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Gold has hovered between $1,289 and $1,299 so far today…as of 8:00 am Pacific, bullion is down $3 an ounce at $1,292…Silver is unchanged at $19.82…Copper is off 1 cent at $3.02…Crude Oil is relatively flat at $101.45 while the U.S. Dollar Index has fallen one-tenth of a point to 80.08…

Indian Gold imports will rebound in the second half of this year as a new government eases trade curbs and festivals and weddings spur demand, according to billionaire Indian jeweler T.S. Kalyanaram (source: www.usfunds.com)…despite the curbs, India accounted for 25% of global demand in 2013 according to the World Gold Council, being surpassed by China as the largest Gold consumer…according to Kalyanaram, India’s demand is nearly 50% greater than China’s, once you take into consideration the amount of Gold that is being smuggled into the country…

Check out an excellent article from Mineweb’s Lawrence Williams this morning (“Is Chinese Gold Demand Really Falling? Probably Not” –  www.mineweb.com)…

Euro Zone Inflation At Lowest Level Since 2009

Something to watch out for in the near future – the increasing likelihood of QE from the ECB…as the Financial Times reported over the weekend, Germany’s powerful central bank has radically scaled back its opposition to the possibility of the ECB embarking on a government bond buying program…this morning it was reported that inflation in the euro zone came in below expectations at an annual rate of just 0.5% in March, slowing from 0.7% in February to its lowest level since 2009…this is stoking fears that the currency bloc is drifting toward a Japanese-style bout of deflation, a damaging period of falling prices…today’s new figures may heap pressure on policymakers in Frankfurt to vote for radical action an an ECB meeting later this week (Thursday), though most seasoned market watchers don’t expect the ECB to act as early as this week…the euro is actually trading slightly higher this morning…

Today’s Markets

Asia

China‘s Shanghai Composite fell 8 points overnight to close at 2033…meanwhile, Japan’s Nikkei climbed 132 points to finish at 14828, its highest level in three weeks, but the Nikkei was still the region’s worst-performing Index for the quarter with a loss of 9%…

Europe

European markets were slightly higher today with some investors anticipating stimulus measures to be announced by the ECB later this week…

North America

The Dow is up 122 points as of 8:00 am Pacific on “bullish” comments regarding Fed support for the economy from Janet Yellen this morning…the TSX is 60 points higher while the Venture has added 5 points to 995…

Venture 5-Year Weekly Chart

Below is an updated Venture 5-year weekly chart from John…as we showed over the weekend, the Index has several layers of superb technical support (Fib. and chart) between the rising 200-day moving average (SMA) at 946 through the mid-980’s…on this 5-year weekly, buy pressure remains strong and steady, RSI(14) at 52% is near support, and +DI on the ADX trend indicator remains above -DI which confirms a bullish overall direction…the pullback from the high of 1050 earlier this month is normal and healthy from a technical standpoint…

Fission Uranium Corp. (FCU, TSX-V) Update

Fission Uranium Corp. (FCU, TSX-V) has expanded the east-west strike length of its Patterson Lake South Discovery from 1.78 km to 2.24 km with the release of six new holes this morning that each encountered considerable mineralization…winter drilling at PLS has successfully merged four high-grade zones into one, and hole PLS-14-196 reported this morning (still in progress) intersected total composite mineralization of 30.5 m and marks a new zone 485 m east along strike…FCU is up 4 cents to $1.67 through the first 90 minutes of trading…

NexGenEnergy Ltd. (NXE, TSX-V) Update

NexGen Energy ltd. (NXE, TSX-V) reported more results this morning from its Arrow prospect uranium discovery at its Rook 1 Project, just over 2 km northeast of Fission’s PLS discovery…hole RK-14-30, a 215-m step-out from Arrow discovery hole RK-14- 21, intersected the widest and strongest radiometrically anomalous zones encountered to date (numerous zones totaling 47.2 meters, including numerous individual zones totaling 8.3 m greater than 10,000 cps)…RK-14-30 extends the strike length of the Arrow mineralized zone, open to the southwest, to 215 m…NXE is up 2 pennies at 46 cents as of 8:00 am Pacific…

Doubleview Capital Corp. (DBV, TSX-V) Update

Temperatures have warmed up significantly in the Sheslay Valley, and that has allowed Doubleview Capital (DBV, TSX-V) to commence an important new phase of drilling at the Hat Property to follow up on the company’s Cu-Au porphyry discovery announced in late January…in the very near future, as drilling at the Hat continues, we’ll be posting Part 2 of our feature on Doubleview, and of course we’ll also be looking at the bigger picture of the Sheslay Valley district in general…with a 22-km long mineralized NW/SE trending corridor from Garibaldi Resources Corp.’s (GGI, TSX-V) Grizzly West porphyry target through Prosper Gold Corp.’s (PGX, TSX-V) Sheslay Property to DBV’s Hat discovery, this is shaping up to be one of the most exciting exploration plays British Columbia has witnessed in many years…

Below is an updated DBV chart…a normal pullback has occurred this month after an all-time high of 33.5 cents March 14…support is strong near current levels with RSI(14) showing signs of reversing higher…DBV is up a penny at 22 cents on light trading as of 8:00 am Pacific…

Silver Wheaton Corp. (SLW, TSX)

Below is an interesting chart from John on Silver Wheaton Corp. (SLW, TSX) which appears to have found support in the immediate vicinity of its rising 100 and 200-day moving averages (SMA’s) just below $25…the main purpose of this chart is to show how strong this sector looks at the moment, technically, and why the recent sell-off should be viewed as an opportunity…

Specifically in terms of Silver Wheaton, it has a business model that is proven to work effectively at all stages of the commodity price cycle…SLW is the world’s largest precious metals streaming company…it has a number of agreements where, in exchange for an upfront payment, it has the right to purchase all or a portion of the Silver and/or Gold production, at a low fixed cost, from high-quality mines located in politically stable regions around the globe…as always, perform your own due diligence…

Short-Term Silver Chart

RSI(14) on this short-term Silver chart appears to have bottomed, suggesting the metal should stabilize around current levels after falling nearly 10% since mid-March…Silver will have plenty of resistance to fight through, though, between $20 and $22…

Long-Term Silver Chart

This 11-year monthly chart confirms that the metal has exceptional support just below $20…sell pressure has been dominant since early last year but is weak…if and when Silver breaks above the main downtrend line, watch out (there are two downtrend lines to take note of)…RSI(2) has unwound from above 80% to 38%…

Note:  John and Jon both hold share positions in DBV and GGI.  Jon also holds a share position in PGX.

TSX Venture Exchange and Gold

As mentioned last weekend, technical evidence was suggesting a good possibility of some immediate weakness in the Venture, a minor pullback to a strong zone of support and that’s what occurred as the Index reversed intra-day Monday and fell 45 points or 4.3% for the week to close at 990.  Interestingly, the Index bounced off RSI(14) support Friday on the 9-month daily chart (see below) with a 5-point gain, so the set-up for a near-term resumption of the overall uptrend appears to be in place.

Superb technical support (chart and Fib.) is underpinning this market between the rising 200-day moving average (SMA) at 946 through the mid-980’s. Keep in mind that the late January/early February pullback reversed at the rising 100-day SMA which now sits at 963.  In addition, according to Elliott Wave theory, what appears to be under construction at the moment is “Wave 4” which last week found support at the top of “Wave 1”.  So it’s possible that Thursday’s 985 close (exactly at the 300-day SMA, by the way) could be the closing low in this pullback – we should know for sure next week (-DI on the ADX indicator appears to have peaked which is bullish).

If 985 is not the closing low, there are other strong layers of support as mentioned.  Many individual company charts continue to look very positive with strong overall uptrends firmly in place.  As the saying goes, “The Trend Is Your Friend”, and the Venture trend that has been established since last October is very bullish and predictable.  That’s why we were able to call an important low in late December and another important low in late January/early February.  Now is no different.  Successful investors understand volatility and the importance of embracing weakness, especially when the primary trend is up.

Venture 9-Month Daily Chart

The Seeds Have Been Planted (And Continue To Be Planted) For The Next Big Run In Gold Stocks

There’s no better cure for low prices than low prices.  The great benefit of the collapse in Gold prices in 2013 is that it forced producers (at least most of them) to start to become much more lean in terms of their cost structures. Producers, big and small, have started to make hard decisions in terms of costs, projects, and rationalizing their their overall operations.  Exploration budgets among both producers and juniors have also been cut sharply.  In addition, government policies across much of the globe are making it more difficult (sometimes impossible) for mining companies to put Gold (or other) deposits into production, thanks to the ignorance of many politicians and the impact of radical and vocal environmentalists (technology has made it easier for groups opposing mining projects to organize and disseminate information, even in remote areas around the globe).   Ultimately, all of  these factors are going to create a supply problem – think about it, where are the next major Gold deposits going to come from? On top of that, grades have fallen significantly just over the past decade.

It doesn’t take a rocket scientist to figure out that the next huge bull market in Gold stocks is just around the corner due to demand-supply dynamics, much leaner producers who will suddenly become earnings machines, and a junior market that will be healthier simply because a lot of the “lifestyle” companies sucking money out of investors will simply disappear or get taken over by individuals or groups who are actually competent and serious about building shareholder value.   A healthy “cleansing” in the market has been taking place.  As this continues, more and more seeds are being planted for an incredible future move in well-managed Gold producers and explorers that could make the dotcom bubble look like a tea party.  As for the juniors, focus on the small universe of companies that have the ability to execute both on the ground and in the market.  Companies that are strong financially, have superior exploration prospects, competent management and clean share structures.

Gold

It was a second straight rough week for Gold as the yellow metal fell another $40 to close at $1,295 following a $49 decline the previous week.  The correction is not totally surprising – bullion climbed nearly 20% in less than three months which also gave a 45% boost to the TSX Gold Index.  The “Big Picture” remains very positive in our view with Gold showing a strong support band between $1,270 and $1,300.  A near-term test of $1,270, which is also the Fib. 38.2% retracement level from the high earlier this month, is clearly possible.  Physical demand from Asia has been subdued recently but may start to pick up again below $1,300.

Below is an updated 1-year daily chart from John.  Over the past 10 months it appears that bullion has been constructing a bullish cup-with-handle pattern with the handle now under construction and $1,270 acting as support.

Net holdings for global Gold exchange-traded products continue to reflect net inflows in March, according to Barclays. Outflows from ETPs contributed significantly to Gold’s decline last year, so analysts have been watching to see when these stabilize. “After turning positive for the first time in more than a year in February, month-to-date flows have remained positive overall in March at 9.6 (metric) tons,” Barclays stated. “With hefty net outflows turning into modestly positive net inflows, gold could find some downside support, albeit these net inflows are not entirely firm, alternating between inflows and outflows over the past few weeks.”

Silver fell 45 cents last week to close at $19.92 (updated Silver charts Monday morning).  Copper reversed higher, gaining 9 cents to finish back above $3 a pound at $3.03.  Crude Oil gained $2.21 a barrel to close at $101.67 while the U.S. Dollar Index was relatively unchanged at 80.12.

The “Big Picture” View Of Gold

As Frank Holmes so effectively illustrates at www.usfunds.com, the long-term bull market in Gold has been 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, has had a huge impact on bullion.  Despite Gold’s largest annual drop in three decades in 2013, the fundamental long-term case for the metal remains solidly intact – currency instability and an overall lack of confidence in fiat currencies, governments and world leaders in general, an environment of historically low interest rates, a Fed balance sheet now at $4 trillion and still expanding, money supply growth around the globe, massive government debt from the United States to Europe, central bank buying, flat mine supply, physical demand (especially from China), emerging market growth, geopolitical unrest and conflicts…the list goes on.  However, deflationary concerns around the globe and the prospect of Fed tapering had a lot to do with Gold’s plunge during the spring of 2013  below the technically and psychologically important $1,500 level, along with the strong performance of equities which drew “momentum traders” away from bullion.  June’s low of $1,179 was likely the bottom for Gold.  Extreme levels of bearishness emerged in the metal last year.  With the long-term bull market remaining intact, we expect new all-time highs in Gold as the decade progresses.  Inflationary pressures should eventually kick in around the globe after years of ultra-loose monetary policy.

We are in the process of updating our eAlert list, especially in light of recent exploration discoveries and the much improved Venture outlook for 2014.  If you wish to be included in the BMR eAlert system, which sends out occasional important and timely market information that’s not always posted on our site (or before it’s posted on our site), simply click on the “Contact Us” button you see in the top right hand corner of this page, type in “Alert” in the subject line, give us your first name, and hit the send button.  Your email address is not given out to any other party.

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IMPORTANT:  If you are already an eAlert subscriber, or if you’re about to become one, please ensure you add “bullmarketrun@hotmail.com” to your email contact list.

Welcome to our site, or at least the initial version of it!  BMR has been online for more than four years and strictly through word-of-mouth we have built a loyal following.  We encourage reader feedback and the exchange of helpful opinions and ideas among investors in our forum. 

We’re continuing with our plans to ultimately construct a very unique investment and money-management resource site that goes considerably beyond what we have now.  We focus a great deal on the Gold, Silver and Copper markets as well as trends in the global economy, in addition of course to the technical health of the TSX Venture Exchange (CDNX).  An important component of this site, as well, will always be original research on high quality junior exploration companies or small producers 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, and we are being more selective than ever in the current market environment.  We look for companies with the ability to execute both on the ground and in the market, who are determined to build shareholder value, which actually excludes most Venture stocks.  However, investors must understand that the companies we do put forward for our readers’ due diligence are still highly speculative situations and entail considerable risk, volatility and unpredictability.

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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.  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 perspective (His money that we have been given stewardship of), He will bless you.  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,

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Owner/Publisher, www.BullMarketRun.com

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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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Gold has traded between $1,286 and $1,301 so far today…as of 7:45 am Pacific, the yellow metal is up $3 an ounce at $1,294…Silver is 13 cents higher at $19.81…Copper is up 4 pennies to $3.02…Crude Oil is 51 cents higher at $101.80 while the U.S. Dollar Index is up slightly at 80.12…

Gold is set to decline for a second straight week and is down almost $100 an ounce from a 6-month high earlier this month as improving sentiment over the U.S. economic outlook has dented its safe-haven appeal…however, bullion is now trading within a strong band of technical support ranging from $1,270 where physical demand may also kick in…prices in China have been at a discount to spot prices this week. indicating a lack of fresh demand above $1,300…

In its latest report, CPM group projects that new Gold mining capacity expected to come on stream by 2016 will be only 12 million ounces, down substantially from the original estimate of 22.8 million ounces…significant increases in mine supply are expected from Brazil, China, DRC, Ghana, Indonesia, Mongolia and the United States this year…among the major Gold producing countries, South Africa and Australia are forecast to see production declines this year, according to CPM…China remains the world’s largest Gold producer, contributing almost 16% of global mine supply last year for a total of 13.8 million ounces…Gold production in China in 2014 is expected to increase 5.6% to 14.5 million ounces.  “Even as production continues to grow,” CPM observed, “the lower prices of Gold and difficulties mining companies are experiencing in securing development financing are reducing projected future increases in production.”

Today’s Markets

China

China‘s Shanghai Composite declined 5 points overnight to close the week at 2042…the Chinese government is due to release its official Purchasing Managers’ Index (PMI) alongside HSBC’s final PMI reading next Tuesday… in a speech two days ago reported by state media today, Chinese Premier Li Keqiang said the government would gradually roll out targeted measures to aid the economy, fueling speculation of imminent monetary stimulus…

Japan’s Nikkei climbed 73 points overnight to finish at 14696…

Europe

European shares are up significantly in late trading overseas…

North America

The Dow is up 114 points as of 7:45 am Pacific…the Commerce Department reported this morning that consumer spending increased 0.3% last month, in line with expectations, after rising by a revised 0.2% in January (spending was previously reported to have increased 0.4% in January)…meanwhile, the Thomson Reuters/University of Michigan’s final March reading on the overall index on consumer sentiment came in at 80.0 for this month, slightly below expectations…it was up a tick from the preliminary 79.9 March reading but down from 81.6 the month before…

3-Month Dow Daily Chart Update

The Dow is trading more than 700 points above its rising 200-day moving average (SMA) which provided support for the market during the late January/early February weakness…the 200-day currently sits at 15670 as you can see in the chart below…significantly, the Fib. 61.8% support level (16064) has held so far in the pullback from the March high of 16506, and the SMA(50) is also providing support (currently at 16124)…other Fib. support ranges from 15788 (38.2%) to 16064 (61.8%)…the decline in buy pressure since early this month has been quite pronounced but could be short-lived – we’ll see what next week brings…

The TSX is up 109 points as of 7:45 am Pacific while the Venture is 5 points higher at 990…readers may wish to perform their due diligence on Canada Coal Inc. (CCK, TSX-V) which reported during the day yesterday that it’s searching for “new projects” in the resource and non-resource sectors…the company latest financials (Dec. 31) show it’s sitting on nearly $2 million in cash with no liabilities and a current market cap of only $1.5 million (at yesterday’s 3.5-cent close)…CCK is up half a penny at 4 cents through the first 75 minutes of trading…

TSX Gold Index Updated Chart

After a 45% climb in less than three months, it’s not surprising that the TSX Gold Index has given up some of those gains in a consolidation phase with a 17% pullback over just 10 trading sessions between March 14 and yesterday…the correction appears to have largely run its course with RSI(14) hitting previous support at 30% on this 6-month daily chart…the 200-day SMA (179) is just above the Fib. 38.2% level at 175, so that should be the strong support range – 175-179…the Gold Index is up 3 points at 185 as of 7:45 am Pacific…

Highbank Resources Ltd. (HBK, TSX-V)

Highbank Resources (HBK, TSX-V) is moving forward rapidly with its business plan after receiving all the necessary permitting recently to allow for production at its Swamp Point North aggregate project near Prince Rupert…yesterday, the company announced that it has signed an LOI with West Coast Tug & Barge Ltd. of Campbell River, B.C., for barging aggregate from the Swamp Point North operation to destinations in the Port Simpson and Prince Rupert areas…this is Highbank’s competitive advantage – the location of its deposit (on the edge of the Portland Canal) and the ability to move material more cost effectively by barge (as opposed to trucking it over significant distances)…

Below is a 10-year monthly HBK chart from John…the confirmed breakout above 15 cents is significant, and note how buy pressure has recently replaced sell pressure which was dominant since the beginning of 2012…HBK closed yesterday at 17 cents…

Integra Gold Corp. (ICG, TSX-V)

Integra Gold (ICG, TSX-V) continues to make progress at its Lamaque operation near Val d’Or and currently has seven drill rigs on site…results to date are confirming the continuity of high-grade mineralization between existing drill holes at the Triangle deposit…ICG has been consolidating recently after climbing as high as 42 cents in February (support levels shown below), but the purpose of this chart is to demonstrate some technical similarities between ICG and the broader Venture market…note how ICG broke above a long-term downtrend line in late September/early October, right around the same time as the Venture did…this period was really the turning point in the market…ICG then retraced to test the top of that downtrend line (new support) – just as the Venture did – and then immediately powered higher…recently, we’ve seen a very normal pullback in ICG with exceptionally strong support in the mid-20’s which coincides with Fib. levels and a rising 100-day SMA…similar story with the Venture…bottom line – embrace this pullback we’ve seen on the Venture and in Gold stocks as the primary trend remains very bullish…

Note: Jon holds a share position in CCK.

Gold has traded between $1,291 and $1,307 so far today…as of 8:30 am Pacific, bullion is down $9 an ounce at $1,297…Silver is off a nickel at $19.68…Copper is up 3 pennies at $2.98…Crude Oil, at $101.61, has added $1.35 a barrel while the U.S. Dollar Index is flat at 80.01…

As John’s charts have shown, Gold has a strong support band between $1,270 and $1,300, and is now trading in the immediate vicinity of its 200-day moving average (SMA) which is currently $1,296…prices are now at their lowest level since February 13 when bullion was trading at $1,291…evidence of a pick-up in physical demand from Asia would certainly help Gold reverse course…

Holdings in the world’s largest Gold-backed exchange-traded fund, the SPDR Gold Trust, fell 1.8 tonnes to 817 tonnes yesterday after declining 2.7 tonnes in the previous session…that has cut its net inflow for the year to 18.8 tonnes…

Barclays has revised its 2014 Gold forecast to $1,250 an ounce from $1,205 an ounce, citing Gold’s year-to-date performance… investor sentiment seems to have stabilized and that will bode well for prices, said Barclays’ analysts.  “That said, we have not changed our overall view and still believe that its next move will be lower,” said lead analyst Gayle Berry in a note dated yesterday…Berry said beyond safe-haven bids from Russia-Ukraine tensions, prices will struggle to hold onto recent gains and will need to find catalysts in the form of economic data to support prices at current levels…

Today’s Markets

Asia

After several days of gains, China’s Shanghai Composite fell 17 points overnight to close at 2047…Japan’s Nikkei pushed higher, gaining 146 points to close at 14623…

Europe

European markets were down slightly today…

North America

The Dow is up 2 points as of 8:30 am Pacific…a slew of economic reports this morning…the number of Americans filing new claims for unemployment benefits unexpectedly fell last week and touched its lowest level in nearly four months, suggesting the labor market was strengthening…meanwhile, a separate report showed U.S. economic growth was a bit faster than previously estimated in the fourth quarter (2.6% vs. previously estimated 2.4%), displaying underlying strength that could bolster views that the slowdown in activity early in the year would be temporary…the National Association of Realtors reported pending home sales fell for an eighth month in February, with sales down 10.5% from a year ago…

The TSX is 9 points lower while the Venture is down 13 points at 990 as of 8:30 am Pacific after dipping as low as 987 in early trading…

Mistaken Identity

Yesterday’s activity in Oculus VisionTech Inc. (OVT, TSX-V) shows how some investors are a little too “trigger happy” at times, and don’t think things through before hitting the buy or sell button…Facebook Inc. (FB, Nasdaq) announced late Tuesday that it had reached a definitive agreement to buy Oculus VR, Inc., the leader in immersive virtual reality technology, for $2 billion in cash and stock (Facebook’s first push into mobile hardware)…problem is, some investors jumped to the wrong Oculus and a buying stampede ensued in Oculus VisionTech (OVT, TSX-V, and OVTZ on the pink sheets) which is involved with watermaking digital media, like videos, to protect against piracy…OVT, which closed Tuesday at 13.5 cents, opened at 21 cents on the Venture yesterday and climbed to 34 cents during the first 25 minutes of trading before the stock was halted…the company then issued a new release confirming there were no material changes and that OVT is not associated with the transaction involving Facebook and Oculus VR…

Anyway, click on the link below for an interesting story on the private company that is getting taken over by Facebook…

http://www.gamesindustry.biz/articles/2014-02-28-vr-palmer-luckeys-quest-to-change-the-world

Magor Corp. (MCC, TSX-V)

On the subject of technology, check out the latest couple of news releases from Magor Corp. (MCC, TSX-V) which, quite simply, is changing the way people interact with video through its Aerus software platform (www.MagorCorp.com)…

Volume in Magor has picked up in recent sessions with the stock finding strong support around the 30-cent level…it climbed as high as 38.5 cents intra-day yesterday before closing at 34 cents, a gain of 4 pennies…below is a 1-year weekly chart from John as it appears MCC is ready to breakout from a downsloping wedge…MCC is unchanged at 34 cents as of 8:30 am Pacific…

Venture Updated Charts

The technical posture of the Venture at the end of last week – RSI(14) divergence with price, declining buy pressure – suggested a strong possibility of an immediate minor pullback, and that’s exactly what has occurred…investors need to keep in mind, however, that the overall trend remains very bullish and a correction to levels of very strong support is a normal and healthy process – not to mention an opportunity to grab quality issues at a discount…

9-Month Daily Venture Chart

This 9-month daily chart provides an Elliott Wave interpretation of how the Venture has been behaving in recent months, and how 985 could be a potential low – however, there is also plenty of support beneath 985 as the second chart will show…

13-Month Daily Chart

This 13-month daily chart shows an uptrend line from the beginning of this year that has been slightly breached; however, note the very strong chart support at 970 and the rising 100-day moving average (SMA) directly beneath it at 963…the 100-day SMA was rock-solid support for the Venture at the beginning of February when the Index fell to a low of 939…the rising 200-day SMA is currently 945…

10-Year Monthly Chart

This 10-year monthly chart demonstrates how positive the underlying strength of the Venture is at the moment…whenever there has been a major reversal to the upside in advancing issues, as we’ve seen recently with the Venture, this has confirmed that the primary trend is bullish and any pullbacks to support are excellent accumulation opportunities…

Cadillac Mining Corp. (CQX, TSX-V)

We’re keeping an eye on Cadillac Mining Corp. (CQX, TSX-V) which has shown an increase in both volume and price recently, and has a history of sudden and explosive moves to the upside…what’s particularly interesting is last week’s announcement by Cadillac that it has appointed Gary Nordin to its board of directors…as co-founder and former director, and vice-president (1982 to 1990) of Bema Gold Corp., Nordin was intimately involved in the exploration and development of the Champagne heap-leach Gold project in Idaho that formed the foundation for that company’s evolution into a mid-tier Gold producer…Nordin could be immensely helpful to Cadillac as it attempts to advance its Goldstrike Project in Utah which has strong geological merit…

Technically, CQX appears to have turned the corner after along downtrend that began in early 2012…below is a 2.5-year weekly chart from John…CQX closed at a nickel yesterday…

Note: Jon holds share positions in MCC and CQX.

Gold has traded between $1,308 and $1,318 so far today…as of 7:00 am Pacific, the yellow metal is down $1 an ounce at $1,311…Silver has added 2 cents to $20.02…Copper is off 3 pennies to $2.96…Crude Oil is up 63 cents at $99.82 while the U.S. Dollar Index has gained one-tenth of a point to 80.08…

Average annual Gold prices are expected to remain steady and stay above the lows seen at the end of 2013, CPM Group predicts…the New York-based consultancy released its annual Gold Yearbook yesterday which is considered one of the industry’s most coveted staples for forecasting the metal…findings from CPM Group show Gold prices averaged $1,409.43 an ounce in 2013, down 15.6% from the average Gold price of $1,670.15 an ounce in 2012…this was the first annual average decline for the yellow metal in more than a decade…“The decline was sharper on a daily basis, with prices slipping to $1,202.30 on 31 December 2013, down 28.3% from the end of 2012,” CPM Group said…the firm now expects Gold prices to move higher than they were at the end of 2013, with an  average annual 2014 price of $1,330 an ounce…

Iraq’s central bank said it bought 36 metric tons of Gold this month in the largest purchase by a nation in three years…Russia and Kazakhstan were among countries that added bullion to reserves in February, while Mexico and Malaysia’s holdings declined, according to data from the International Monetary Fund…

Updated Copper Chart

As we mentioned the other day, oversold levels have appeared in Copper and possibly an important low within the support band from $2.90 to $3.00…any fresh stimulus from the Chinese government and/or the ECB during the upcoming second quarter would likely be helpful for Copper which in the last three months has slid from a high of $3.45 to a low of $2.88, a nearly 17% drop…on the 2.5-year weekly chart, you can see how the metal has bounced off previous RSI(14) support…sell pressure remains dominant but weak, less intense than that witnessed during 2012 and in the June-July-August period last year…

Today’s Markets

Asia

Japan’s Nikkei climbed 54 points overnight while China’s Shanghai Composite fell 4 points to close at 2064…the prospect of a reserve requirement ratio (RRR) cut from the People’s Bank of China remains in focus following a disappointing reading of March factory activity…

Europe

European markets are significantly higher for a second straight day in late trading overseas…ECB officials sent strong signals yesterday that they are willing to consider dramatic steps to guard against dangerously low inflation, suggesting the bank is prepared to shed some of its traditionally cautious approach…the possible tools, cited by some top policy makers from different parts of the euro zone, include effective negative interest rates – meaning rates so low that commercial banks would essentially pay the ECB to park their extra cash overnight…they also include purchases of government or private-sector debt to hold down long-term rates and spur lending…

North America

The Dow is up 53 points as of 7:00 am Pacific…orders for long-lasting U.S. manufactured goods rebounded more than expected in February and shipments snapped two straight months of declines, providing fresh signs the economy was shaking off some of its winter gloom…the Commerce Department said this morning that durable goods orders rose 2.2% as demand increased almost across the board, ending two consecutive months of declines…

The TSX is 20 points higher through the first 30 minutes of trading while the Venture is up 2 points at 1020…

Highbank Resources Ltd. (HBK, TSX-V) Update

Highbank Resources (HBK, TSX-V) is making immediate progress toward securing potential sales contracts and revenue following receipt of all the necessary permitting to produce aggregate from its Swamp Point North Project near Prince Rupert…the company has signed a letter of intent with North Coast Concrete which has committed to accept 150,000 tonnes of aggregate based on the ability of Highbank to meet the specifications and delivery requirements as stipulated, for use in concrete to supply construction projects in the Port of Prince Rupert area, for one year from the date of the LOI…

Technically, HBK is looking very strong with a confirmed breakout above 15 cents, a level that has not been exceeded since 2008…below is a 10-year monthly chart from John…HBK is up a penny at 17 cents on light volume through the first 30 minutes of trading…

GoldQuest Mining Corp. (GQC, TSX-V)

GoldQuest Mining (GQC, TSX-V) continues to look very strong from a technical standpoint as the company gears up for more drilling in the Dominican Republic to test promising areas in the district around the multi-million ounce AuEq Romero discovery…last month, the company commenced an important heli-borne ZTEM geophysical survey covering its entire 100%-owned Tireo concessions which will allow GQC to quickly evaluate the complete area to depths beyond 1 km in order to identify potential new hydrothermal systems…the 60-km strike length of the Tireo concessions has been unexamined to date…great potential for new drilling discoveries by GoldQuest this year in our view…

Below is a 2.5-year weekly GQC chart…the stock has excellent support in the low 30′s where the 50 and 200-day SMA’s have converged (a “Golden Cross” is in the works)… a strong resistance band exists between 40 and 48.5 cents…GQC is unchanged at 33.5 cents as of 7:00 am Pacific…

Probe Mines Ltd. (PRB, TSX-V)

Probe Mines (PRB, TSX-V) has backed off slightly in recent sessions but look how the MA(10) on this 2.5-year weekly chart has provided rock-solid support since the stock started its big move in the second quarter of last year…the MA(10) is currently at $3.18…PRB is consolidating after hitting an all-time high of $3.95 March 14…given how drilling continues to produce outstanding results from Borden Lake – already a multi-million ounce Gold deposit – we can’t help but believe the risk-reward ratio at current levels for PRB remains highly attractive…the stock closed yesterday at $3.50, its 20-day SMA which has also been a strong supporting moving average…PRB is off 2 pennies at $3.48 as of 7:00 am Pacific…

Romios Gold Resources Inc. (RG, TSX-V)

Don’t count out Romios Gold (RG, TSX-V) in the Sheslay Valley sweepstakes, and keep in mind the company also has other projects from British Columbia to Ontario…what’s interesting about this 3-year weekly chart is that RG is on the edge of an important potential breakout above a long-term downtrend line…alternatively, there’s also the potential for a break below support at a nickel…however, the preponderance of buy pressure since last fall suggests the former possibility is more likely…a big offer exists at 7.5 cents but that also sets up bullish possibilities if it’s taken out (or removed) on a breakout above the resistance…we’ve seen the Venture itself and many Venture stocks push through long-term downtrend lines in recent months with bullish results…as always, perform your own due diligence…RG closed at 5 cents yesterday…

Note: John, Terry and Jon do not hold share positions in HBK, GQC, PRB or RG.

Gold, trading at a five-week low, has bounced between $1,306 and $1,320 so far today…as of 7:45 am Pacific, bullion is up $5 an ounce at $1,315…Silver is 20 cents higher at $20.13…Copper is up a nickel to $2.99…Crude Oil is off 46 cents at $99.14 while the U.S. Dollar Index is up more than one-tenth of a point to 80.07…

Eugen Weinberg, head of commodity research at Commerzbank, said the latest stretch of weakness for Gold “is due no doubt to further profit-taking after net long positions in Gold were increased for the sixth week running in the week to March 18. At 121,100 contracts, they are currently at their highest level since the end of November 2012.”

Gold’s recent drop should not be unsettling to investors…in fact, it should be viewed in the context of a normal, healthy pullback after a more than 15% advance since the December low…the 50 and 200-day moving averages (SMA’s), along with a Fib. 50% retracement level, coincide around $1,300…since May of last year, Gold has also been constructing a bullish cup-with-handle pattern which remains valid as long as bullion doesn’t close below $1,270 where there is also strong Fib. and chart support…understanding volatility and learning how to handle it is key to making money and wise decisions in the market…while Gold is down nearly 6% from its high earlier this month, and the TSX Gold Index has plummeted 11% in just six trading sessions, the Venture Exchange has held up extremely well in recent sessions – it’s down just 2.6% from its March high – though some nervous nellies have made some foolish mistakes in a few of the higher quality opportunities we follow…the Venture has confirmed beyond any reasonable doubt that it’s in the early stages of a new bull market (support areas are clearly defined), so the strategy in such an environment is to embrace weakness, not be frightened by it…

Today’s Markets

Asia

China’s Shanghai Composite eked out a third straight session gain overnight, adding a point to close at 2067…just last week, the Index had fallen below 2000 (1974) and the Chinese government has made it quite clear that they are considering accelerating fiscal stimulus though the exact timing of that is uncertain…new stimulus measures from China would be bullish for commodities…a 6-month daily chart for the Shanghai Composite shows a market in a recovery phase after once again successfully testing long-term support between 1950 and 2000…

Japan’s Nikkei slipped 52 points overnight on profit-taking following a nearly 2% rally Monday…sentiment was hurt after Bank of Japan deputy governor Kikuo Iwata stated that foreign investors have yet to be convinced of Japan’s resolve to end deflation…

Europe

European markets are up sharply in late trading overseas, thanks in part to expectations of fresh stimulus out of China to help reverse a recent slowdown…fresh economic data released this morning points to continued upward momentum in the Germany economy…

North America

The Dow is up 67 points as of 7:45 am Pacific…sales of new U.S. single-family homes fell more than expected and hit a five-month low in February, pointing to continued weakness in the housing market…however, the Conference Board’s Consumer Confidence Index rose to 82.3 in March, up sharply from February’s 78.3 reading, showing greater confidence in the economic outlook…

The TSX has gained 21 points while the Venture is 3 points higher 1022…

Long-term investors take note…Magor Corp. (MCC, TSX-V) reported Q3 2014 results this morning with the highest quarterly revenue in company history, $1.1 million, while gross margins increased to 62.9% from 27.1% in Q3 2013…Magor continues to steadily advance its business model, though not as rapidly as some impatient investors would like…significant growth is beginning to kick in from the company’s recently launched Aerus cloud-based services…Aerus, which is enabling people to interact with video in new ways, has successfully completed trials and is into implementation with a number of partners, and the Aerus service delivery platform has recently been enhanced to provide greater reach and options to the end user with support for Windows Operating Systems…MCC has the management and technical expertise to carve out a niche in a competitive market environment with an excellent opportunity to reach the significant milestone of cash flow break-even during fiscal 2015 (MCC’s 2014 fiscal year ends April 30)…MCC is off half a penny at 29.5 cents as of 7:45 am Pacific…

North Arrow Minerals Inc. (NAR, TSX-V) Update

Investors looking for opportunities and action in the diamond exploration sphere should perform their due diligence on North Arrow Minerals (NAR, TSX-V) which has some enticing opportunities as 2014 progresses…NAR is led by an all-star management team, it’s well-financed and active on several fronts…a discovery late last year at the company’s early-stage Pikoo Project in Saskatchewan also holds great promise…the stock has exceptional support in the 60’s, as you can see in this 1-year chart from John, and note the consistent and strong accumulation in NAR over the last five months…NAR is up a penny at 74 cents as of 7:45 am Pacific…

CMC Metals Ltd. (CMB, TSX-V)

CMC Metals (CMB, TSX-V) recently strengthened its management team (an overdue step) and appears to be turning the corner with mining finally underway at the Radcliff Property in California (CMC currently holds a 50% interest in the project)…operational plans at Radcliff entail producing a minimum of 2,000 tons of ore monthly for shipment to CMC’s recently permitted Bishop mill…the Bishop mill is expected to be functional in June…construction of a new adit toward a potential high-grade zone at Radcliff is also in the works…

Technically, CMC is looking stronger than it has a long time which also reflects the “new” market that we’re now in…the 200-day moving average (SMA) recently reversed to the upside, ending a decline that started in 2011…below is a 1.5-year weekly chart from John…CMC is up a penny at 8.5 cents as of 7:45 am Pacific…as always, perform your own due diligence…

Fission Uranium Corp. (FCU, TSX-V) Updated Chart

More stellar results from Patterson Lake South gave Fission Uranium (FCU, TSX-V) another boost yesterday as the stock continues to advance toward a Fib. measured resistance level…below is a 9-month weekly chart from John…RSI(14) is in overbought territory but momentum may keep it there for a while longer…FCU is unchanged at $1.66 through the first 75 minutes of trading…

Aldrin Resource Corp. (ALN, TSX-V)

Aldrin (ALN, TSX-V) announced commencement of drilling this morning at the company’s Triple M uranium project adjacent to Fission’s discovery…the program is planned for up to 4,000 metres and is testing coincident geological, structural, gravity, basement conductor, magnetic and radon anomalies…ALN, which fell from a high of 17 cents last summer to as low as 6 cents last month, has been hampered in the market over the last number of months due to significant share dilution but at least the company is in a position to carry out some major work at Triple M which does hold promise…

Yesterday, ALN announced it has arranged yet another financing – 5 million units at 8 cents per unit…with over 110 million shares outstanding, ALN will need to deliver results on the ground in order to overcome chart resistance…ALN is off half a penny at 12 cents as of 7:45 am Pacific…

Note: John, Jon and Terry do not hold share positions in NAR, FCU, ALN or CMB.  Jon holds a share position in MCC.