Gold came under significant pressure overnight, giving many investors a Halloween scare by falling below the key $1,180 area this morning which triggered stop-loss orders and pushed the price down as low as $1,161 (see updated chart below)…as of 8:00 am Pacific, bullion is down $35 an ounce at $1,164…Silver, which has strong long-term support around $16, is off 54 cents at $15.92…Copper has lost 2 pennies to $3.08…Crude Oil is down $1.26 a barrel to $79.88 while the U.S. Dollar Index has surged nearly a full point to 87.04 and appears to be on track to test Fib. resistance around 88 as John’s charts have consistently shown…this could certainly come as early as next week, especially if Republicans gain control of the U.S. Senate…the greenback got an immediate boost late last night on unexpected easing measures from the Bank of Japan…the BOJ, worried about deflation, cited concerns that a decline in Oil prices would hurt consumer prices…that saw the yen weaken to a 6-year low against the Dollar, but Japanese stocks took off like a rocket…
Gold is set for its biggest weekly decline, about 5%, since June of last year – a time, actually, when it was smart to be a buyer, not a seller…hawkish comments from the Fed Wednesday and stronger-than-expected U.S. GDP data yesterday have hurt Gold’s appeal and the bears have definitely gained downside price momentum, but at some point – the big question is at what price – a sudden reversal in bullion will kick in…the market will be looking for evidence of a jump in physical demand from Asia to support prices…however, premiums on the Shanghai Gold Exchange, the main platform for physical trades in China, slipped today to less than $1 an ounce, even occasionally dropping to a discount against the global benchmark represented by the London spot price…
Reflecting bearish investment sentiment, holdings in the SPDR Gold Trust, the world’s largest Gold-backed exchange-traded fund, fell to a new 6-year low yesterday of 741.20 tonnes – a bullish sign, however, if you’re a contrarian…
Today’s Equity Markets
Asia
Japan’s Nikkei average surged a whopping 756 points or 4.8% overnight to close at 16414…the Japanese central bank increased the pace at which it expands base money to about $726 billion per year…separately, Reuters reported that a government panel approved plans for the Government Pension Investment Fund (GPIF), the world’s largest, to raise its allocation of domestic stocks to 25% of its portfolio from 12% currently…just how smart (or foolish) that move proves to be – the world’s largest pension fund chasing a runaway stock market – remains to be seen…
China’s Shanghai Composite climbed 30 points or 1.25% to finish the week at 2421, the highest level since February of last year…earlier this week the government unveiled measures to boost consumption…
Europe
European markets are up sharply in late trading overseas, taking their cue from Asia and New York…euro zone inflation ticked up in October, bringing some much needed relief for the European Central Bank, although the rate remains well below its target of around 2%…consumer prices rose by 0.4% year-on-year in October, according to official statistics published by Eurostat this morning…the figure met analysts’ expectations, and marked a slight rise from September’s 0.3%…
North America
The Dow has jumped 172 points as of 8:00 am Pacific, hitting a new intra-day record…U.S. consumer sentiment rose in October to its highest level since in more than 7 years on growing optimism about the economy and more favorable personal financial expectations, a survey released this morning showed…the Thomson Reuters/University of Michigan’s final October reading on the overall index on consumer sentiment finished at 86.9, the highest level since July 2007, up from 84.6 at the end of September…
The TSX is up 144 points while the Venture is down 9 points at 762 after touching support at 760…it’s possible the Venture may have already “baked in” most of the downside moves in Gold and Oil…
Gold Updated Chart
A 2-year daily Gold chart gives a clear picture of where the next major support levels are for bullion – $1,150, $1,065 and $1,000 – in the event there is a confirmed breakdown, which appears quite possible, below $1,180…
TSX Gold Index Updated Chart
The TSX Gold Index has hit its lowest level in 13 years and has also fallen below an RSI(14) uptrend that was in place since the beginning of 2014…weak Q3 financial results out of Yamana Gold Inc. (YRI, TSX) and others didn’t help yesterday, and Barrick Gold Corp. (ABX, TSX) has fallen to a 20+ year low…
The Gold Index has long-term support around 137 – we’ll see if that can hold on a closing basis today…indeed, the Index is trying to rally after hitting a low of 131 this morning…it’s now off 5 points at 135 after frightened investors dumped their Gold stocks overboard (perhaps foolishly) at the opening bell this morning…but that’s how important lows are created…a bottoming process is occurring…we’ll see how this plays out next week…
CDNX Updated Chart
A negative divergence between RSI(14) and price is one clue in terms of identifying a potential reversal in the CDNX – in other words, a drop to a new low in the Index that’s not confirmed by a new low in the RSI(14)…a band of support exists between 760 and 770…if that is broken, it opens up the possibility of a re-test of the 2008 Crash low just beneath 700…
Diamonds In the Rough – North Arrow Minerals (NAR, TSX-V) Update
Any additional weakness in North Arrow Minerals (NAR, TSX-V), brought on by the current state of the Venture, should be considered an early Christmas gift, in our view, as diamond discoveries have kick-started the junior exploration market before and could do so again…North Arrow is working on numerous Canadian diamond projects (grassroots to advanced-staged), and the Pikoo play in Saskatchewan (winter drill program coming up) looks particularly exciting in terms of fresh district-scale possibilities with NAR leading the way and well-financed…with President and CEO Ken Armstrong, and Chairman Gren Thomas, among others, NAR features a highly respected management group and board – they’ve been responsible for the discovery of many kimberlites in Canada and Africa, including of course the Diavik mine in the Northwest Territories…
Results from a 1,500-tonne bulk sample from NAR’s important Q1–4 kimberlite at its Qilalugaq Project in Nunavut are expected during the first quarter of next year (at 12.5 hectares, Q1–4 is the largest kimberlite ever found in the eastern Canadian Arctic and includes inferred resources as well as extremely rare yellow diamonds found in a sampling program)…along with drilling at Pikoo, anticipation regarding results from this bulk sample could help give North Arrow a strong speculative lift…
Below is a very interesting 7+ year monthly NAR chart from John…note the long-term support at 50 cents, the rising 500-day moving average (SMA) at 54 cents, the long-term downtrend line, and the switch from sell pressure to buy pressure…given the technical posture here, and events on the ground, we see a strong likelihood of a major breakout in NAR (above the downtrend line) within the next 2-3 months…as always, perform your own due diligence…patient investors could score big with this one, and we’ll be focusing more on the Pikoo play during November-December…
NAR is up 4 pennies at 55 cents as of 8:00 am Pacific…
Note: John, Terry and Jon do not hold share positions in NAR.
Pinetree cap. dumping BGM this a.m. BGM has good value at current price range. Interesting fact about diamonds, they are becoming more popular with persons who want to transfer wealth as they go through airport checks with no problem. Richard l
Comment by richard lawrey — October 31, 2014 @ 7:27 am
I hope i am not offending anyone by posting too often.
I post as if you were here with me & we are having a
chat about the darn stock market. I notice the Venture
is moving up by 3/4 points, not much, but i’ll take it.
I am, like Jon, feeling optimistic about a change starting
November, but i think i started each month since January,
feeling that way, but if one stays in the sun long enough
he/she will get a tan.
Comment by Bert — October 31, 2014 @ 7:52 am
BLO.V down again this morning. It is certainly not what you would expect from a company that has a potential market maker in the marijuana prototype that has massive upside if approved.
Comment by Dan — October 31, 2014 @ 7:54 am
Could be good for Gold
State of Emergency Declared as Protests Erupt in Burkina Faso
Oct 30, 2014 02:40 pm
Burkina Faso’s president has declared a state of emergency and dissolved the
government in the country in the face of violent protests demanding his resignation.
As the country is Africa’s fourth-largest gold producer, miners with gold projects in
the region are no doubt watching the news unfold.
Comment by Bert — October 31, 2014 @ 8:37 am
Dan
I think someone mentioned a while back that there were a lot of restricted shares coming to market on BLO.V don’t know if that is what is the drop in price or not?
Comment by Greg — October 31, 2014 @ 8:41 am
Dan, I bought some more BLO today. I couldn’t help myself. Here is Level 2: After 9 cents there isn’t much stock for sale. Don’t hesitate to ask me to post it from time to time.
Bid:
11:03 6 343,000 0.06
10:59 2 120,000 0.055
08/26 6 179,000 0.05
10/09 3 80,000 0.04
10:59 2 200,000 0.03
10:59 3 258,000 0.025
10:59 2 129,000 0.02
10:59 2 129,000 0.015
10/24 2 6,000 0.01
10/30 5 803,000 0.005
Asks:
0.065 7,000 1 11:26
0.07 74,000 1 11:02
0.075 80,000 1 11:35
0.08 60,000 2 10:53
0.085 41,000 1 10/30
0.09 249,000 3 10/28
0.095 38,000 2 10/29
0.105 10,000 1 09:30
0.165 16,000 2 10/21
0.17 12,000 1 10/01
0.19 30,000 1 10/22
0.20 7,000 3 10/09
0.225 3,000 1 09:30
0.23 36,000 2 10/29
0.33 2,000 1 10/29
0.34 10,000 1 07/03
0.40 1,000 1 10/22
0.405 1,000 1 08:56
0.50 8,000 1 10/20
0.59 1,000 1 09/09
0.68 1,000 1 12:23
0.80 1,000 2 09/12
1.05 1,000 1 09/11
2.26 15,000 1 11:33
Ask Size # Time
0.065 7,000 1 11:26
0.07 74,000 1 11:02
0.075 80,000 1 11:35
0.08 60,000 2 10:53
0.085 41,000 1 10/30
0.09 249,000 3 10/28
0.095 38,000 2 10/29
0.105 10,000 1 09:30
0.165 16,000 2 10/21
0.17 12,000 1 10/01
0.19 30,000 1 10/22
0.20 7,000 3 10/09
0.225 3,000 1 09:30
0.23 36,000 2 10/29
0.33 2,000 1 10/29
0.34 10,000 1 07/03
0.40 1,000 1 10/22
0.405 1,000 1 08:56
0.50 8,000 1 10/20
0.59 1,000 1 09/09
0.68 1,000 1 12:23
0.80 1,000 2 09/12
1.05 1,000 1 09/11
2.26 15,000 1 11:33
Comment by chris — October 31, 2014 @ 8:51 am
I can tell you without a doubt that all stocks that I own are the only ones down!!!! bought blo at 19 thinking it had stabilized then boom to 12 then 8.. 3 days… yeh own bgm at 70 as well .. then halted for ever..
look in the dictionary – my pix with a stroke thru it…
anyone think this pile of crap we call the vulture will ever rise up from the ashes?? where is the confidence going to come from when the index has made paupers of middle class people twice in 6 years..
talk about a crap shoot… now if this is the voice of capitulation I dont know WTF is….. exhausted… pure and simple… and I know I am not alone.. but the tallest building I can jump from is a first floor dining room..:)
Comment by Jeremy — October 31, 2014 @ 9:14 am
Jeremy
Yes, the Vulture will rise from the ashes, but one thing is for sure,
a lot of stocks won’t rise with it. That’s why i have always stated
that the money pockets will come out of this unscathed. They have the
money, they have the power, they have the insiders in their pocket &
they have the means to pry every last penny from us, the lowly folk.
Anyway, they can’t take away my zest for life..
We may not be the only ones’ discouraged, Take Jon et al, they have
tried their best over an extended period of time to enhance our bank
accounts, but the market hasn’t responded. They have been truthful,
always with posters in mind, but it wasn’t meant to be, so hopefully
there will come a day, when we together, will reach the end of that
rainbow. Enough writing for today. Talk to you in writing later….
Comment by Bert — October 31, 2014 @ 10:35 am
Bert…. your zest is to be applauded… our daughter who has CF had a good checkup today… so believe me I know.. perspective is everything..
but most dont have it… sometimes you need an odd curve to present an agenda…:)
Comment by Jeremy — October 31, 2014 @ 1:18 pm
Jeremy
Everything has to be put in perspective, even i, a complete stranger,
can ponder as i type, that we had a couple of terrible days in the market,
but you know what, the good news is, my cyber friend Jeremy, his daughter
received a good report today…I quoted a line a couple of days ago & i will
quote it again, it is very fitting in light of the miracle you witnessed today,
“there’s a father up above, looking down at tender love”.
Comment by Bert — October 31, 2014 @ 3:44 pm
glad to get this month of October over with! Let’s see what November can bring with the ‘extra’ money from the Dow to ‘eventually’ flow to the TSX Venture?!
Comment by STEVEN1 — October 31, 2014 @ 8:53 pm
Are there any more exerts of interviews with Steve Regoci regarding GGI’s plans for the near future?
Comment by Tom UK — November 1, 2014 @ 8:39 am
Yes, Tom.
Comment by Jon -BMR — November 1, 2014 @ 8:41 am
Thx Bert – as always…. perspective:)
Comment by Jeremy — November 1, 2014 @ 12:53 pm
Morning guys, I tried warning some of you about BLO a few weeks back, it has 5 cent
PP paper coming free.
The TSXV is weak as with gold. I personally am cashing up, selling whatever I own with a
Bid on it! This will get worse before it gets better. Having cash for DEC is so important, Dec
Will bring lots of tax loss selling this year (as everyone is down). Being ready with cash to buy
Around dec 15th ish is a solid move. Cheers!
Comment by Anonymous001 — November 2, 2014 @ 5:16 am
Anonymous001
We have to agree to disagree. Because the Ventures is close to
levels witnessed in 2008, the argument can be made that so far
this year, there was more selling down than buying up, so the
questions remains, couldn’t the losses already realized from
past year’s selling be sufficient for income tax purposes &
during the next couple of months, try to take advantage of the
bargain prices out there, which i suggest is what will happen.
It’s only conjecture on my part, but i am willing to bet that
this is what will happen. The only problem being, if you win,
who do i make the cheque out to, anonymous ? (joking)
Comment by Bert — November 2, 2014 @ 7:20 am