Gold, on track for its best weekly performance in 4 months, has traded between $1,217 and $1,226 so far today…as of 8:00 am Pacific, bullion is down $3 an ounce at $1,221…Silver is off 4 pennies at $17.31…Copper is 2 cents lower at $3.05…Crude Oil, which has fallen below a key support level as per John’s chart earlier this week, is down another 74 cents to $85.03 (a level not seen since late 2012) while the U.S. Dollar Index is up one-third of a point at 85.89…however, its 12-week winning streak certainly appears to be over barring an unexpected major late-day move…
The outlook for the global economy has darkened in recent weeks, and the Venture has been speaking loud and clear with regard to that as its abrupt and sharp reversal since the beginning of September – the fact the Index effortlessly sliced through strong support at 3 critical levels – foreshadowed a broader global equity correction that could intensify this month…
Crude Oil has also fallen below important technical support thanks to a range of factors including Saudi Arabia actually cutting prices to customers last week (not a good sign)…given the weaker outlook for the global economy – heightened deflationary concerns in the euro zone, fears that Germany’s economy might fall into recession, Brazil in recession and China hinting at weaker growth – and U.S. Oil production at its highest in nearly 3 decades, Crude may have a tough time rallying back above $90 a barrel…soft Oil prices could also put a crimp in the U.S. energy boom…at $90 a barrel and below, many hydraulic-fracturing projects start to become uneconomic according to a recent report by Goldman Sachs…while fracking costs run the gamut, producers often break even around $80 to $85…
One bright spot here – Gold producers stand to benefit from lower Oil prices which form a significant part of their cost structures…Canadian producers are also benefiting from a weak loonie…
All the talk about Federal Reserve “tightening” by as early as the spring or the middle of next year may not amount to a hill of beans as the U.S. obviously isn’t immune to global forces, and the American recovery has been less than robust to begin with – any major sell-off in equity markets won’t help matters…
Today’s Equity Markets
Asia
Asian markets were down significantly overnight with China’s Shanghai Composite retreating 15 points to snap a 7-session winning streak that took the index to its highest level since February 2013…caution set in ahead of a raft of September data next week…
Japan’s Nikkei average hit a fresh 2-month low, dropping for a 4th straight session ahead of a long weekend in that country…
Europe
European markets are down sharply in late trading overseas…remarks yesterday from ECB President Mario Draghi didn’t help stocks…speaking at the Brookings Institute, he reiterated that quantitative easing would not be effective without economic reforms, and warned of deflation risks…widely followed investor Dennis Gartman had this take on Draghi’s comments: “As the world awaited a hoped-for clear and precise statement that the ECB was prepared to actually take action on monetary policy and become expansionary, it instead heard a lecture explaining that he and the others on the ECB’s monetary policy committee had done all that they could do to try to strengthen the economy there and that the real battle had to be waged by the political authorities to reform the sclerotic nature of the economies there.”
North America
The Dow is up 9 points as of 8:00 am Pacific, reversing earlier losses after touching its 200-day moving average (SMA) this morning for the first time since the August low…yesterday marked the third day the Dow has seen a move of more than 200 points, the longest streak since August 2011, a month marked by extreme stock market volatility due to the U.S. debt-ceiling crisis…after a streak of 19 straight sessions without a triple digit move, there have been 12 of them in the Dow’s last 18 trading sessions…meanwhile, the S&P 500’s decline yesterday was its worst in 6 months, pushing the index below its 150-day moving average (SMA) for the first time since November 2012…
The TSX has tumbled another 215 points as of 8:00 am Pacific where it may find support at its rising 300-day SMA (14107)…the Venture is down 13 points at 824 as it inches closer to the next major support level at 800…
VIX Chart Update
The “Fear Index” has generally been making higher lows since mid-July and yesterday broke above a resistance band between 17.50 and 18.00…the VIX is now up against RSI(14) resistance at 63% – a move above this area would certainly be negative for equity markets…
CRB Index Updated Chart
A fresh look at the CRB (2.5-year weekly chart) reveals that this index is touching strong support – the question is, will it hold that support or crash below it?…with SS already very oversold and RSI(14) at its lowest level (30%) since the June 2012 low, one could argue that the CRB could be close to an important reversal – especially if it can break above the downtrend line in place since June…since then, the index has tumbled 12%…another view is that the CRB is at risk of falling further…support does need to hold at the lows of late last year and the beginning of January…
Doubleview Capital Corp. (DBV, TSX-V) Update
All things considered, this has been a good week for Doubleview Capital (DBV, TSX-V) which on Monday reported its best drill results to date at the Hat Property in the Sheslay district, with the Lisle Zone remaining open for expansion in all directions…more drilling begins shortly to follow up on the discovery of higher grades (118 m of 0.55% Cu and 0.41 g/t Au in HAT-22) in the Sheslay red stock…the Hat continues to demonstrate robust geological potential – only 22 holes have been drilled at this new discovery – a few more holes could produce a major breakthrough, one that could also deliver a dose of much-needed confidence to the beleaguered junior exploration sector…
Technically, DBV is underpinned by strong support including rising 50 and 300-day SMA’s as shown on this 3-year weekly chart…patient investors could be handsomely rewarded by Doubleview’s tenacity and the spirited drive of their management and technical team…
Calibre Mining Corp. (CXB, TSX-V) Update
As we mentioned previously, when you see an exploration stock hold up well in the current Venture environment, you know you’re looking at a quality opportunity – so it should come as no surprise that Calibre Mining (CXB, TSX-V) recently attracted a major new investor (Peter Lassonde) to help it build on the success it’s enjoying in Nicaragua…
CXB has managed to overcome chart resistance at 15 cents and closed at a new multi-year high of 19 cents yesterday…it has backed off slightly this morning, down 1.5 cents at 17.5 cents through the first 90 minutes of trading…
Benton Resources Inc. (BEX, TSX-V)
We encourage our readers to check this out – there was an innovative deal announced earlier this week by Benton Resources (BEX, TSX-V) which entered into an LOI with Nordmin Engineering Ltd, a private Thunder Bay-based company that has grown remarkably over the last decade…the aim of the deal is to advance toward production 4 of the 6 Gold deposits at Benton’s Cape Ray Project located in southwest Newfoundland, should the economic viability of the project be determined…
Nordmin President Chris Dougherty stated: “Nordmin is exceedingly pleased that we have been able to establish this partnership with Benton. This is, to the best of our knowledge, the first arrangement of this type made in the mining industry here in Canada (our emphasis). By providing the engineering, construction and operational know-how to Benton’s renowned expertise in prospecting, exploration and geological development, we have established a formidable team that could become a model for other junior explorers. Creativity brings opportunity, and we are very pleased to be part of this opportunity.”
Benton, which had working capital of nearly $7 million at the end of March (latest financials), has approximately 80 million shares outstanding and closed yesterday at 6 cents…below is a 2-year weekly chart showing base support at a nickel and a 200-day SMA that has flattened out at 6.5 cents…as always, perform your own due diligence…
Note: John and Jon both hold share positions in DBV.
When a woodsman falls a tree he shouts timber, to warn
anyone nearby, today the best i can do regarding the
Venture is shout, watch out below. A good indication
of how bad it is out there, is the lack of IR personnel,
i have called a couple of companies lately & guess what,
i got to speak with the CEO. Regarding the Venture
bouncing back with vengeance, my argument would be that
half the companies out there are trading below a nickel,
& are unable to find the almighty dollars, so no money,
no drilling, no rumors, no news releases & as a result,
not much activity & lack of activity, won’t bring the
market back with vengeance.. I hope i am wrong, but it
is my thought for today. By the way, the record will
show that i previously stated that charts can’t always
predict the future with certainty, but aren’t they very
accurate, when it comes to the past. Have a good weekend,
it will be a relief to get away from the market for a
long weekend.
Comment by Bert — October 10, 2014 @ 7:19 am
As always Bert – bang on… worrisome but bang on.
Comment by Jeremy — October 10, 2014 @ 7:43 am
Oh how I remember 2007 when the TSX.V market went on a serious drop after making a double top. Nothing was stirring, not a mouse, not a rant. Then out of nowhere came Noront. Oh I remember the day of Fancamp a nieghbor, and a 10 bagger in 3 days. I remember sitting there looking at it at .33 and saying the old mind game “should I buy”. My nerves were not made of steel then, nor are they now. Oh but how my mind learned the games we play. We hear follow the pattern, follow the money, follow the charts. Learn, learn, learn is what that experience taught me. So as I look at the 10 year chart of the TSX.V, I see a perfect “head and shoulders” between 2008 and now. As I have learned to trade off the above, I have learned one more thing. Anticipation, a silly thing some may say. I can anticipate the TSX.V doing a double bottom to the 2008 level. This will probably take the rest of the year on a daily basis to happen, none the less, it may. Bert is so right on the past history of charts. So as I anticipate what may happen, my eyes are always glarring for opportunity, and of coarse a Noront Jr. to surface. We all should live for that day because it is sure to come. I’m not quite as poetic as you Bert. Sorry
Comment by dave — October 10, 2014 @ 8:08 am
its been out there all week,they say the markets were due for a 10%correction,ggi has all the things your looking for,cash,drilling,results pending,no debt,daa!i’m with jon’s gut with this play,takeing a bit longer,but i think steve is a smart guy and wants to get this right.
Comment by tombc — October 10, 2014 @ 9:12 am
Dan
You don’t have to be poetic to make a point my buddy. Anyway,
bad news here & bad news there, but let’s be clear, things
will change, hopefully this year. Here’s the latest, which
may have a negative impact on the Sheslay.
Imperial Metals (T.III) faces more uncertainty as court rules on British Columbia mine blockade
Peter Kennedy Peter Kennedy, Stockhouse
2 Comments| 22 hours ago
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Uncertainty continues at Imperial Metals Corp. (TSX: T.III, Stock Forum), even after the company secured a temporary court injunction this week against a group of blockaders that are preventing the company from bringing fuel and equipment to its Red Chris gold-copper mine in northwestern British Columbia.
Although the British Columbia court decision was handed down on October 8, 2014, it cannot be enforced by the RCMP until October 14, 2014.
According to a court order obtained by Stockhouse, any decision on whether the injunction becomes permanent depends on the outcome of another hearing that will take place in Terrace, B.C.
The defendants named in the suit include Rhoda Quock, a member of the Tahltan Central Council, who heads a group called the Klabona Keepers. Also named is Kanahus Manuel, a member of the Secwepemc First Nation, which resides in B.C.’s Shuswap region.
Imperial Metals spokesman Steve Robertson said the hearing has been moved to Terrace to give the defendants named in the dispute additional time to prepare and present further arguments for keeping the blockade in place.
The Tahltan Central Council said moving the next court appearance to Terrace would make it easier for people to attend.
The blockade is a reflection of concerns that stem from a tailings dam breach at Imperial Metals’ Mount Polley mine in central B.C., which failed last month, releasing millions of cubic metres of waste water and silt into several lakes and rivers.
The spill raised concerns about the potential impact on humans and the environment, placing the company and the entire mining industry under increased scruntiny.
Several days after the spill, the Tahltan elders established a blockade at the Red Chris site, which is expected to open by the end of this year.
Meanwhile, Imperial Metals was scheduled to host a community meeting in Likely, B.C. on October 9, 2014 to give local residents an update on ongoing environmental monitoring in the vicinity of the tailings site.
Under a pollution abatement order issued by the B.C. Environment Ministry on August 5, 2014, a comprehensive environmental impact assessment of the impacts associated with the tailings spill is currently being carried out.
The community meeting will be attended by officials from both the Federal and provincial governments, including officials from the Federal Department of Fisheries and Oceans.
Robertson said the company is unable to say what caused the breach to occur.
Meanwhile, the Tahltan released its own update on the Red Chris situation, saying that no agreements will be made with [Imperial Metals subsidiary] Red Chris Development Company Ltd. until Tahltan people have a chance to vote on the matter.
In recent reports, analysts said Red Chris is a considerably larger mine than Mount Polley, and is therefore much more important to the company’s future.
However, the tailings spill at Mount Polley, combined with a First Nations Blockade at Red Chris is raising concerns about how quickly production will get underway at Red Chris, analysts said.
Read more at stockhouse website
Comment by Bert — October 10, 2014 @ 9:21 am
lots of volume AIX today no share price movement.
Comment by BRIAN — October 10, 2014 @ 10:39 am
Glad to see that John just recently got into DBV again! A few days ago the disclaimer indicated that only Jon owned a position in DBV.
Knowing that John trades on technical analysis, it is probably safe to assume that he sees DBV moving higher from here.
He was right last time and made good money on DBV so lets see if he has it right again…..I believe he will be right again based on my DD….financing to come very soon, 20 holes planned to be drilled before winter with 2 to 3 rigs! A lot of action on the Hat before winter sets in!!!
Comment by goldbull636 — October 10, 2014 @ 11:14 am
Tombc
As mush as i want to show respect for Jon, i just can’t
afford to buy on his gut feeling. I have a good position
in GGI & am depending solely on their Mexico play, as i
feel they will not be drilling the Sheslay this year. I
only had a small position in DBV & got rid of it today.
Sorry, but i just couldn’t get a good feeling for that
play, not enough to hang onto it…
Comment by Bert — October 10, 2014 @ 12:05 pm
Goldbull, did you get that information from Farshad?
Comment by chris — October 10, 2014 @ 12:47 pm
Yip,I agree Bert, guess what I meant was the gut feeling, we should get something out of Mexico real soon,as we should cause it’s been over 2 months now, as for grizzly, if they get set up for a winter program, we may get results in the new year.i’m like you, rodadero is what I’m waiting for. Dbv will take another round of drilling befour it makes a big move up.
Comment by Tombc — October 10, 2014 @ 2:32 pm
Keep your eyes on Fancamp (fnc.v) during these troubled times for the venture. An announcement from Chinese scientists regardling metallurgy testing/results from their Magpie deposit is due this fall. Could be the “catalyst” the venture really needs.
Comment by tony t — October 10, 2014 @ 2:52 pm
VRY fell 33% today to 0.06 cents on heavy volume. This stock IPO.ed in July @ 40 cents,
Now a few months later one can buy it for 6 cents. These are the types of opportunities one ONLY
Gets now as a result of “broken” venture exchange conditions.
Insiders scooped up over 1.1 million today, do your own DD and exploit the panic sellers!
Comment by Alphatrading — October 10, 2014 @ 7:26 pm
Chris-its recent second hand info that came from a reliable source but others have also verified it through him….its heavily dependant on funds and time remaining before the cold kicks them out again. We should hear about the financing soon which I heard isn’t an issue and we should also hear about the drilling plan soon. I heard he has people already on the site getting things ready to drill.
Comment by goldbul636 — October 11, 2014 @ 5:41 am
Thanks goldbull. I appreciate it. I guess we’ll be hearing something next week.
Comment by chris — October 11, 2014 @ 6:24 am