Gold is testing support around the $1,700 level…as of 6 am Pacific, the yellow metal is down $17 an ounce at $1,706…Silver is 41 cents lower at $31.67…Copper is off 6 pennies at $3.53…Crude Oil is down 33 cents a barrel at $100.66 while the U.S. Dollar Index is up slightly at 78.72..
Events in the euro zone continue to guide the markets…yesterday’s bullish start to the week was tempered when S&P placed the ratings of 15 euro zone countries on credit watch negative citing “systemic stresses” in the region…U.S. Treasury Secretary Timothy Geithner arrived in Germany this morning for a three-day blitz of euro zone officials to urge them to take decisive action to backstop their currency union and resolve a crushing debt crisis…France and Germany appeared to make progress yesterday, reaching a “comprehensive” agreement on new fiscal rules for the beleaguered euro zone as a package of measures designed to save the single currency begins to take shape…the proposals, which include a commitment not to force private sector bondholders to take losses on any future euro zone bail-outs, were announced by “Merkozy” yesterday (German Chancellor Angela Merkel and French President Nikolas Sarkozy) in Paris…together with tough budgetary measures drawn up by Mario Monti’s new Italian government, they will form part of the “fiscal compact” demanded by the European Central Bank to enforce budgetary discipline in the single currency region…ECB President Mario Draghi has hinted that such a compact could be followed by aggressive action by the central bank to stop the recent crippling flight from euro zone sovereign debt…a more active ECB should be bullish for Gold and the markets in general…
Dow futures are pointing to a slightly higher open this morning…the CDNX jumped as high as 1561 yesterday, just below its still-declining 20-day moving average (SMA), but closed down 4 points at 1553 at its 50-day SMA which is now reversing to the upside…it would be bullish for this market to find support at current levels…at the very least, 1500 must hold…a year-end rally that takes out resistance between 1575 and 1700 is on the bulls’ Christmas wish list…
Canada Rare Earths (CJC, TSX-V) enjoyed a powerful day yesterday, climbing as high as 68 cents before closing at 63 cents on CDNX volume of 1.6 million shares…
We suggest readers perform due diligence on Rainbow Resources (RBW, TSX-V), a 1-year old CDNX company led by a powerful group mostly out of Calgary…it now has a major project to cut its teeth into, a slew of promising Gold-Silver-lead properties in a rich historical mining area in southeastern British Columbia…at 15.5 cents, the company’s current market cap is just under $4 million….we expect RBW to raise some money and aggressively tackle its land package, in particular its flagship International Property which interests us because of its Silver potential…a successful group is behind RBW including prominent Calgary businessman Robert Libin and mining veteran Jim Decker of Grande Cache Coal fame…technically, the stock’s 10, 20, 50 and 100-day moving averages are all in bullish alignment and a jump in volume is also a positive sign…
Focus Metals (FMS, TSX-V) has an attractive high-grade graphite deposit (Lake Knife) near Fermont, Quebec, and yesterday the stock jumped 14 cents on release of an initial 43-101 resource estimate for the project…an expanded, deeper and more comprehensive drilling program is planned for the spring of next year to upgrade and expand resources…FMS does face some technical headwinds, so we see no need to chase this at the moment, but it’s a stock worth keeping on one’s radar screen as the technical picture could brighten significantly during the first quarter of next year…a near-term breakout can’t be ruled out, as John outlines below, but it’s also possible a very attractive entry point could open up around the current 50-day SMA of 65 cents given the current technical picture…that price coincides with the strong support band John refers to in the chart below…
John’s other chart this morning is on the Volatility Index (VIX) which investors need to keep a close eye on…of course it measures fear (and greed) in the market…a breakdown in the VIX chart (VIX readings in the low 20’s for example) is essential for a year-end rally in the markets to materialize…we’ll likely get the answer to that very soon…
Thanks for your TA on FMS. This one has incredible potential. They have offtake agreements in the works that could bring in a huge breakout.
Comment by pete — December 6, 2011 @ 6:59 am
sorry Bruce, lol
Comment by dave — December 6, 2011 @ 7:45 am
Whatever happened to all the stocks that you guys updated daily for months on end? CUI, SD, GBB etc. Seems like they have fallen off of the map. Could you please provide and “updated” portfolio?
Comment by mike — December 6, 2011 @ 8:11 am
ABI ?????????
Comment by Frank Speaker — December 6, 2011 @ 10:02 am
I’m surprised nobody mentioned SD and their Proxy votes…
BMR care to discuss details?
Comment by marc — December 6, 2011 @ 10:19 am
Maybe BMR should do an update on Trueclaim. I think there are rumblings of something happening here. Look at the volume today. TRM has two excellent properties, and having weathered the recent storm should be ready to drill their arizona property.
John Carter is very capable of putting Scadding into prodution down the road. He put over 200+ processing and fabrication systems ( mills ) in globally over a 30 year period in his own private company. You tell me another pres in the TSX.V that has that work resume! Producing au in Ont. and first thought of silver property ( very high grade samples and historic assays in arizona ) has now also added a copper-gold component to the property. It could get interesting. Very good geo team in the company, and they do not cut any corners in their work. For you bottom feeders out there you should be looking at this company for .10 – .11 cents. The deals are out there a person just has to there own dd.
Comment by George — December 6, 2011 @ 10:53 am
For Mike and marc, what do you expect BMR to say?? That they picked a bunch of LOSER stocks, and now are speechless?? Sure looks that way, doesn’t it? Now they discuss stocks that are moving, AFTER the FACT!! I loaded up on DNI Metals 2 weeks ago at .15, and now it’s at .40, I mentioned EPO, and it too is doing very well. All those stocks, and SFF included are ALL at their 52 week lows are almost there. I have a stink bid on GBB for .10, and for CUI at .03, those are good entry points to FLIP!! Take a stab at VGN at these levels, you WILL BE REWARDED!!! SOON!!
Comment by John — December 6, 2011 @ 1:46 pm
Trueclaim is working hard, George – it has a capable team and definite long-term potential. I’ve spoken to Carter on a couple of occasions and he’s solid, so I think you’re right on the money with your analysis. Thanks for the reminder and we’ll be doing an update on TRM later this month.
Comment by Jon - BMR — December 6, 2011 @ 1:56 pm
Hi Mike, it’s that time of the year with tax-loss selling and not a lot of news. CUI is expecting results soon from Sekenke, and some additional results from Mabale Hills. Drill results earlier from Mabale were clearly disappointing, but Sekenke is really the flagship of their Tanzanian land package. It will take time to explore Sekenke properly. Personally, I think it’s time for CUI to add a new project and I’m confident they will do that. The company has been around for 40 years, so they’re not about to disappear. They have over $1 million in the bank, so they have the ability to do a few things in the coming months to increase shareholder value. John did a long-term chart recently on CUI. It has strong support at current levels. GBB’s problem this year has been inefficiencies on the ground (GENIVAR) and the lack of an initial 43-101 resource estimate which was promised by early summer. It appears they have those problems fixed with a new geological consultant, so we should see a rebound in 2012. The potential of the LONG Bars Zone is as solid as ever. Strong chart support around current levels. We’ll update some other situations in the coming days including AGE, GQC and others.
Comment by Jon - BMR — December 6, 2011 @ 2:04 pm
OMG!! BMR has been saying ” strong support at these levels” for these stocks for MONTHS NOW!! Only to see the ” support” go LOWER AND LOWER!! Yes the POTENTIAL is at Long bars, but can management EXECUTE the plan?? The share price tells the STORY!! I thought ” support” for GBB was at .30?? REMEMBER Jon??? Yes please MORE charts, as if we can’t see the UPPER LEFT hand line down to the LOWER RIGHT HAND line of these stocks… NOW CUI must add to their property portfolio?? As if that is going to help.
Comment by John — December 6, 2011 @ 2:19 pm
Johnny
This is a true story & you remind me of the person involved.
It was in the telegram days, this salesman, who also sold eggs,
found he was out of stock, not having received promised shipments.
His first reaction was to send an inquiry via telegram to the egg
company. The longer he waited for a reply, the more anxious he
became & the more anxious he became, the more telegrams he sent,
until finally a reply was received, which read a follows:
Telegrams’ won’t make the hens lay.
Comment by Bert — December 6, 2011 @ 3:03 pm
Would love to hear an audio interview with RIC or GPL.
Comment by Michael — December 6, 2011 @ 4:07 pm
We last interviewed Martin from RIC in September……..we’ll do a follow-up interview with him early in the New Year. Richmont should have a strong finish to December as I’m expecting a 2 million ounce number out of Wasamac in the updated 43-101, due by mid-month, plus other potential good news. Speaking of interviews, we spoke today with CEV’s Brett Matich and we’ll be interviewing him Thursday morning, for posting likely on Friday. Stay long on CEV. Keep a close eye on RBW, with the people behind it and their Silver property this could be a star in 2012. John has charts pre-market tomorrow for AGE and SPA.
Comment by Jon - BMR — December 6, 2011 @ 5:04 pm
BMR
So pleased that you have taken the initiative to arrange an interview with Mr Matich.
Thank you ! R !
Comment by Bert — December 6, 2011 @ 5:51 pm
CJC
Maybe i was a bit too quick in stating that i may have been wrong in calling
for CJC to move back down, but i did call for it to happen the first part of
the week. Today, being the first part of the week, i noticed CJC closed below
it’s opening price & 0.11 below it’s high for the day. I would watch it closely
tomorrow , especially in this darn market. As i mentioned sometime earlier, i
am correct with my calls some of the time. Good night !
Comment by Bert — December 6, 2011 @ 7:20 pm
Wheres Dave the head cheerleader for CJC did he get out at 70?
Comment by Dan — December 6, 2011 @ 8:09 pm
Bullish chart forming over at T.AZ if anyone wants to have a look. Maybe not as good as CJC or CEV but hopefully headed the same way. Breaking out above its 200 day moving average. Relative Strength increasing to 59 and bullish accumulation happening. Still some shares left though if you want some. 🙂
Comment by Ed — December 6, 2011 @ 8:59 pm
nope, Bruce asked me to stop posting, so I did. A normal breather day for CJC, they do’nt keep going up everyday Dan. I will keep cheerleading, and you can keep watching.
Comment by dave — December 6, 2011 @ 9:24 pm
You’re welcome, Bert. It’s a great story. Had an excellent discussion with Brett yesterday and the interview will take place tomorrow morning. There’s no question in mind after doing all the DD on this that CEV is a keeper – what’s shaping up at Block 103, which represents under 10% of their land package, is quite likely one of the world’s top 5 iron ore deposits and potentially the largest. This is consistent magnetite over a very, very wide envelope, a flat-lying deposit with a low strip ratio. The economics of this could become even better if they get good results on the DSO from another part of the property. The fact that Forbes & Manhattan Inc. has stepped in is huge. They’re not in for pennies. Current market cap just under $50 million. This is just getting started IMHO.
Comment by Jon - BMR — December 7, 2011 @ 3:40 am
CEV
Although the market showed it’s excitement on the day of the recent CEV financing, i have a
feeling that the price will hang around yesterday’s trading range, until the financing is closed.
Whatever, it’s a good stock to own. R !
Comment by Bert — December 7, 2011 @ 4:25 am
I would agree with you, Bert, which makes this a great time to accumulate…it’s likely range-bound until the PP closes, then watch out late December into January…
Comment by Jon - BMR — December 7, 2011 @ 5:01 am