BullMarketRun.com

Gold has traded in a range between $1,728 and $1,736 so far today…as of 6:00 am Pacific, bullion is up $3 an ounce at $1,733…Silver is 2 cents higher at $33.40…Copper is flat at $3.49…Crude Oil is relatively unchanged at $87.40 while the U.S. Dollar Index is off one-quarter of a point to 80.49…

Today’s Markets

Asian markets were strong overnight though Japan was closed for a public holiday…Hong Kong shares rose for a third-straight session and closed out their best week in over two months…China’s Shanghai Composite posted its first weekly gain in three weeks by climbing 12 points to 2027…the Shanghai, which has lost 60% of its value since its 2007 peak, is languishing at 3.5-year lows despite signs of a strengthening Chinese economy…corporate profits continue to be a concern, however, as well as China’s overall corporate debt levels which are expected to rise to 122% of gross domestic product by the end of this year, up from 108% last year, as reported by Reuters earlier this week…much of this increase in debt was caused by the massive four trillion yuan ($642 billion) stimulus which the Chinese government pumped into the economy in November, 2008, to minimize the impact of the global financial crisis…a lot of this money was injected via banks, which in turn directed lending to state enterprises and other projects that could ultimately go sour…

European shares are up modestly in late trading…divisions between rich and poor countries have flared over the European Union’s next seven-year budget, leading German Chancellor Angela Merkel to rule out an accord until the new year…stock index futures in New York are pointing toward a positive open on Wall Street after yesterday’s Thanksgiving holiday…it’s a shortened trading day in the United States with markets closing at 10:00 am Pacific…traders and investors will be closing monitoring important “Black Friday” shopping numbers out of the United States…

Japan Likely To Pile Up More Debt, Abe To Promote $2.5 Trillion Public Works Package If Elected

The front-runner to become Japan’s next prime minister said he would consider loosening some of the nation’s fiscal-discipline policies, in defiance of warnings by credit raters to curb borrowing by the heavily indebted government, suggesting instead more spending to help jump-start growth…”First, we will concentrate our policy tools to curb deflation,” opposition leader Shinzo Abe said in an interview yesterday with The Wall Street Journal, “but that can’t be done solely by monetary policy”…he alluded to his prominent campaign to push the Bank of Japan to take more aggressive measures to boost an economy heading toward its second recession in five years…Abe said if his Liberal Democratic Party were to win control of the government in the Dec. 16th elections, he would promote a ¥200 trillion ($2.5 trillion) public-works package, and he wouldn’t feel bound by pledges made by the current ruling Democratic Party of Japan to avoid increasing the issuance of new debt…

“I Don’t Think We’re Anywhere Near Any Kind Of Limit” – San Francisco Fed President On Bond Buying

John Williams, president of the San Francisco Federal Reserve Bank and one of the Fed’s stronger advocates for continuing to use monetary policy to bolster the economy, said the central bank’s securities portfolio hasn’t grown “anywhere near” the kind of limits that might impede the Fed from carrying on with its bond-buying programs…”Our concern is to make sure our policies aren’t creating problems with market-functioning,” he said in an interview with The Wall Street Journal…”In terms of how far you can go, I don’t think that we’re anywhere near any kind of limit.…conceptually, you could imagine some upper limit to this but I don’t think we’re getting anywhere near it”…

Canadian Dollar Update

We regularly track the performance of the Canadian dollar as the Venture Exchange tends to perform best when the loonie is strong…at the moment, the Canadian dollar is healthy from a technical standpoint and appears to be in the early stages of a new uptrend after slumping the last half of September and most of October…if this is the case, then the Venture has a good chance of holding important support above 1200 during the coming few weeks – a period of the year when the Index can be up against some selling pressure…below is a three-year weekly Canadian dollar chart from John…

Huldra Silver (HDA, TSX-V)

Huldra Silver provided a major corporate update this morning which we’ll have a chance to review in more detail over the weekend, but the news from Huldra continues to be very positive…the company has achieved a major milestone by shipping its first concentrates from its mill in Merritt which is now fully-staffed and operating around-the-clock, 24 hours a day, 7 days a week…Huldra also announced its 2013 exploration plans which include 4,000 metres of underground drilling, which will help lead to an updated 43-101 resource estimate for the Treasure Mountain deposit, and the company next year will also be conducting an 8,000-metre surface drill program, spread across four separate targets…HDA closed yesterday up 3 pennies at $1.46…

Lumina Copper Corp. (LCC, TSX-V))

Lumina Copper Corp. (LCC, TSX-V) has significantly increased resources at its 100%-owned Taca Taca Copper/Gold/molybdenum project in northwest Argentina…at a 0.3% Copper-equivalent cut-off, total contained sulphide copper in the indicated resource category is estimated to be 21.1 billion pounds, while total contained sulphide copper in the inferred resource category is estimated to be 7.6 billion pounds…LCC, a potential takeover target, closed yesterday at $9.20 – in the immediate vicinity of its 100-day moving average (SMA)…

Corvus Gold (KOR, TSX)

One of our favorite companies operating in Nevada is Corvus Gold (KOR, TSX) which has recently pulled back, as expected, after climbing to a new 52-week high of $1.70…KOR closed yesterday at $1.35 which is about 20 cents above its rising 100-day SMA and 28 cents above its recent financing price…below is a detailed chart from John showing how Corvus has ended a “Wave 3” move and is currently in a “Wave 4” retracement that shows support at $1.26…

“Diamonds In The Rough”

Amazingly, approximately 25% of all Venture-listed companies at the moment are trading at a nickel or lower…we suggest readers check them out to look for potential opportunities for 2013…many of those companies likely aren’t worth investing in, but some undoubtedly will emerge as big winners in 2013 or beyond…we hope to uncover a few “diamonds in the rough” ourselves between now and the end of the year…one company that holds merit in our view, which we’ve mentioned before, is Dynasty Gold (DYG, TSX-V) which reported $1.6 million in cash ($1.5 million in working capital) as of June 30…the company has been doing an excellent job of preserving cash (expenses totaled just $141,000 for the three-month period ending June 30) and also recently picked up a project in the prolific Stewart District of B.C. (the “Strike” property), a Gold-Silver-Copper-Lead-Zinc target…Dynasty has already carried out some initial sampling and due diligence on the property to aid in identifying potential drill targets…Dynasty, which has nearly 120 million shares outstanding, has been trading between 2 and 4 cents since March and who knows when it’ll wake up but but they don’t have to worry about raising additional money in order to start a first phase drill program to kick-start things…below is a 5-year weekly Dynasty chart from John…

Note: Jon holds a share position in DYG.