Gold has enjoyed a strong start to 2012 though a slight pullback could be in order after some resistance was encountered at the $1,665 level last week…Gold, which is up 8% from its December 29 low, has gained $3 an ounce to begin the new week and is trading at $1,642 as of 6:00 am Pacific…Silver is 6 cents higher at $29.83…Copper is up 2 cents to $3.65…Crude Oil has gained 62 cents to $99.32 while the U.S. Dollar Index is off one-fifth of a point to 81.44…
U.S. stock markets are closed today as the nation pauses to remember the Rev. Martin Luther King Jr. who would have turned 83 this year had a bullet not cut short the civil rights leader’s life…
Asian markets were off by more than 1% today but trading in Europe is generally slightly positive despite Friday’s mass credit downgrade of euro zone countries which was not unexpected…Late on Friday, Standard & Poor’s cut the ratings of Italy, Spain, Portugal and Cyprus by two notches and France, Austria, Malta, Slovakia and Slovenia by one notch each…
The TSX Venture Exchange has climbed in 7 out of the first 9 sessions so far this year…it begins the new trading week at 1536 though volume today will be light due to the U.S. holiday…as we mentioned in our Week In Review, the overall technical health of the CDNX is improving…if we’re correct in that analysis, we’ll see a breakout in the Index through 1575 sometime this quarter and likely within the next month…be prepared first however for the possibility of a test of the “neckline” as John showed in yesterday’s chart which could mean a drop of 3 or 4% from current levels to just below 1500…we would view such a modest pullback, should it occur, as a last-chance buying opportunity before the Index marches higher…we’ll see how things play out…
There are bullish signs as well in the TSX which has broken out above a downtrend line…
Another market we’re looking to for clues with regard to a global stock market recovery is China where the Shanghai Composite Index jumped 5% last week…it gave up 38 points or 1.7% today to close at 2206 but evidence points toward a strong recovery in Chinese stocks…that’s actually a good sign for the Venture Exchange as both markets have a speculative bent to them and have followed similar trading patterns in recent years…below is a chart from John on the Shanghai Index after Friday’s close…
We’ll have more on China tomorrow…
Cap-Ex Ventures (CEV, TSX-V) has closed the second and final tranche of its private placement financing announced December 2…total proceeds raised, at 85 cents, came to $10.2 million…Cap-Ex has made a significant iron ore discovery near Schefferville, Quebec, and more results from drilling late last year are expected in the near future…we like how this story is unfolding…Cap-Ex gained 9 cents Friday to close at 96 cents…
As the week progresses, we’ll be unveiling more individual situations as part of our new “strong play” list and “watch list”…Cap-Ex is one of our “strong plays”…another situation we’re keeping an eye on is Focus Metals (FMS, TSX-V) for which John has a chart update this morning…FMS closed at 81 cents Friday…
U.S. Gold Corp. (UXG, TSX) jumped 62 cents last week and its chart continues to look bullish which bodes well, we think, for the overall sector…below is an updated UXG chart after John’s initial chart Friday…
GBB has adjusted to 17.5 cents and will move back to 21 cents level in a matter of days.
Comment by Theodore — January 16, 2012 @ 6:58 pm
time to load up, stuff must coming down the pipeline with all those purchases from cannacord?
Comment by alec — January 16, 2012 @ 7:15 pm
New materials on properties tab of rainbow resources web sites!
Martin
Comment by Martin — January 16, 2012 @ 7:48 pm
Martin, what Rainbow hasn’t announced yet or included on its site, which BMR has just obtained through B.C. Energy and Mines, is some very interesting historical production numbers from the company’s Ottawa Property. We have just sent out an eAlert regarding this. Rest assured, RBW is not sitting on cow pasture – they have assembled a fabulous land package, and I see them drilling right into high-grade near-surface showings. Ottawa Property was the #1 former producer in the Slocan Mining Camp (Silver, lead, zinc, Gold and copper) with total Silver production of nearly 2 million ounces at a grade of 2,113 g/t Ag (74.5 ounces). The market is heating up and RBW is going to be a terrific play. John has an updated chart this morning.
Comment by Jon - BMR — January 17, 2012 @ 4:03 am
Thanks Jon!
Comment by Martin — January 17, 2012 @ 2:35 pm