Gold is showing renewed vigor this morning, climbing as high as $1,205…as of 8:30 am Pacific, bullion is up $22 an ounce at $1,202…the $1,200 level is new resistance – we’ll see if it can decisively overcome that level this week…Silver, after falling 4 straight weeks, has surged 66 cents to $16.41…Copper is up 3 pennies at $2.76…Crude Oil has retreated 13 cents to $57.02 while the U.S. Dollar Index, continuing to show technical weakness, is off one-fifth of a point at 96.71…
The Fed will kick off a 2-day policy meeting tomorrow, with investors watching for comments Wednesday on the strength of the economy and the timing of potential monetary tightening…a dovish Fed Statement would likely give Gold a chance to gain traction above $1,200 as the month draws to a close…on the other hand, optimistic signals from the Fed would support the greenback and possibly put fresh downward pressure on the metal…
Nickel is rallying the most among the 6 main metals today, reaching a 1-month high above $6 a pound as workers staged a strike at a BHP Billiton Ltd. mine in Colombia…
Oil Update
How sustainable the rally in Oil prices will be in light of continued oversupply concerns remains to be seen…along with Saudi Arabia and others, Russia is now believed to be increasing production as well…meanwhile, Norway is also pushing to approve a $15 billion project in the North Sea that could be profitable even with Oil at $32 a barrel…while U.S. production has started to ease, it still remains high and companies are finding new ways to cut costs…
It’s worth noting that exchange-traded funds that invest in U.S. Oil futures, including the $3.1 billion United States Oil Fund LP, have registered about $2.7 billion of investor outflows this month, according to investment bank Macquarie…that reverses an inflow that started in January as Oil prices tumbled…these ETF’s took in roughly $6 billion this year through mid-March when WTIC hit a 6-year low, according to Macquarie…traders and analysts are closely watching weekly production and demand data for signs that the global glut of Crude Oil may start to shrink…they’re also watching the ETF trends closely as Crude prices are certainly vulnerable to a pullback following a more than 30% run-up since March 17…
Today’s Equity Markets
Asia
Retail money is obviously moving massively back into stocks in China as investors seem to have nowhere to go with yields going down from deposits to wealth management products, while the property market is not rebounding…the Shanghai Composite soared another 3% overnight, climbing 134 points to close at a new 7-year high of 4528…
Japan’s Nikkei closed down 37 points at 19983…
Europe
European markets were strong today to begin the new trading week…
North America
The Dow has added 55 points as of 8:30 am Pacific…the Nasdaq is up for the 6th straight day to a fresh all-time high, while the S&P 500 has also hit another record high this morning…
In addition to Wednesday afternoon’s Fed policy announcement, there are some important economic reports this week such as 1st quarter GDP Wednesday morning followed by Thursday’s personal consumption expenditures data that includes an inflation measure…there are also dozens of earnings starting with Apple later today and some of the biggest names in the Oil patch later in the week including IBP, ExxonMobil and Chevron…
An interesting statistic…if it were a country, the Great Lakes-St. Lawrence region of North America would be ranked as the 3rd-largest economy in the world according to a study released today by BMO Capital Markets…as it is, this one area sitting in the northeastern portions of Canada and the United States accounts for 30% of the combined economies of both countries, and 31% of all employment, equivalent to 51 million jobs…the impact of that massive footprint is set to get even bigger, as manufacturers and exporters in Ontario and Quebec take advantage of a weak Canadian currency and stronger U.S. demand…
In Toronto, the TSX is down 16 points as of 8:30 am Pacific with the Gold Index rallying but up against resistance again at 166…the Venture is off slightly at 696…trading in GoldQuest Mining (GQC, TSX-V) has been interesting since Friday with the stock doubling in price on no news and strong volume…more results are pending from the company’s 5,000 m drill program at its 100%-owned, 50 km long Tireo Project in the DR which includes the Romero Gold-Copper deposits…GQC climbed as high as 17 cents this morning and is up 2.5 cents at 15.5 cents as of 8:30 am Pacific…
Venture 3-Year Weekly Chart Update
The Venture’s RSI(14) on this 3-year weekly chart, after reaching into deeply oversold conditions at the end of last year, continues to follow a very gradual uptrend in a fashion similar to the recovery that began in the spring of 2013…the downside risk in this market over the coming months has therefore greatly diminished, which is important, while it’s likely just a matter of time before resistance is overcome at 707…the next wall after that will be around 750…
A cluster of Fib. support between 654 and 680, shown in yesterday’s short-term chart, has held since the beginning of the year, and so has the 680 level on a monthly close basis since the mid-December post-Crash low of 637…
Cannabix Technologies Inc. (BLO, CSE, BLOZF, OTC) Update
Cannabix Technologies (BLO, CSE) announced a high-profile addition this morning to its team of advisers as the company continues to develop relationships with law enforcement agencies, employers and other industry stakeholders…Rocco Iannapollo will advise Cannabix on global substance abuse programs in a range of industries…he’s a member of the Substance Abuse Program Administrators Association, the Drug and Alcohol Testing Industry Association, as well as a speaker and regular contributor to the International Forum for Drug and Alcohol Testing…Iannapollo also has more than 20 years’ experience working for Fortune 50 companies in the Oil and gas industry…
Ascot Resources Ltd. (AOT, TSX-V) Update
With the Sheslay district as well as other exploration hotspots, northwest British Columbia will be a strong focus of investor attention over the next several months…all the more reason to pay attention now to Ascot Resources (AOT, TSX-V) before it may explode to the upside again like it did last August…
A week ago, Ascot announced the start of its 2015 drill program at its high-grade Premier Property near Stewart…this property covers more than 100 sq. km and includes the old Premier mine, a past producer of 2.1 million ounces of Gold and 45 million ounces of Silver…
This year’s drilling will be concentrated in the Premier main zone and Premier west zone areas, following up on the successful 2014 drilling campaign that returned many multi-ounce Gold intercepts, the most spectacular of which was 14,394.5 g/t Au over 0.75 of a meter…
Technically, Ascot has been trading in a bullish downsloping flag since late last year with strong support so far in 2015 around $1.40 which also represents the rising 300-day SMA (not shown on this 2+ year weekly chart)…a breakout above both the flag and Fib. resistance at $1.79 would be very significant…
AOT is up 3 pennies at $1.52 as of 8:30 am Pacific…
Tinka Resources (TK, TSX-V) Update
Tinka Resources (TK, TSX-V) has continued to edge higher since our last update nearly 2 weeks ago…Zinc is one of the most promising metals for 2015 given bullish supply-demand dynamics, which is just one reason we like this particular play for the potential of a strong speculative rebound as the year progresses…on April 13, the company announced that it has arranged a financing up to $7 million at 21.5 cents per unit…
International Finance Corp. (IFC), a member of the World Bank Group, is expected to subscribe for nearly two-thirds of that private placement…upon closing, IFC will become an insider of the company holding approximately 14.1% of Tinka on an undiluted basis…
As you can see on this 1.5-year weekly chart, TK broke out above a downtrend line late last year…support is very strong at 18 cents with Fib. resistance at 26 cents…
TK is unchanged at 25 cents as of 8:30 am Pacific…
Fission 3.0 Corp. (FUU, TSX-V) Update
Fission 3.0 (FUU, TSX-V) is armed with $5 million in cash and a strategic portfolio of uranium properties in the Athabasca Basin upon which to build shareholder value in the coming months…
What we also really like at the moment with regard to Fission 3.0 is the bullish technical posture of the stock which includes increasing buy pressure (CMF), an RSI(14) “W” formation, and a breakout in February above a downtrend line that was later successfully tested as new support…excellent potential here over the next few months…
FUU is unchanged at 11.5 cents as of 8:30 am Pacific…
Note: John and Jon both hold share positions in BLO.
Nothing from GGI on Rodadero for over a month, NADA, Ziltch. Nothing on it’s plans for the Grizzly. Nothing, Nada, Ziltch. Very frustrating but yes I am still waiting and hoping……….
Comment by Dan — April 27, 2015 @ 7:48 am
Dan – I would not worry about GGI. Its times like this when they explode on news. My eyes are watching. On some others:
NSP – halted
MZI – broke the support, hoping for .14
VID – hoping for .27
NPH – I think it was Sam who bought in. HOLD THOSE SHARES. Add on weakness.
Comment by dave — April 27, 2015 @ 8:24 am
One more comment before I go away for the day. I believe it was RBW that was mentioned when referenced to GGI in the past. They are not even in the same orbit. The previous drills from GGI have proven this. I don’t own GGI at the moment, but I will soon.
Comment by dave — April 27, 2015 @ 8:29 am
John … whats your take on the BLO decline… tis a 50% fib level yes?? (77 to 38) … make some sense it consolidates here?? or as I suspect will continue to decline due to impatient retail ‘I own 1000 shares’ investors..??
Comment by Jeremy — April 27, 2015 @ 10:35 am
Eric Coffin put out a special report on GQC just a few days ago. He expects a new improved PEA any day now and thinks $25-$50 per once is fair price plus they might find new gold.
Comment by Ivan Borzinsky — April 27, 2015 @ 10:37 am
Jon, have you spoke to Steve Regoci lately? The silence is very concerning.
Comment by Dan — April 27, 2015 @ 11:04 am
Dan, silence is sometimes golden. There aren’t many companies in the market today that are actively advancing 3 exceptional properties, so in my last conversation with Steve last week he indicated he and his team were involved in many meetings to finalize parts of the Grizzly campaign plus of course managing what’s going on in Mexico including a new drill program at La Patilla. Don’t confuse the market activity with lack of progress on the ground. GGI will rock at the right time and I look at the current situation as a time to accumulate, not a time to panic. You make the most money on good stocks with strong fundamentals when you buy them during periods of weakness, just like with Doubleview recently.
Comment by Jon - BMR — April 27, 2015 @ 12:39 pm
O’boy what is happening with GBB? Down to 3c with 1.2m shares traded. Mr Basa is trying to change the name of common shares to royalty shares with a NSR attached to it. Waiting for approval from stock exchange …
Comment by Stefan — April 27, 2015 @ 1:06 pm
Jon, I have been picking up a few GGI shares at 13 cents but I have enough now. I want Regoci to release the hounds!
Comment by Dan — April 27, 2015 @ 1:43 pm
Hi Jeremy
If you look at the chart, in $US, it closed today right on the 38.2% level at 31c. After trying to breakout we have seen 6 straight down sessions. This Pennant pattern is quite unusual in that Pennants usually last no longer than 3-4 weeks. This started on Feb 9 and lasted right to its apex.
Most patterns of this kind have a B/O to the upside (a Pennant is a continuation pattern)about 3/4 of the distance to the apex or after 3-4 weeks it will develop into Down sloping Flag which is also a bullish pattern.
We have not seen any sign of a selloff and it is the end of the month. At the moment there is no serious sign of weakness. I expect we will see some strength come into the market in May.
Hope this helps.
Comment by John BMR — April 27, 2015 @ 4:38 pm
Thx John … not sure if it does as such… maybe as simple as people losing patience.. the mcdonalds factor:) I want it now!!:) lets hope the shares are moving to less weak hands:)
Comment by Jeremy — April 28, 2015 @ 5:12 am
Hey John .. I meant the above in a good way in that the patterns are unusual… and I got from your explanation is that it is normal trading … and nothing nefarious:)
Comment by Jeremy — April 28, 2015 @ 5:13 am
Jon – I have an off the wall question for you. I have never seen this in my 25 years of investing. You may or may not know the answer. What does it mean if a company exercises their warrants and the exchange extends the closing of the warrants due to a material event?????
Comment by dave — April 28, 2015 @ 5:17 am
Dave, are u talking about a company with its own warrants to exercise on another stock, or a company’s regular shareholder warrants on its own stock that they are hoping to have fully exercised?
Comment by Jon - BMR — April 28, 2015 @ 5:26 am
DBV News Release today…
Doubleview Capital Corp. has granted 1.2 million stock options to its directors, officers, key geological advisers and consultants of Doubleview. The options were granted for a period of five years, expiring on April 27, 2020, and each stock option will allow the holder to purchase a common share of Doubleview at an exercise price of 17 cents.
Comment by Steve A — April 28, 2015 @ 5:39 am
JOhn – nother reason for the comments is that this decline started with qtrade… notice today that the seller hit the bid… my understanding of qtrade is that it is an online brokerage so some retail person is just dumping at the bid… which of course has nothing to do with fundamentals or technicals…
Just sayin!!
Comment by Jeremy — April 28, 2015 @ 6:03 am
The latter, a companies own stock.
Comment by dave — April 28, 2015 @ 6:13 am
Jon, also thats a big buy just came in on GGI
Comment by dave — April 28, 2015 @ 6:42 am
Can BMR give me any expert feedback on Eagle Hill’s PEA that has just been announced. The deposit is high grade (more than 8g/t) and the LOM is nearly 8 years. LOM total cash cost plus sustaining capital is $623 (Canadian). Post tax IRR is 23% and pay back is 3.9 years. Is this a good investment in today’s market? Current market cap is around $11mil.
http://web.tmxmoney.com/article.php?newsid=75051372&qm_symbol=EAG
Comment by Tom UK — April 28, 2015 @ 7:55 am