weekly chart from John on Calibre Mining (CXB, TSX-V) which is working on some very prospective Gold, Silver and Copper projects in northeastern Nicaragua…as always, perform your own due diligence…

Gold has traded in a range between $1,596 and $1,604 so far today…as of 5:55 am Pacific, the yellow metal is down $1 an ounce at $1,594…Silver is up 17 cents at $28.70…Copper has gained 6 cents a pound to $3.36…Crude Oil is 95 cents higher at $85.05 while the U.S. Dollar Index is up more than one-third of a point to 82.20…

Today’s Markets

It’s a positive start to the trading week, thanks to the Spain bank bailout over the weekend (many questions remain unanswered on this, however) and some encouraging data out of China on the heels of that country’s first interest rate cut since the 2008/2009 financial crisis…markets were up sharply overnight with China’s Shanghai Index climbing 24 points to 2306…some European indexes hit four-week highs this morning while stock index futures in New York are pointing toward a modestly higher opening on Wall Street…futures are off their highs, however…

China Is Doing Just Fine

There were encouraging signs from economic data released by China over the weekend, suggesting the Chinese are on track for slower but solid growth this year…fixed asset investment, the second-biggest driver of China’s economic growth in the first quarter after consumption, climbed 20.1% in the January to May period from a year ago, just above forecasts for a 20% rise…imports rose more than expected in May, gaining 12.7% from a year earlier, exceeding expectations of a 5% increase in a Reuters poll, and above the 0.3% annual rise in April (this included a big jump in commodities imports)…exports rose 15.3%  compared to a forecast of a 6.8% increase…retail sales were up 13.8% in May, slightly under expectations…importantly, inflation receded to 3% in May – the lowest in two years – giving authorities a wide berth to use monetary and fiscal tools to prop up the economy…China has recently fast-tracked infrastructure spending such as investment in railways and energy projects which should help the economy over the second half of the year…

Euro Bond Discussions Intensify

In another positive development in the euro zone crisis over the weekend, German news magazine Der Spiegel reported Saturday that leaders of European institutions are working on a comprehensive plan to rescue the euro that would include the issuance of joint euro bonds in a way that could potentially meet the approval of Germany…the news magazine said European Union Commission President Jose Manuel Barroso, European Council President Herman Van Rompuy, Eurogroup head Jean-Claude Juncker and European Central Bank President Mario Draghi are working on plans for a “genuine fiscal union” in which individual member states would no longer be able to independently take on new borrowing…governments would only be able to decide how to spend money that is covered through their revenues, Der Spiegel reported…any country that requires more money than it takes in would have to report that need to the group of euro finance ministers…the magazine quoted four high-ranking EU planners saying this group of finance ministers would then decide which financial desires at which levels were justified and would then issue joint euro bonds to finance these new borrowing needs…

Copper Chart

The Copper price has declined for six straight weeks but a chart from John this morning shows there is hope for a better second half of 2012…Copper is now resting at its monthly SMA(50) which has provided strong support since 2003 with the exception of the 2008 Crash…the monthly SMA(50) was breached slightly in 2010 and 2011 but recovered the following month…what this chart tells us is that the downside in Copper is limited at current levels and the long-term bull market for the metal remains intact…

Venture Exchange

With all the doom and gloom circulating over the last several weeks, the Venture Exchange has held up quite well and appears to be in a 3-wave “Corrective Phase” as shown in the chart below…the target for the current “C” wave is about 1400, so we’ll see if this materializes and then we’ll try to figure out what’s next…one bullish possibility is that this “C” wave could turn out to be the first wave of a 5-wave “Motive Phase” – that’s impossible, however, to predict at this point…what could also emerge from this chart is a bullish inverted head and shoulders pattern, similar to what is forming in the TSX Gold Index…a reversal to the upside in the Venture’s 20-day SMA appears to be in the works for this week and that certainly would be a bullish development…

GoldQuest Mining (GQC, TSX-V)

We hope to post the second part of our interview with GoldQuest Chairman Bill Fisher later today…GoldQuest has resumed drilling at its Las Tres Palmas Project in the Dominican Republic with the company testing the lateral extent of the recent Romero discovery with 25-metre step-out holes…what GoldQuest is hoping to confirm is that Romero is indeed a flat-lying deposit (as other deposits are in the region) which would have significant implications as far as tonnage is concerned…the GoldQuest chart, overall, is looking very bullish but some continued consolidation should certainly be expected to help unwind an overbought technical condition and lay the groundwork for a potential move higher…

Rainbow Resources (RBW, TSX-V)

In the surest sign yet that “something is up” and drilling is right around the corner, BMR is part of a group that has been invited to a Rainbow site visit June 23 and 24…it will begin at the International Property and then swing south to Gold Viking/Ottawa, the Referendum, and then the graphite region…the balance of the group is made up apparently of investors and newsletter writers/analysts, so the word will soon be spreading on the Rainbow opportunity…we’ve already seen Gold Viking/Ottawa, so we’re particularly looking forward to the full day that is planned at the International Property plus an opportunity to get a better understanding of the Referendum Property and the flake graphite situation…