BullMarketRun.com

Gold is recovering today after dropping about $100 an ounce over four trading sessions…as of 8:45 am Pacific, the yellow metal is up $19 an ounce at $1,492…Silver, which endured its biggest one-day drop since 1980 yesterday, fell again this morning and touched nearly $33 an ounce before finally rebounding…it’s currently up $1.35 to $36.01…the amazing drop in Silver this week was magnified by traders and investors who sold out of sheer panic or who were forced to sell due to margin calls…the U.S. Dollar Index, which rallied sharply yesterday, is up another one-fifth of a point at 74.26…a sustained rally in the U.S. Dollar, which is possible, could put additional downward pressure on commodities over the short-term though we have seen periods when the U.S. Dollar and Gold have both climbed higher together…public opinion has never been more negative on the greenback since 2003…turnarounds or rallies are born in conditions of extreme bearishness…Goldman Sachs, which last month predicted this week’s major correction in oil prices, said this morning that oil could surpass recent highs by next year due to supply tightness…the Wall Street bank, seen as one of the most influential in the commodities business, said it did not rule out a further limited decline in oil prices in the short term…markets are getting a boost today from a positive though somewhat deceiving U.S. jobs report which showed that employment increased significantly more than expected last month as private companies created jobs at the fastest pace in five years…job growth, however, barely kept up with the expansion of the labor force and the jobless rate rose to 9% which underscores how difficult it’s going to be to put a serious dent in the unemployment rate…nonfarm payrolls rose 244,000 last month, the most in 11 months, according to the Labor Department but that number was aided by a move from McDonald’s to hire 50,000 new workers…the private sector accounted for all of the job gains last month with payrolls rising 268,000, the largest rise since February, 2006…April marked seven straight months of net job creation in the U.S. but 13.7 million Americans remain out of work…another measure of unemployment rose as well –  the so-called “real” unemployment rate, which increased to 15.9 percent, up two-tenths from the prior month…the government calls the rate the “U-6” and it measures not just those looking for work and unable to find jobs but also those “marginally” attached to the labor force and those who are working part-time but who want full-time work…U.S. home prices have double-dipped nationwide and are now lower than their March, 2009 trough, according to a new report from Clear Capital…due to the fragile economic recovery, debt issues and global risks, there can be little doubt we’re in an extended period of very accommodating monetary policy from the Federal Reserve which should prevent any kind of a market meltdown…the CDNX almost touched its 200-day moving average (SMA) yesterday, reaching a low of 2045, and it did hit extreme oversold RSI conditions which strongly suggested a low was being put in…the CDNX is sharply higher this morning, up 49 points to 2097…RSI(2) can be very effective in picking market lows as John illustrates in this chart…

Currie Rose Resources (CUI, TSX-V) staged a bullish reversal yesterday on CDNX volume of 1.1 million shares…we believe this could be a superb month for Currie Rose as exploration resumes on its properties in Tanzania…we are particularly excited about CUI’s Sekenke Project which runs in between and surrounds two former high grade Gold mines including one of Tanzania’s original producers (140,000 ounces of Gold with an average grade of 15.4 g/t Au)…the ground immediately surrounding these former mines has to be considered highly prospective…indeed, Currie Rose has already identified a large structure (12 km x 800 metres) within a shear zone on the margins of a large granite intrusion that hosts numerous quartz reefs of the same type and even larger than those that developed at the nearby historic mines…the company has a map of this on its web site and it’s quite stunning…the Sekenke Project is in the prolific Lake Victoria Gold Fields of northwest Tanzania where numerous major deposits exist…the chart, which includes the completion of a “cup with handle” pattern, and the fundamentals both suggest Currie Rose is about to head higher…it’s currently off half a penny at 15.5 cents…Visible Gold Mines (VGD, TSX-V) appears to have found a bottom at 29 cents, just above its rising 500-day moving average (SMA), after hitting extremely oversold levels this week based on RSI and Stochastics…it’s currently up half a penny at 31.5 cents…20 cents appears to have been the bottom on GoldQuest Mining (GQC, TSX-V), as predicted, as it too fell into extreme oversold conditions…GQC is up 2 pennies at 23 cents…Gold Bullion Development (GBB, TSX-V) is an absolute gift below 40 cents in our view…it’s up a penny at 39 cents after dropping as low as 37.5 cents in yesterday’s sell-off…it’s amazing how investors can sometimes throw fundamentals completely out the window…GBB is edging closer to a 43-101…there is no denying the multi-million ounce potential of the LONG Bars Zone which makes the risk-reward ratio on GBB at the moment incredibly attractive…