BullMarketRun.com

Gold is recovering slightly (up $3.00 an ounce to $1,131 as of 7:00 a.m. Pacific time) after yesterday’s sharp sell-off that may have taken some investors by surprise…it’s important to point out, however, that gold’s 14-day moving average – a very reliable technical indicator – swung positive just recently and continues to rise, so we believe gold will find strong support at current levels ($1,120 and above) and resume its uptrend…the TSX Gold Index is still in very oversold territory where major moves have started from before…the CDNX is up five points this morning to 1,582 after yesterday’s 31-point drop…we’ve seen pullbacks of a few percent to as much as about 10 per cent in the Venture over the past year, and each time that weakness has been a great buying opportunity…the CDNX is down about 3.5% from its 1,629 high Monday which quite possibly could be the extent of this pullback…we’ve added Greencastle Resources (VGN, TSX-V) to our portfolio and the company is now drilling its first well in the Boggy Lake-Cabri area of southwestern Saskatchewan…we expect good things out of Greencastle in the days and weeks ahead…Kent Exploration (KEX, TSX-V) released encouraging trench assays from its Alexander River gold project in New Zealand yesterday and the stock closed at a new 52-week high of .245, a 50% gain from when we initiated coverage last October…Gold Bullion Development Corporation (GBB, TSX-V) is off half a cent this morning to .11…any weakness must be viewed as a buying opportunity with GBB given our assessment of that situation…