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Gold has traded between $1,673 and $1,686 so far today…as of 6:00 am Pacific, the yellow metal is off $2 an ounce at $1,678…Silver is 8 cents lower at $31.29…Copper is off 2 pennies at $3.59…Crude Oil is relatively unchanged at $93.34 while the U.S. Dollar Index is up nearly one-fifth of a point at 79.86…

Commerzbank Sees Higher Commodity Prices In 2013

Commodity prices could rise “markedly” this year on the back of a global economic recovery and rising inflation fears, a German bank (Commerzbank) stated yesterday…the expansive monetary policy of the central banks is also supporting demand for commodities, they noted…central banks are likely to keep their interest rates low, which will support precious metals in particular…“An interest rate turnaround will not take place in either the U.S. or the euro zone for another two years,” Commerzbank believes…”The central banks are also likely to support the Gold price in other ways: They have bought more than 400 tons of Gold each year for the past two years in the emerging markets, which corresponds to 17% of annual global mining output”…the firm predicts Gold will average $1,875 an ounce for 2013 with prices rising to $2,000 by the fourth quarter…their average 2013 Silver price forecast is $38 an ounce with platinum at $1,825 and palladium at $845…Commerzbank sees London Metal Exchange Copper prices rising about 10% from current levels and said Copper could be one of the best commodity performers this year because of the expected economic growth…

Today’s Markets

Asian markets closed lower overnight on profit taking with China’s Shanghai Composite finishing 16 points lower at 2310…European shares are modestly lower, while stock index futures in New York are pointing toward a mildly lower open on Wall Street after several consecutive positive trading sessions…the Venture closed up 2 points yesterday at 1232…volume will need to pick up for a push through resistance at 1240…

TSX Gold Index Chart Update

Watching for a breakout above the down trendline as shown in John’s 6-month daily chart…

Rainbow Resources (RBW, TSX-V)

Rainbow Resources (RBW, TSX-V) is looking much healthier technically as it gained a penny yesterday to close at 16 cents…growing awareness of the significance of the company’s recent drill results from the Gold Viking Property in southeast British Columbia could further strengthen RBW in the days ahead…we’ll be posting a report on Gold Viking later this morning…

Intertainment Media Inc. (INT, TSX-V) & Strategic Oil & Gas Ltd. (SOG, TSX-V)

As regular readers know, we focus primarily on Gold and Silver and junior exploration companies (and producers) in that space, but from time to time there are other excellent opportunities on the Venture that simply can’t be ignored by investors…two very interesting situations for 2013 in our view are Intertainment Media (INT, TSX-V) and Strategic Oil & Gas (SOG, TSX-V)…John has charts on both below…as always, perform your own due diligence…

Intertainment Media (INT, TSX-V)

Intertainment Media (INT, TSX-V) is off to a strong start, technically and fundamentally, in 2013…the company’s recent acquisition of the Poynt platform and the assets of  Point Corp., together with its partner Avenza Holdings, could turn out to be a pivotal strategic move for INT which was as high as 91 cents early last year before bottoming out at a dime in December…the stock has started 2013 with a bang…INT climbed as 21.5 cents January 7 from a low of 12 cents on the first trading day of the year…the significance of that move is that the stock broke out above an 11-month downtrend line and with force – on high volume…we’ve been waiting for a slight pullback which would test the down trendline, which is now support, and that’s exactly what occurred yesterday as INT fell as low as 14.5 cents before closing at 16 cents…looking ahead, the 50 and 100-day moving averages (SMA’s) appear poised to reverse to the upside at some point during this first quarter which would be a technical catalyst for a fresh blast higher…as always, perform your own due diligence but this appears to be a solid rebound opportunity for 2013…

Strategic Oil & Gas (SOG, TSX-V)

Strategic Oil & Gas (SOG, TSX-V) is an emerging junior oil and gas company out of Calgary that is currently producing at about 3,000 boe/d after successful drilling of numerous wells in 2012…it has an impressive inventory of high impact, light oil plays and the stock has rocketed from just under 50 cents last summer to a 52-week high yesterday of $1.45 (just slightly below its all-time high) on volume of more than 2 million shares…SOG has advanced for six consecutive trading sessions and is currently in overbought territory as shown on John’s 2.5-year chart below, so chasing it now is probably not the wisest strategy thoughof course  it could still become even more overbought…technically, it makes sense that there should be a pullback in SOG in the near future and John has pointed out the support levels…from a fundamental standpoint, the prospects appear to be excellent for SOG to continue on its growth curve – six months or a year from now current levels may look like a bargain…we’ll continue to keep an eye on this one and see where the stock goes as the overbought condition unwinds…

Colossus Minerals (CSI, TSX-V) Chart Update

Below is an interesting 5-year monthly chart from John on Colossus Minerals (CSI, TSX) which has one of the highest grade Gold and platinum group metal deposits in the world with its Serra Palada Project in Para, Brazil…CSI closed yesterday at $4.72…it hit a three-year low of $3.09 last July and its recovery should intensify as the year progresses…

Note: John and Jon both hold positions in RBW.  John, Jon and Terry do not hold positions in INT, SOG or CSI.

Gold is threatening today to close above an important resistance level ($1,672)…as of 5:30 am Pacific, the yellow metal has surged $13 an ounce to $1,681…Silver is up 8 cents to $31.16…Copper is off a penny at $3.61…Crude Oil is off 46 cents to $93.68 while the U.S. Dollar Index has gained one-tenth of a point to 79.64…

London Bullion Market Association (LBMA) Survey Calls For $1,753 Average Gold Price In 2012

The average predictions from the LBMA panel of experts for 2013 for the four precious metals are as follows:

Gold – average 2012 price – $1669;  Average forecast for 2013 – $1753 (up 5.1%)

Silver – average 2012 price – $31.15;   Average forecast for 2013 – $33.21 (up 6.6%)

Platinum – average 2012 price – $1552;  Average forecast for 2013 – $1682 (up 8.4%)

Palladium – average 2012 price $644.33;  Average forecast for 2013 – $744.03.  (Up 15.5%)

Today’s Markets

Japanese shares surged to multi-year highs overnight, with the Nikkei average gaining 78 points to close at 108979 on rising expectations that strong political pressure will prompt the Bank of Japan to deliver bold monetary easing measures…meanwhile, China’s Shanghai Composite jumped another 14 points to 2324, a 6.5-month high after yesterday’s aggressive 3% move…below is an updated Shanghai chart from John…we called for a big move in this market as soon as it broke above a nearly two-year down trendline (the Venture Exchange has been following a similar pattern as the Shanghai, though it hasn’t yet broken above its downtrend line- very close)…a much healthier Shanghai Index, as we’re seeing now, has to be considered bullish for commodities and global equities in general…

European shares are flat as of 5:30 am Pacific…stock index futures in New York, meanwhile, are pointing toward a modestly negative opening for the Dow…the Venture Exchange hit a high of 1247 in the first half hour of trading yesterday before reversing and closing down 10 points at 1230…the 1240 level continues to provide strong resistance but the “big picture” pattern, as John showed yesterday, strongly suggests this level will be overcome in the near future….the overall trend has changed in our view after a brutal market slide that began in March, 2011, but investor patience is critical with this “slow moving train” at the moment…the Venture is currently resting at its 10-day moving average (SMA) while the rising 20-day SMA provides secondary support just above 1210…

U.S. Debt Ceiling Debate – And Gold

The U.S. debt ceiling issue is heating up and the narrative around it has to considered bullish for Gold…over the years there has been a close correlation between the price of Gold and an increase in the debt ceiling…

President Obama was in his usual combative form yesterday as he talked about numerous issues, including the U.S. debt ceiling, during the final press conference of his first term…he said Republicans should not expect a “ransom” in the form of spending cuts for agreeing to increase the debt ceiling…“(Republicans) will not collect a ransom in exchange for not crashing the American economy – the full faith and credit of the United States of America is not a bargaining chip,” he said…Federal Reserve Chairman Ben Bernanke also weighed in to the debate during a speech at the University of Michigan’s Gerald R. Ford School of Public Policy…he said it was vital for Congress to raise the debt ceiling to avoid a potential default, calling it one of the “critical fiscal watersheds” coming up for the government in the next few weeks…

The Republicans say deep spending cuts must be part of any debt ceiling deal, with some of the party’s members in Congress considering allowing the government to shut down, or for the U.S. to delay paying its debts…after the deep recession and subsequent response, on top of deficits accumulated under George W. Bush, the federal government now borrows about 40 cents for every dollar it spends…there appears to be little hope the current administration is serious about significantly changing that trend given the fact that Obama’s agenda from Day One has been to increase the role of government in Americans’ lives (counter to reducing spending) and he has so far been very effective at doing that from Obamacare to other initiatives…

Democratic leaders in the Senate have already given President Obama the green light to attempt to sidestep Congress and take executive action to avoid a default if no agreement is reached to raise the borrowing limit…“We believe you must be willing to take any lawful steps to ensure that America does not break its promises and trigger a global economic crisis – without congressional approval, if necessary,” said Harry Reid, Dick Durbin, Chuck Schumer and Patty Murray, the party’s top brass in the upper chamber, in a letter to the president on Friday as reported by the Financial Times…the move could raise pressure on the White House to consider creative action in the event that lawmakers fail to forge a compromise on lifting the country’s debt ceiling of $16.4 trillion by the end of next month…among the solutions that have been floated are a presidential invocation of the 14th amendment of the constitution – which says the debt of the U.S. “shall not be questioned” – in order to continue borrowing…the White House could also simply decide tax and spending laws take precedence over the debt ceiling constraints if they are in conflict, and keep spending money…Obama yesterday, however, stated, “There are no magic tricks here…there are no loopholes…there are no easy outs…there’s one way to deal with it, and that is for Congress to authorize me to pay for those items of spending that they have already authorized”…the next couple of months are going to be interesting indeed…

Richmont Mines (RIC, TSX) Updated Chart

There is strong fundamental and technical evidence that Richmont Mines’ (RIC, TSX) worst days are behind it after the stock crashed last year from a high of $13 to a low of $2.69, thanks in large part to the fact that the company’s planned production at the Francoeur Mine went bust with the operation being shut down…Richmont is currently trading right around book value and all the bad news seems to be behind it…its flagship Island Gold Mine in Ontario is performing well and resources are increasing there…rising Gold prices will help Richmont immensely, and new CEO Paul Carmel appears to have the company back on track with a sharper focus on project return…”The potential addition of Monique to Richmont’s operating mines is consistent with our strategy to increase the mine life and resources of our Quebec asset base by bringing on additional sources of ore for our Camflo mill,” Carmel stated in a news release last week…”Each additional source must fulfill investment return criteria established by management, and we continue to evaluate other potential asset acquisitions that fit this strategy”…

Below is an updated Richmont chart from John that shows a lot of promise…notice how the share price recently broke above the EMA-20 and has stayed above that level for three straight sessions…RIC closed up a dime yesterday at $3.26…

Alexco Resource Corp. (AXR, TSX)

The worst appears to be over as well for Alexco Resource (AXR, TSX) Corp. which has formed a nice basing pattern in recent months…among other projects, Alexco owns and operates the Bellekeno Silver mine, Canada’s only operating primary Silver producer and one of the world’s highest-grade Silver mines with a production grade of up to 1,000 g/t…AXR’s 100-day SMA is just beginning to reverse to the upside after being mostly in decline for over a year-and-a-half…below is a 1-year weekly chart from John…

Note: John, Jon and Terry do not hold positions in RIC or AXR.

Gold has traded between $1,662 and $1,676 so far today after posting its first weekly advance since November…as of 7:15 am Pacific, the yellow metal is up $4 an ounce at $1,667…the $1,672 level would be an important near-term level for Gold to cross on a closing basis as that’s the EMA-20 and a down trendline on the 6-month daily chart as John pointed out over the weekend…Silver is up 41 cents to $30.85…Copper is flat at $3.63…Crude Oil is off 36 cents at $93.20 while the U.S. Dollar Index is relatively flat at 79.58…the dollar has hit a 10-month low versus the euro…Federal Reserve Bank of Chicago President Charles Evans said the U.S. should keep policy accommodative (see below) to support the economy…

Today’s Markets

Japan’s financial markets were shut for a public holiday but China’s Shanghai Composite surged 3% or 69 points overnight to close at 2312…China’s fourth quarter economic growth is due Friday, and a Reuters poll shows it may have quickened to 7.8% which would snap seven straight quarters of weaker expansion…there is ample evidence that China is on the rebound, and as John showed the Shanghai last month broke above a down trendline that had been in place for nearly two years (the same is about to occur, it seems, with the Venture)…Bloomberg reported that traders were excited today by comments from Guo Shuqing, chairman of the China Securities Regulatory Commission, who said the country could increase tenfold the size of two programs that allow investors to buy securities on domestic markets…European shares are off their session highs in choppy trading, while the Dow is down 16 points as of 7:15 am Pacific…the TSX is up 17 points to 12619 while the Venture Exchange is up a point at 1241 after touching 1247 in the opening minutes…1240 is important resistance as we have pointed out…a couple of consecutive closes above 1240 on increased volume would certainly be bullish for the Venture…investor patience with this very “slow moving train” at the moment is important…

Detailed Venture Chart

The construction of John’s 3-year CDNX weekly chart below is different from the usual in that the indicators RSI(14) and CMF(20) are placed behind the Index for comparative purposes and the weekly volume indicator is separate from the chart instead of being an overlay for reasons of clarity…the main purpose of this chart is to determine where the Venture is in its cycles and what we can expect in 2013…

When examining a chart, the first items to look for are patterns, especially with regard to support and resistance…on the chart below we see a double bottom formed in June/July and December, 2012, creating a strong base…this base is essential to support any sustainable move to the upside…next, look at the 3 mauve loops…each one shows that RSI(14) and the Index reverse before the CMF(20)…at the present time both the Index and RSI have reversed but CMF has shown no upside move…

On the volume indicator, the first 3 loops show that strong Index moves are accompanied by increasing weekly volumes above the 60-day SMA…it’s interesting to note that last week’s volume of 357M is close to the level at the start of the bullish move in August, 2010…also, the saturation volume occurred around 1 billion shares in February, 2011…thus, there is plenty of room for a volume increase to support a move up…

The Slow Stochastics, a momentum indicator, shows that up momentum is increasing and the %K is at the same level of 31% as it was in August, 2012, when the Index was also at 1240…

The ADX trend indicator always lags momentum indicators because it takes time to establish a trend…we see that both the -DI and ADX(line) are in decline, showing that bearishness is dissipating…

So where does the CDNX stand at the moment?

1. Both RSI and Slow Stochastics have reversed and show increasing up momentum – bullish;

2. Index has reversed and held the up move for the last 3 weeks – bullish;

3. Volume has increased in each of the last 3 weeks and closed last week above its 60 Day SMA – bullish;

4. CMF has not reversed as yet, but as shown it usually lags the momentum indicators…watch for an increase which will mean that more money is flowing into the CDNX – bullish;

5. There has not been a +DI/-DI crossover on this 3-year weekly chart yet to indicate a trend reversal – watch for it.

The above explains why we are bullish regarding the CDNX for 2013 and as this first quarter progresses…another important factor to consider (not shown on the chart) is the reversal to the upside during the fourth quarter last year in the 1,000-day moving average (SMA), an event that typically indicates a major trend change…

TSX Chart Update – Breakout Above Symmetrical Triangle

We’ve been watching for this event for a while, and it just recently occurred – the TSX has broken above a symmetrical triangle which is clearly a bullish development…the Index closed Friday at 12602 and now appears poised to take a run at the early 2012 high of 12789…

6.5% U.S Unemployment Level Not Likely Until Mid-2015 – Evans

The U.S. economy is expected to grow by 2.5% in 2013, improving to 3.5% growth in 2014, top Fed official Charles Evans said today…he also forecast the U.S. unemployment rate would be 7.4% this year, easing to about 7% in 2014…”One good indicator of labor market improvement would be if we saw payroll employment increase by 200,000 each month for a number of months…we’ve been averaging about 150,000, but it’s been very uneven…we need a higher pace of employment growth and less volatility in that pace,” he said…the creation of 1 million jobs over six months would be a “substantive” improvement, but bringing unemployment down to the key level of 6.5 percent was likely to take much longer, probably until mid-2015, he said, speaking at the Asian Financial Forum in Hong Kong…the Fed’s decision last year to tie monetary policy to specific economic conditions should help boost the recovery without letting inflation take hold, said Evans, a chief architect of the policy…it also provides additional accommodation by assuring markets that rates will remain low even after the economy perks up, he said…”Given more explicit conditionality, markets can be more confident that we will provide the monetary accommodation necessary to close the large resource gaps that currently exist,” he stated…”Additionally, the public can be more certain that we will not wait too long to tighten if inflation were to become a substantial concern”…

Silver Chart Updates – Short-Term & Long-Term

As usual, below are John’s Monday morning Silver chart updates…interestingly, the U.S. Mint sold a massive 3.9 million ounces of Silver in the first few days of 2013, already surpassing the entire December total of 1.64 million ounces…

Silver Short-Term Chart

Silver Long-Term Chart

One thing that is significant about this chart is the RSI(2) which is at one of its lowest levels in the past four years…we view this as a bullish sign for the balance of the first quarter…Silver has always proven to be primed for a strong move up whenever this indicator falls below 30 on this long-term monthly chart…

Probe Mines (PRB, TSX-V)

Probe Mines (PRB, TSX-V) continues to produce excellent results from drilling at its Borden Lake Gold Project near Chapleau, Ontario…the company’s most recent update came January 8…technically, Probe could be ready for a significant move higher in the near future given the look of this 2-year weekly chart…as of 7:15 am Pacific, PRB is up a penny at $2.19…

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

TSX Venture Exchange and Gold

The Venture Exchange climbed for the third straight week, posting a gain of 12 points to finish at the technically important 1240 level where the Index is again fighting a down trendline in place for nearly two years.  Friday’s market action was evidence that the Venture is about to overcome this down trendline imminently.  Gold was weak Friday, down more than 1% intraday, and Copper slid a nickel, yet the Venture managed to close unchanged for the day at 1240.   RSI(14) is climbing and the trend is bullish as shown by the ADX indicator with the +DI having crossed significantly above the -DI for the first time since mid-August in John’s 7-month daily chart (see below).  Volume does need to increase but we suspect it will this coming week given the bullish technical signs we’re seeing.  Once the Venture moves through 1240, the next major resistance is around 1260 where the 100 and 200-day moving averages converge.  Folks, this market has turned. You can see it just by examining the chart over the last eight months (extreme negative sentiment, the basing pattern, the double bottom, etc.).  Yes, the train is finally moving in the right direction albeit very slowly at the moment.  That will change in due course as the Venture crosses key technical levels.  Continued patience is important, but getting positioned now in quality companies that are going to be aggressive in 2013 should reap huge rewards as the year progresses.  Don’t make the mistake of waiting until everyone has jumped on the bandwagon.  Get in ahead of the crowd.

Global Markets On The Move

The technical similarities in recent years between the Venture Exchange and China’s Shanghai Composite are quite remarkable, as John’s comparative charts have shown, and the Shanghai recently broke out of its down trendline which was also in place for nearly two years.  So that’s another reason we’re so hopeful regarding the Venture at the moment.

Investors this past week poured the most money into equity funds in more than five years, as global shares surged and a compromise deal on the U.S. “fiscal cliff” boosted confidence.  Net inflows into equity funds monitored by EPFR Global (they track fund flows and asset allocation data) hit $22.2 billion in the week to January 9 – the highest since September, 2007, and the second highest since comparable data began in 1996. Record inflows into emerging market and world funds drove much of the expansion.  The figures capped a week during which global equity indices hit multi-year highs, encouraging speculation about a “great rotation” this year out of safe, recession proof assets such as government bonds and into equity markets.  “It has certainly got something of that look about it,” said Cameron Brandt, EPFR research director.  “It is broadly based with strong flows into equities from retail investors and into actively managed funds.  It has a different feel to it than other recent spikes in flows into equities.”

After a strong start to the year, the S&P 500 hit a five-year high this past week.  In London, the FTSE 100 ended the week at 6122, taking it to levels last reached in May, 2008.  Its 3.8% surge over the first full trading week marked the best start of any year since 1999.  The FTSE All-World index finished at 231, its highest level since May, 2011.

Gold

Gold was up $6 for the week to close at $1,663, putting it right in between strong Fibonacci support at $1,648 and resistance at $1,672 (the EMA-20 and a down trendline in the 6-month daily chart).  RSI(14) has been trending higher since mid-December and other indicators (SS and ADX) are encouraging, so we believe the likelihood of an upside breakout significantly exceeds the risk of a move in the opposite direction below support.  Strength in the Venture suggests there are good things in store for Gold as the first quarter continues.

Chinese Gold imports from Hong Kong almost doubled in November on a month-over-month basis as expectations of an economic recovery and more attractive prices spurred Gold purchases. Mainland China purchased 90,764 kilograms, including scrap and coins, compared with 47,478 kilograms in October.  Meanwhile, the U.S. Mint sold a massive 3.9 million ounces of Silver in the first few days of 2013, already surpassing the entire December total of 1.64 million ounces.

Japan announced a $117 billion fiscal stimulus plan a few days ago and pressure is being exerted on the Bank of Japan to do more quantitative easing and set an inflation target above 2%.  These actions show the global easing cycle is far from over, a bullish factor for Gold and commodities in general.

Silver gained 22 cents for the week to close at $30.44 (John will have his usual short-term and long-term Silver charts Monday morning).  Copper closed down a penny at $3.64.  Crude Oil gained another 47 cents to finish at $93.56 while the U.S. Dollar Index got hammered, losing almost a full point to close at 79.55.  Support is at 79 but a crash through 79 at some point during this first quarter is appearing increasingly likely given the bearish head-and-shoulders top that has been forming in recent months and is nearly complete.

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 keep the euro zone intact and to kick-start the global economy.  It’s hard to imagine Gold not performing well in this environment.

Welcome to our site, or at least the initial version of it!  BMR has been online for more than 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.

Gold has traded between $1,666 and $1,678 so far today…as of 6:20 am Pacific, the yellow metal is down $2 an ounce at $1,673 after yesterday’s strong move to the upside…Silver is off a dime to $30.76 cents…Copper is down 3 pennies to $3.66…Crude Oil is 66 cents lower at $93.16 while the U.S. Dollar Index has fallen another one-third of a point to 79.45…

Excellent article at www.mineweb.com this morning regarding how an increasing number of farmers in India appear to be gradually moving away from Gold to investing in Silver and real estate…

U.S. Dollar Chart Update

The U.S. Dollar Index got hit hard yesterday, and it’s suffering again this morning…it doesn’t surprise us that the greenback has been struggling over the last several months given the chart pattern below (2.5-year weekly chart from John)…the right shoulder of a head-and-shoulders top continues to form…the risk of a break below important support at 79 during this first quarter has to be considered high…such a development would be be bullish for commodities and the Venture Exchange…

Japan’s New Government Turns On The Stimulus Taps

Japan’s $117 billion economic stimulus package is a positive start to revive a frail economy…but many analysts believe the government needs to follow this up with long-term structural changes and the central bank has to chip in with some bold moves – otherwise, disappointment is sure to follow…faced with an economy in recession, Japan’s new government has unveiled the country’s biggest spending boost since the financial crisis and one it hopes will boost economic growth by 2 percentage points and create 600,000 jobs…Japan’s economy, the world’s third largest, has contracted for two quarters running, pushed into a recession by weak global demand for its exports…”Japan’s economy has been very weak over the past couple of quarters and some stimulus is necessary to get the growth rate up at least over the near term,” Thomas Byrne, senior vice president at Sovereign Risk Group, Moody’s Investors Service, told CNBC…”Other things are necessary to keep the growth rate up over the longer-term though”…Shinzo Abe, who became Japan’s new prime minister last month after his Liberal Democratic Party was returned to power with a comfortable election win, has promised to revive the economy and urged the central bank to introduce aggressive monetary easing and double its inflation target to 2%…

Today’s Markets

Asian markets were mixed overnight with Japan’s Nikkei average gaining 149 points to 10802 while China’s Shanghai Composite retreated 40 points to 2243 on some healthy profit taking that snapped a five-week winning streak…China’s annual consumer inflation rate accelerated to a seven-month high of 2.5% in December on rising food prices…China reported superlative export data Thursday, and all indications are the economy there is revving up significantly – defying last year’s doomsayers…

European shares are mixed today while stock index futures in New York as of 6:25 am Pacific are pointing toward a flat open in New York…the Venture Exchange closed at 1240 yesterday, the top of a down trendline that has been in place since early 2011…1240 would be a significant level for the Index to overcome…China’s market broke out of its down trendline from early 2011 a few weeks ago, and upside momentum quickly accelerated…

Touchstone Exploration Inc. (TAB, TSX-V)

An oil and gas play that appears to be on the rebound in 2013 is Touchstone Exploration Inc. (TAB, TSX-V) which had one of its highest volume days ever on Wednesday (2.5 million shares)…while the Venture itself is just shy of breaking above its nearly two-year down trendline as mentioned above, many individual stocks have already done so including Touchstone this week…below is a 2.5-year weekly TAB chart from John…TAB closed up for the fourth consecutive session yesterday and will likely encounter near-term resistance at 30 cents…this is one to keep on the radar screen…

Volta Resources (VTR, TSX-V)

Volta Resources (VTR, TSX-V) has released an updated NI-43-101-compliant mineral resource estimate for its West Afican Kiaka Gold project (southern Burkina Faso)…Ouagadougou in southern Burkina Faso…the update follows completion of an additional 233 holes (38,602 metres) drilled in Phase 4 at the Kiaka Central area…the total Kiaka project hosts over 10 million ounces in measured, indicated and inferred resources as detailed by the company yesterday…the stock closed up a nickel on the news, putting it above its 50-day moving average (SMA) for the first time since late September…below is an updated 6-month daily chart from John…the trend turned bullish in late December…

Wildcat Silver (WS, TSX)

We haven’t looked at Wildcat Silver (WS, TSX) for a while but it put in a nice double bottom late last month, when no one wanted to buy it, and has climbed 40% since then…check out their news release yesterday which included updated drill results from the company’s Hermosa Property in Arizona…

Note:  John, Jon and Terry do not hold positions in TAB, VTR or WS.

Gold is firming up today, thanks in part to a stronger euro and a weaker U.S. dollar…as of 7:55 am Pacific, the yellow metal is up $18 an ounce at $1,676…Silver has gained 38 cents to $30.74…Copper is up 4 pennies to $3.68…Crude Oil is 83 cents higher to at $93.83 while the U.S. Dollar Index has plummeted two-thirds of a point to 79.97…

Indian Gold Imports Surge

The Indian government’s efforts to control Gold imports and the overall hunger for Gold by a majority of its population suffered a setback as imports surged on the first week of this year…traders have imported between 25-30 metric tons in the past week compared to five to seven metric tons in the previous few weeks, said Prithviraj Kothari, managing director of Ridhi Sidhi Bullion Limited…analysts attribute the sudden rise in Gold imports to brisk buying by traders as they rush to place orders ahead of an expected rise in the import tax…

Euro Zone Recovery Seen In Second Half Of 2013 – Draghi

The European Central Bank said on Thursday that recent economic surveys and indicators had shown signs of stabilizing, suggesting an improved picture later in the year…”The economic weakness in the euro area is expected to extend into 2013,” ECB President Mario Draghi said at a news conference…”Later, in 2013, economic activity should gradually recover…several indicators have broadly stabilized, albeit at low levels and financial market confidence has improved significantly,” he said…Draghi was speaking after the ECB held its main interest rate at 0.75%…Draghi reiterated the ECB’s view that inflation, which held at 2.2% in December, would fall below 2% during the course of this year…

Strong Economic Data Out of China Exceeds Expectations

China’s exports surged in December, blowing away analysts’ expectations, while credit data also showed some bright spots…China’s December exports jumped 14.1% from a year earlier, up from a 2.9% gain in November, while imports were up 6%, following on from zero growth the previous month, according to data released today…the blockbuster pickup in shipments helped widen the trade surplus to $31.6 billion in December, trouncing estimates and ballooning sharply from a $19.6 billion surplus in November…economists polled by Dow Jones Newswires had estimated a trade surplus of $19.6 billion, on export growth of 4.6% and import gains of 3.3%…

U.S. Jobless Claims Rise Slightly

Weekly applications for U.S. unemployment benefits ticked up slightly last week, the latest sign of stability in the job market…the Labor Department said today that applications rose 4,000 to a seasonally adjusted 371,000, the most in five weeks…the previous week’s total was revised lower…the four-week average, a less volatile measure, increased 6,750 to 365,750, after falling to a four-year low the previous week…

TSX And Venture Statistics

The TSX and TSX-V have released their 2012 listing and financing results…the TSX welcomed 132 new listings last year, down from 199 in 2011, while the Venture welcomed 161 new listings, down from 216 a year earlier…TSX-listed companies raised $21.6-billion in IPO’s and secondary offerings, compared with $26.4-billion the year earlier…financings on the Venture dropped by almost half, with companies managing to raise only $4.1-billion, down from $7.1-billion in 2011…

Today’s Markets

The Venture is threatening to push through important resistance at 1240, the top of a down trendline in place since early 2011…as of 7:55 am Pacific, the Venture is up 11 points at 1240 on an uptick in volume as well…the TSX has jumped 50 points while the Dow is up 15 points…the TSX Gold Index of course is strong (up 6 points to 295) given Gold’s performance today…Asian markets were in the green overnight with China’s Shaghai Composite gaining 8 points to 2284…

Below is an interesting 4-year monthly comparative chart showing the Venture, Gold and the Dow…

Richmont Mines (RIC, TSX) Chart Update

Richmont Mines (RIC, TSX) is showing signs of recovering after basing in the $3 range the last couple of months…as of 7:55 am Pacific, RIC is up 9 cents to $3.32…RIC has just received mining permits for its Monique Gold Property near Val d’Or and will soon extract a 5,000 tonne bulk sample…Richmont had a difficult 2012 on the operating side but the worst of its problems appear to be over, and the company is enjoying success with its Island Gold Mine in Ontario…below is a 4-year weekly chart from John…note that the next major resistance is the down trendline at $3.80…

Mineral Mountain Resources (MMV, TSX-V) Chart Update

We continue to like the prospects for Mineral Mountain’s (MMV, TSX-V) Holy Terror Gold Project in South Dakota…the stock found strong support in December just above its rising 200-day moving average (SMA), and has resumed its uptrend…below is a 2.5-year weekly chart from John…

Mart Resources (MMT, TSX-V) Chart Update

Note: John, Jon and Terry do not hold positions in RIC, MMV or MMT. 

Gold has traded between $1,658 and $1,667 so far today…as of 6:20 am Pacific, the yellow metal is down $1 an ounce at $1,660…Silver is off 13 cents at $30.28…Copper is up 3 pennies at $3.67…Crude Oil is up slightly at $93.29 while the U.S. Dollar Index has jumped one-third of a point to 80.61…

This is an abbreviated edition of Morning Musings due to travel and special assignment work by our crew today…

Updated Gold Chart

The interesting thing about Gold recently has been its ability to hold the $1,648 support level on a closing basis…for the past six months, Gold has been trading in a downsloping channel but buying pressure is on the increase and the RSI(14) trend is positive…we remain in the bullish camp as we see plenty of upside potential during this first quarter and throughout the year…too many fundamental factors continue to underpin Gold…

Today’s Markets

Asian markets were mixed overnight with China’s Shanghai Composite relatively unchanged at 2275…European shares are off session highs in early afternoon after figures released for German industrial output failed to live up to expectations…stock index futures in New York are pointing toward a positive open on Wall Street…

The Venture Exchange continues to hold above support at 1220…momentum in this market should pick up once the Index is able to push through important resistance at 1240…

Canadian Dollar Chart Update

There is a strong correlation between the Venture, and Canadian equities in general, and the Canadian dollar which continues to look very bullish…below is a fresh 6-year monthly chart from John that shows how the dollar staged an important breakout last summer, right around the time the Venture started its 200-point rally…the dollar pulled back a little in the fall, but now appears ready to burst higher – just one more reason we believe the Venture’s recent modest rise will start to gain some serious traction at some point during this first quarter…

Castle Resources Inc. (CRI, TSX-V) and Carlisle Goldfields Ltd. (CGJ, TSX)

John has chart updates this morning on two companies worthy of our readers’ due diligence that we’ve highlighted previously – Castle Resources Inc. (CRI, TSX-V), working on its Granduc Copper Project near Stewart, B.C., and Carlisle Goldfields Ltd. (CGJ, TSX) which has five Gold deposits in the Lynn Lake Greenstone Belt in northern Manitoba…

Castle Resources Inc. (CRI, TSX-V)

Carlisle Goldfields Ltd. (CGJ, TSX-V)

Note: John, Jon and Terry do not hold positions in CRI or CGJ.