BullMarketRun.com

Gold has traded in a range of $1,341 to $1,354 so far today…as of 11:30 am Pacific, the yellow metal is up $5 an ounce at $1,347…Silver has declined 11 cents to $27.46 while the greenback remains under some pressure…the U.S. Dollar Index has slipped another one-quarter of a point to 77.92…we believe the evidence supports a major reversal for Gold very soon…this possibly could be preceded by another dip and if that should occur, it would be a final “shakeout” prior to another major move to the upside…several indicators are telling us that Gold is almost ready to take off again…the action in the CDNX…the chart of the TSX Gold Index as outlined in our Week In Review (Part 1) Saturday as well as John’s recent “Big Golden Picture” chart…and the latest COT report (commerical traders) for Gold which shows the commercial traders have sharply scaled back their short positions…the commercial traders are hardly ever wrong…the fact they have reduced their short positions so sharply, to levels not seen since last July, is the final piece of evidence we need to see that Gold is about to head north…do not allow yourself to get fooled by a potential near-term final spike to the downside…February is likely to be a very different story for precious metals based on the above, so keep that in mind…this is a very bullish-looking set-up…physical demand continues to be strong and this we believe will help put a floor on Gold…lots of news coming out of the U.S. this week…Obama delivers his State of the Union address tomorrow night and is expected to focus on jobs and the economy…at some point in the future, a State of the Union address will focus on the crisis of debt in America and the urgent need to reduce it…this issue hasn’t quite crystallized yet in the United States…dozens of earnings reports are due this week as well as a slew of U.S. macroeconomic data and a FOMC statement as well…the CDNX is essentially unchanged at 2266…Gold Bullion Development (GBB, TSX-V) is off 1 penny at 74 cents…the chart for GBB is showing bullish new signs as John outlined this morning…Cadillac Mining (CQX, TSX-V) is on the rebound after hitting a low of 26 cents Friday…it got as high as 34.5 cents this morning but has since dropped back to 31 cents…we’re expecting news very soon out of Richmont Mines (RIC, TSX) regarding its Wasamac Property…the principal structure hosting Gold mineralization at Wasamac plunges to the north onto ground held by Cadillac…we’re expecting a sharp increase in the Wasamac resource calculation based on results and the amount of drilling since last May…Wasamac could very easily become Richmont’s #1 producing mine…Cadillac has a 100% interest in its 7 “Wasa” claims which are largely untested for Gold and base metal potential…Cadillac also holds more than 75 square kilometres of additional ground along the Cadillac Trend in partnership with Visible Gold (VGD, TSX-V) which is planning a very aggressive exploration program…Cadillac’s recent acquisition of an entire former mining camp in Utah (Goldstrike) near the Nevada border was an astute move that we firmly believe will drive this company forward in a huge way in 2011…Troymet Exploration (TYE, TSX-V) came out with news this morning as the company is mobilizing drills to its Key and McClarty Lake projects…Troymet is worth watching closely and performing due diligence on…Everton Resources (EVR, TSX-V) should be coming out with more results in the near future from drilling in the Dominican Republic…Everton has recently been trading between its 100 (30 cents) and 50-day (34 cents) moving averages (SMA)…in a situation like this, a convincing move on strong volume through the 50-day would be extremely bullish while a breakdown below the 100-day of course would be bearish…we’re counting on an upside move…we love the fundamentals of Everton and we believe its DR properties could generate explosive results…the same applies of course for GoldQuest Mining (GQC, TSX-V) which is developing a terrific pipeline of advanced and early stage projects in the mineralization-rich DR…GQC is off a penny at 36 cents…Kent Exploration (KEX, TSX-V) continues to be a brisk trader…the stock, which we were urging our readers to take a look at a couple weeks ago when it was sitting at 13 cents, is up another 2 pennies to 18 cents this morning…Kent has overcome resistance at 16.5 cents where new support should now exist…the date of record for the Archean Resources spin-off is this coming Friday…one Archean share for four Kent shares…we’ve made some adjustments to our model portfolio, taking out Excel Gold Mining (EGM, TSX-V) and Colombian Mines (CMJ, TSX-V)…we still very much like the potential for both, although they’ve been weak performers lately, and we’ll continue reporting on them but we wanted to make room for two new companies (still under consideration) without overloading the model portfolio…