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It’s New Year’s Eve, and a Canada-Russia world junior hockey game is also on this morning, so trading will certainly be lighter than usual today as 2012 comes to a close…

Gold has traded between $1,659 and $1,670 so far on this final day of the year…as of 7:20 am Pacific, Gold is up $6 an ounce at $1,662…bullion will post its 12th consecutive yearly gain, though a modest 6% or so which will be the weakest annual performance since 2008…Silver is up 8 cents at $30.11…Copper is up 2 pennies at $3.59…Crude Oil has gained 30 cents at $91.10 while the U.S. Dollar Index is up slightly at 79.70…

CME Group is lowering margins on U.S. Gold futures early in the New Year…the “initial” margin on new speculative positions for the main 100-ounce Gold contract on the Comex division of the New York Mercantile Exchange will decline to $6,600 from $7,425 currently…the “maintenance” margin for existing speculative positions, as well as all hedge positions, will fall to $6,000 from $6,750…the changes go into effect after the close of business on Wednesday, CME Group said…the announcement, made late Friday, also lowered margins for the exchange operators’ other smaller-sized Gold contracts…

Silver Chart Updates

As usual each Monday morning, John has updated short-term and long-term charts for Silver which is clearly oversold at the moment…of course it could become a little more oversold, but this is really a time to be bullish – not bearish…we’re very excited about Silver’s prospects for 2013…

Silver Short-Term Chart

Silver Long-Term Chart

Today’s Markets

Despite the media’s “fiscal cliff” fear mongering, the Dow is down just 7 points as of 7:20 am Pacific…the TSX has gained 13 points while the Venture is flat at 1202…

The Over-Hyped “Fiscal Cliff”

It might be too much to expect a dysfunctional U.S. Congress (and White House) to come to an agreement by the end of today to solve the so-called “fiscal cliff”, but that “deadline” doesn’t really mean much anyway which is why the mainstream media’s handling of this issue has been so bizarre…in addition, the “fiscal cliff” is wrongly named – it’s no more than a gentle slope, at least in its beginning stages…if the automatic tax increases and spending cuts are allowed to take effect beginning January 1, you’ll of all of sudden see an incredible sense of urgency develop among lawmakers once the new Congress convenes Thursday…most politicians love to vote for a tax “decrease” and that’s what would begin to motivate Congress later this week…if there is no deal of some sort today, our prediction is that within 2-3 weeks most of the tax increases will be rolled back retroactively and a Washington that is still fiscally undisciplined will also reverse the needed spending cuts…the end result is that nothing much will have changed, except of course the debt ceiling which will have to be raised during this first quarter from the current $16 trillion…first and foremost, Washington has a spending problem that it simply doesn’t want to come to grips with…they can continue to kick the can down the road for now, but sooner or later the chickens will come home to roost…that’s when Gold and Silver will both be much higher…

China Skeptics Proven Wrong

China’s Shanghai Composite climbed 36 points overnight to finish 2012 with its first annual gain (3.2%) in three years…the Index also closed at its highest level since June 20…investors cheered good economic news and a plan allowing eligible securities houses, insurers’ asset management units and private equity funds to develop and manage mutual funds…China’s markets will reopen for the new year on Friday, January 4…

China’s economy has ended the year on a strong note after a gauge of its manufacturing sector rose to a 19-month high…the HSBC purchasing managers’ index for December climbed to 51.5 from 50.5 a month earlier, according to figures published this morning…in rising further above the midpoint of 50, the reading signalled an accelerated pace of expansion…although China is still set for sub-8%  growth in 2012, its weakest in more than a decade, momentum picked up noticeably in the fourth quarter thanks in part to an increase in infrastructure spending by the government…“Such momentum is likely to be sustained in the coming months when infrastructure construction runs [at] full speed and property market conditions stabilize,” said Qu Hongbin, HSBC chief economist for China…Hongbin forecast that economic growth could rebound to 8.6% in 2013 which would mark a relatively strong recovery for China despite a sluggish global economy…China has been able to rely on domestic demand to compensate for any external weakness…

China, by the way, has become home to what it says is the world’s longest high-speed rail line, a 2,298-kilometer stretch of metal bisecting the country between the capital Beijing in the north and the southern boom city of Guangzhou…the opening of the line on Wednesday was greeted with much fanfare in state media…the project signals that China hasn’t given up on its rail ambitions despite major setbacks…last year’s deadly train crash near the city of Wenzhou laid bare deep problems with China’s high-speed rail surge…China’s Ministry of Railways has also endured hits to its finances…but the new line will help China reach its goal of having 18,000 kilometers of high-speed railway by 2015…

The new Beijing-Guangzhou high-speed line takes just eight hours, a sharp reduction from the previous 20 on the still-operational old-fashioned track between Beijing and Guangzhou.

In a shortened Christmas trading week, the Venture climbed 24 points over three sessions to get back above the 1200 level on a closing basis (1202) for the first time since December 3.  The fact that the Venture held critical support this month and could not be knocked down to a new 52-week low, despite the pressures of tax-loss selling, weakness in Gold, and mainstream media hysteria over the so-called “fiscal cliff”, is extremely encouraging.  This bodes very well for the first quarter of 2013 and a more healthy market in general throughout the year.  We view the last seven months in particular as a giant bottoming pattern, and the reversal to the upside during the fourth quarter in the 1,000-day moving average (SMA) tells us the trend is changing for the better.  A rising tide will not lift all boats, however, so as always it’s best to stick with companies that have active exploration programs and are enjoying success on the ground.

Below is an updated 7-month Venture chart.  The 1260 level that was touched in late November is key – that’s the current 100-day SMA and it’s also very close to the top of the down trendline that has been in place for a year-and-a-half. Confirmation of a significant new uptrend will occur once the Venture is able to clear that important technical hurdle.  Prior to 1260, there is also some resistance at 1220.

Gold

Gold struggled in December but will still manage to post its 12th consecutive yearly advance, albeit a very modest one – less than 6% which will be the lowest return since 2008 and just a fraction of its nearly 30% return in 2010. But the “big picture” outlook for Gold remains very bullish, in our view, given record low interest rates and a host of other factors including an expanding Federal Reserve balance sheet.  There’s also an important correlation between the Gold price and the U.S. debt ceiling as pointed out by the chief strategist for Morgan Gold, Edmund Moy, in an interview with CNBC:

“Since 2008, Gold has correlated the best with our national debt ceiling,” stated Moy, who’s also a former director of the U.S. Mint (2006 to 2011).  He expects bullion to make a new run in 2013.  “Whenever Gold has been above or below the debt ceiling, it will normalize to wherever that debt ceiling is,” he said, explaining recent correction.  “If Congress lifts that debt ceiling to $18 trillion, I see Gold rising to $1,800.”

Gold has shown strong support around $1,640 and closed Friday at $1,656.  Below is a 6-month daily chart from John.  Note how Gold’s RSI(14) has been in a down trendline since late November – we’ll be watching closely for a break above that down trendline in the near future which would suggest renewed strength.

Silver finished the week at $30.03.  Copper closed at $3.56.  Crude Oil continued to rise, finishing at $90.80, while the U.S. Dollar Index closed at 79.68.

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.  QE3 has arrived, and massive central bank intervention is now taking place 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 $1,654 and $1,664 so far today…as of 8:05 am Pacific, the yellow metal is down $7 an ounce at $1,656…Silver is off 12 cents at $30.02…Copper is flat at $3.58…Crude Oil has gained 37 cents to $91.24 while the U.S. Dollar Index is up slightly at 79.67…

Today’s Markets

Japan’s Nikkei average climbed to a 21-month high overnight as the yen weakened further on rising expectations of aggressive monetary stimulus under new Prime Minister Shinzo Abe…the Nikkei climbed nearly 72 points to close at 10395…it’s now up 23% this year, its best yearly gain since 2005…China’s Shanghai Composite is gaining traction after breaking out above a down trendline that was in place for more than a year-and-a-half…the Shanghai gained 27 more points overnight to finish the week at 2233…

North American markets are under some mild pressure due to the uncertainty surrounding the “fiscal cliff” negotiations…a summit has been scheduled at the White House this afternoon between President Obama and top Congressional leaders, the first such gathering since mid-November…what seems most likely, however, is some sort of a deal in the first few weeks of January (the new Congress reconvenes January 3) when there’s a greater sense of urgency among lawmakers…the “fiscal cliff” is really no more than a “fiscal slope”, so the world is certainly not going to come an end January 1 if Congress and the White House can’t cut a deal by then…

The Dow is down 58 points as of 8:05 am Pacific…the TSX has lost 47 points while the Venture Exchange is down a point at 1196…

The Venture’s big accomplishment this month has been avoiding a new 52-week low despite tax-loss selling, weakness in Gold and the “fiscal cliff” hysteria stirred up by the mainstream media…the last 7 months or so should be viewed in the context of a healthy bottoming process with the market successfully re-testing its June low (1154) and showing tremendous support in the 1150 to 1200 range…below is a 7-month daily chart update from John…

Cap-Ex Ventures (CEV, TSX-V) Chart Update

Cap-Ex Ventures (CEV, TSX-V) has made impressive progress this year in drilling its Block 103 iron ore property near Schefferville, Quebec, but its share price has suffered in part due to a sharp drop in iron ore prices earlier this year (they are now rebounding)…an initial resource estimate from CEV is expected in the first quarter of next year with a preliminary economic assessment expected shortly thereafter…technically, there are signs that 2013 will be better than 2012 for CEV…at the moment the stock is forming a cup-with-handle pattern with strong support in the low 20’s…as of 8:05 am Pacific, CEV is up a penny-and-a-half at 27 cents…

Iron ore prices have risen 60% in four months, prompting one of the world’s biggest miners of the commodity to resume the multi-billion-dollar expansion it put on hold in September when prices crashed…the announcement by Fortescue Metals Group, the Australian miner, marks a dramatic U-turn from the pessimism of only four months ago, when its capital expenditure cutback was seen as a strong signal that the commodities super-cycle led by the industrialization and urbanization of China was all but over…the company announced yesterday that it would resume work in January to triple its production in a A$9bn expansion plan…iron ore, the main commodity used in steelmaking, is seen as a proxy for industrial activity and construction in China, which imports more than half of the world’s seaborne trade…the commodity is critical for the profitability of large mining groups and the world’s top steelmakers…the Financial Times reported yesterday that Colin Fenton, head of commodities research at JP Morgan in New York, warned in a note that it had “become fashionable” to predict the end of the commodities super-cycle because of the capex deferrals that followed the collapse in iron ore prices…he said that those calling the end of the super-cycle were confusing a temporary consumption slump linked to the shorter business cycle with the “conclusion of a multi-decade investment boom” in the natural resources industry…Fortescue, the world’s fourth largest iron ore miner, behind Vale of Brazil, and Anglo-Australian groups Rio Tinto and BHP Billiton, is emblematic of the commodities super-cycle…the company was only founded nine years ago, but has become a top mining group as China’s demand for steel lifted the cost of iron ore from $14 a tonne in 2002 to more than $140 a tonne now…iron ore prices fell in September to a three-year low of $88 a tonne as the Chinese economy slowed, prompting steelmakers to run down their stocks rather than purchasing more raw materials…the price drop, from a record high of $200 a tonne in early 2011, was seen by many as a sign that the commodities super-cycle that propelled economic growth in Australia and other resource-rich countries, was over…since then, prices have rallied to hit an eight-month high of $140.75 a tonne yesterday…

Comstock Metals (CSL, TSX-V) Chart Update

A bottom-fishing opportunity for readers to consider at the moment is Comstock Metals (CSL, TSX-V) which has excellent support at 15 cents…it’s unchanged in early trading today at 18 cents…below is a 6-month daily chart from John…

Note: John, Jon and Terry do not hold positions in CEV or CSL.

Gold has traded between $1,652 and $1,661 so far today…as of 7:45 am Pacific, the yellow metal is unchanged at $1,660…Silver has gained 26 cents to $30.30…Copper is up 4 pennies at $3.57…Crude Oil is off 21 cents to $90.77 while the U.S. Dollar Index is flat at 79.61…this is an abbreviated version of BMR Morning Market Markets due to the holidays…we hope you enjoyed a peaceful and enjoyable Christmas…

U.S. Jobless Claims At Lowest Level In 4.5 Years But Consumer Confidence Dips

The number of Americans filing new claims for unemployment aid fell last week to nearly its lowest level in 4 1/2 years, a possible sign that employers have picked up the pace of hiring…initial claims for state unemployment benefits dropped 12,000 to a seasonally adjusted 350,000, the Labor Department said today…the prior week’s figure was revised to show 1,000 more applications than previously reported…after spiking in the wake of a mammoth storm that ravaged the East Coast in late October, the weekly levels of new claims have now dropped to their lowest levels since the early days of the 2007-09 recession…the four-week moving average fell 11,250 last week to 356,750, the lowest since March of 2008…the news wasn’t so good regarding the consumer confidence index which tumbled to a 4-month low of 65.1 in December from a downwardly revised 71.5 in November, in statistics released this morning by the Conference Board…economists had expected a reading of 70.0, according to a Reuters poll…

U.S. Approaching Its Legal Borrowing Limit, Political Games Continue In Washington

The Treasury Department said yesterday the government would hit its legal borrowing limit by Monday, setting in motion emergency measures to keep the government operating for several more weeks and serving as a reminder that the nation’s budget wrangling could continue well into 2013…the Treasury’s financial maneuvering is designed to put off until February or March the prospect of a full-blown debt crisis…Treasury Secretary Timoth Geithner’s two-paragraph letter to Congress didn’t specify when the emergency measures might be exhausted, blaming the “significant uncertainty that now exists with regard to unresolved tax and spending policies for 2013″…

The White House and congressional leaders have shown no signs of progress toward crafting an agreement to avoid the year-end tax increases and spending cuts known as the “fiscal cliff” which in reality more resembles a “fiscal slope”…politicians will likely end up likely playing the “blame game” (Democratic Senator Harry Reid has already started by blaming the House GOP this morning for “intransigence”)…they likely won’t start getting serious about putting a deal together until the new Congress reconvenes January 3…it’s a lot easier to vote for a retroactive tax “decrease” than a tax hike…there’s really no urgent need to cut a deal by New Year’s Eve despite all the media hype regarding that date…the world as we know it won’t come to an end on January 1…

Today’s Markets

“Fiscal Cliff” jitters have some investors on edge, however…the Dow is down 75 points and the TSX off 25 points as of 7:45 am Pacific…we’re closing out 2012 with a very bullish view of the Venture Exchange which managed to hold critical support this month despite several negative influences including tax-loss selling, weakness in Gold, and the mainstream media’s “fiscal cliff” hype…technically, the Venture is nicely positioned for a strong move to the upside during the upcoming first quarter…the Venture is currently up 2 points at 1188…

TSX Chart Update

We haven’t given a technical update on the “big board” for a while, so below is a 2.5-year weekly chart from John on the TSX…the overall trend has a bullish tone to it (note the bullish divergence between price and the RSI) which leads us to believe there will be a breakout in the near future above the symmetrical triangle…

Shanghai Composite Finally Breaks Out

Technically, the big story in the global markets so far this week is the breakout in China’s Shanghai Composite, a development the mainstream media has missed but that’s certainly not surprising…the Shanghai has been caught in the grips of a down trendline since April, 2011…this Index over the last few years has also closely paralleled the Venture Exchange with the Shanghai typically leading the way…so this week’s breakout is highly significant in our view and also reflects a strengthening of the Chinese economy…below is John’s 2.5-year weekly chart…the Venture needs to surge above 1275 in order to get above its down trendline that has also been in place since early 2011…

The Shanghai closed today at 2206…

Merry Christmas, everyone.

“Today in the town of David a Savior has been born to you; He is the Messiah, the Lord” (Luke 2:11 New International Version).  Some two thousand years ago God sent his son in the form of a baby to live with the people, to love on the people, to be a living message for righteousness, and to be a ransom for the sins of the world. The Christmas season is a celebration of His birth.

This Christmas season the world is still in shock and horror and disbelief regarding the tragedy that recently unfolded in Newtown.  I cried when I heard that so many young lives were taken from their families. This will be a very tough Christmas for many.  I was sent this poem by a friend and I think it is appropriate to share it this Christmas season:

I wish to take this opportunity to thank all of our readers for their loyal support, and I wish each one of you a very Merry Christmas.  May you find time to rest, to relax, to enjoy solitude, to enjoy the company of friends and family, and to celebrate the gift of the season, Jesus Christ.  Merry Christmas.

Terry Dyer

Owner/Publisher

www.BullmarketRun.com

Welcome to our site, or at least the initial version of it!  BMR has been online for three 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 a great deal 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.

Forward Looking Statements:

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.

It’s a quiet day in the markets ahead of Christmas tomorrow…as of 7:30 am Pacific, Gold is up $3 an ounce at $1,660…Silver is 13 cents higher at $30.08…Copper is off a penny at $3.54…Crude Oil is down 23 cents at $88.43 while the U.S. Dollar Index is off slightly at 79.56…

Due to the Christmas holidays, we’re now on an abbreviated schedule at BMR through December 31…we’ll have postings each market day as usual, but they’ll be shorter…our Week In Review And A Look Ahead returns December 29…

Updated Gold Chart

Gold has been knocked around this month by uncertainty over “fiscal cliff” negotiations and year-end liquidation and “window dressing”, but the big picture remains very bullish with Gold on the verge of its 12th consecutive yearly gain…Washington may indeed temporarily go over the “cliff”, which in reality more resembles a slope than a cliff, but a deal very early in the New Year under a new Congress that reconvenes January 3 seems very likely…the end result, in our view, will be more of the same – a country that doesn’t take its debt problem seriously and continues to kick that can down the road at every opportunity…this is bullish for Gold long-term, and so too of course is the Fed’s expanding balance sheet and the fact that central banks around the world continue to add to their Gold holdings…

John’s latest Gold Chart (6-month daily) shows Gold bouncing out of the RSI(14) oversold range at the moment with strong Fibonacci support at $1,648…this chart suggests that over the short-term, at least, Gold is likely to continue trading within this downsloping channel between just under $1,640 and slightly above $1,700…

Peter Schiff, the perpetual bullion bull and sworn enemy of central bankers everywhere, told CNBC’s “Futures Now” this past week that Gold’s recent sell-off is only temporary and that investors should be “patient enough to ride this thing out”…Gold, he said, is one of the few avenues available to investors as a store of value in a world where major central banks are determined to fight economic weakness with ultra-accommodative monetary policy…

“What are you going to do?…you’re going to hold dollars at 0% percent with (Fed Chairman) Ben Bernanke promising to print until infinity?,” the fierce Fed critic asked…”there’s no currency that you can hold and be confident in its future purchasing power…but you can hold Gold, you can hold Silver”…

Schiff added that people “could make a lot of money in Gold and Gold stocks if they are patient…but unfortunately there’s money on Wall Street that’s not patient, and I advise other people who understand the fundamentals” to stay put, he said…

Gold Standard Deviation Chart Puts Long-Term Picture In Perspective

Below is a revealing chart from www.usfunds.com that shows how Gold is in the “Buy Zone” at the moment based on a year-over-year rolling return percentage change in standard deviation terms from 2002 onward…the current pattern, actually, is very similar to the early 2009 period…

Gold Stocks In The Year Following A U.S. Presidential Election

Below is an interesting chart (source: Bloomberg, from www.usfunds.com) that tracks Gold stocks (in this case the XAU) in the year following a U.S. Presidential election…going back to 1985, the XAU historically has increased substantially in post-election federal years, rising 23.4% on average…

Today’s Markets

It’s a shortened day on North American markets which close at 10:00 am Pacific…as of 7:30 am Pacific, the Dow is down 28 points while the TSX is off 17 points…the Venture Exchange, which has held up impressively well this month, is ahead 2 points at 1180 through the first hour of trading…

We wish all of our readers a very Merry Christmas…BMR Morning Musings returns Thursday, December 27…

Gold has traded between support at $1,640 and $1,660 so far today and is currently ralling…as of 7:40 am Pacific, the yellow metal is up $11 an ounce at $1,658…Silver is up 30 cents at $30.22…Copper has gained 3 pennies to $3.55…Crude Oil is $1.54 lower at $88.59 while the U.S. Dollar Index, which found support at 79 yesterday as expected, is currently up over one-quarter of a point to 79.57…

Today’s Markets

One thing about U.S. politics – it’s always a little messy (it was designed to be that way), so in all likelihood the “fiscal cliff” negotiations between Democrats and Republicans (and Republicans and Republicans) will go right down to the wire December 31 (may not even be settled until early in the New Year) after House Speaker John Boehner couldn’t pull enough support together within his own party for a vote in the House on his “Plan B” last night (clearly an embarrassment and a setback for Boehner which explains his Serenity Prayer last night)…Republicans in the House are clearly divided between conservative anti-tax, deficit-cutting hawks and moderates who are more willing to strike a compromise with the President…Democrats have their own hawks who aren’t prepared to touch entitlement programs, or cut them enough…at the end of the day, the market is betting that some sort of compromise will ultimately emerge but one thing appears certain – it will do little to tackle the U.S. debt problem…that is ultimately bullish for Gold…the real “fiscal cliff” for the U.S. is what happens when interest rates start to rise at some point in the future…the federal government is currently paying out $225 billion a year to service the debt at record-low interest rates which won’t stay at these levels forever…long-range budget projections from the CBO (Congressional Budget Office) aren’t worth the paper they’re written on…

Due to the upcoming Christmas holidays, we’re now on an abbreviated schedule at BMR through December 31…we’ll have postings each market day as usual, but they’ll be shorter…there will be no Week In Review And A Look Ahead this weekend but this regular feature will return December 29…

Asian markets were weaker overnight with Japan’s Nikkei average closing below 10000 while China’s Shanghai Composite gave up 15 points to close the week at 2153…as of 7:40 am Pacific, the Dow has retreated 104 points while the TSX is up 19 points…

One has to be encouraged with how the Venture Exchange has performed this month…in the face of tax-loss selling pressures, “fiscal cliff” worries and a drop in Gold, amid overall negative sentiment toward the juniors, bears have not been able to take the Index to a new yearly low…the late June 1154 low has held, and all the bad news since then – especially over the last couple of months – has not been able to drive the Venture below critical support…what does this tell you???????…what this indicates in our view is that there’s an incredible buying opportunity at the moment for selective and patient investors with a bottom likely having been put in…below is John’s last Venture chart before Christmas…a terrific support base has been built over the last six months…technically, as we’ve mentioned before, what has to occur before a new uptrend can be sustained is a move through the down trendline in place since early 2011…that level is approximately 1275…as of 7:40 am Pacific, the Venture is down 3 points at 1177…

Amarc Resources (AHR, TSX-V) and Newstrike Capital (NES, TSX-V)

Amarc Resources (AHR, TSX-V) is considered a good bottom-fishing opportunity for patient investors with plenty of cash and quality projects to explore…below is a look at the technical side of the AHR equation with a 2.5-year weekly chart from John…RSI(14) has been trendling along a bottom around 30 and has recently formed a bullish “W”…AHR is up a penny at 12 cents in early trading…

Below is an updated chart for Newstrike Capital (NES, TSX-V) which continues to advance its 100% owned Ana Paula project in the Guerrero Gold belt of Mexico…an initial resource estimate is expected soon…current support is $1.80 while resistance is at $2.10…

Note:  John holds a position in AHR.