Gold is strong today as it closes in on its recent all-time high of $1,446……as of 8:00 am Pacific, the yellow metal is up $12 an ounce at $1,441…Silver has eclipsed its recent high and is up 47 cents at the moment to $36.85…crude oil is 46 cents higher, trading at $105.43, while the U.S. Dollar Index is ahead slightly at $75.71…international tensions continue to ratchet up…the first bus bombing in several years in Jerusalem this morning comes amid rising tensions between Hamas and Israel…the European sovereign debt issue is coming back into the spotlight again with an important austerity measure vote in Portugal today…chances are the government will fall and debt-ridden Portugal will require a bailout…new U.S. single-family home sales unexpectedly fell in February to hit a record low and prices were the lowest since December 2003, a government report showed this morning…the Commerce Department said sales dropped 16.9% to a seasonally adjusted 250,000 unit annual rate, the lowest since records began in 1963…economists polled by Reuters had forecast new home sales edging up to a 290,000-unit pace last month from a previously reported 284,000 unit rate…the CDNX is up 7 points to 2304….the lack of volume in the CDNX rally since the intra-day low of 2054 March 15 is a very bearish short-term sign…sustained price moves to the upside require volume which just isn’t there with the CDNX at the moment…volume is one of the most important technical indicators of all and many investors often fail to recognize that…the CDNX is also under-performing vs. Gold which also has us very concerned…Everton Resources (EVR, TSX-V), a company we’ve been tracking closely over the last several months, has started a deep drilling program at its APV Property in the Dominican Republic, immediately adjacent to the Barrick-Goldcorp massive Pueblo Viejo Gold deposit…Everton’s geologists believe the Pueblo-Viejo deposit runs onto and through its property…this is the first time deep diamond drilling has been conducted in the DR and in the process Everton will be testing the silica lithocap theory…this is certainly a situation to watch closely and we hope to interview EVR President and CEO Andre Audet again in the near future…EVR has firmed up this morning on the news and is currently trading at 33.5 cents, a gain of 3 pennies for the day on volume of 286,000 shares…of course another company we’re very bullish on in the DR is GoldQuest Mining (GQC, TSX-V)…like many stocks, GQC has been suffering from some technical weakness lately with a declining 50-day moving average (SMA) among other things..GoldQuest is underpinned however by strong fundamental value with an impressive pipeline of projects including three properties with 43-101 resources…drilling continues at GQC’s flagship Escandalosa Property in the DR with initial results expected soon as the drill program started three months ago…GoldQuest is in a healthy cash position and plans to drill two additional properties in the DR (Las Animas and Jengibre) after completing approximately 40 holes at Escandalosa…GQC hasn’t traded yet today after closing yesterday at 34.5 cents…Abcourt Mines (ABI, TSX-V) is unchanged at 19 cents..we spoke with President and CEO Renaud Hinse a few days ago and Hinse remains very optimistic regarding his company’s drill programs at Elder-Tagami and Abcourt-Barvue…in our view there’s no question the full value of these properties (both have 43-101 resources in addition to substantial exploration potential) is not reflected in the ABI share price with Abcourt’s market cap sitting at just $20 million…the company has one of the best silver assets in the country (Abcourt-Barvue) and a growing Gold deposit at Elder-Tagami with considerable upside potential…we suspect Hinse is considering strategies to unlock the value of Abcourt’s assets…given that we’re expecting more weakness in the CDNX, we’re in the process of assembling a list of stocks for our readers’ due diligence that we believe could emerge very powerfully out of any major correction…
March 23, 2011
14 Comments
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Hi Jon,
Have you heard of any progress with the geophysics and/or drilling on the CQX claims? Looking forward to the second part of the Vic Erickson interview.
Comment by Wayne — March 23, 2011 @ 8:25 am
The markets are very interesting today. This is where things become confusing. CDNX – low volumes, but breaking above key resistance levels. Do you buy or sell into this? I realize that volume is a key component to market direction, but could it be that the market is head faking us with low volume with the intentions of going higher? Technically, that makes no sense, but the market typically goes in the opposite direction to where most people think it might go.
Juicy!! Is all I can say.
Comment by Andrew M — March 23, 2011 @ 11:14 am
Guys and Gals.. volume today is better than in the last 3 weeks or so…. 300 mil + by 3PM is golden… so far… I bet that most (including me) were waiting for a pull back in the silver, gold, and oil $$$… aint happening right now… gumshoe opinion!!:)
Comment by Jeremy — March 23, 2011 @ 11:29 am
Jeremy – Not sure where you got your volume from, but I don’t see that.
Comment by Andrew M — March 23, 2011 @ 11:50 am
Don’t forget alot of these stocks trade on the other Alpha tradings systems,etc so, volumes are actually higher for each individual stock! Venture looks good, I just hope Jon is wrong although I truly respect Jon for his insights.
Comment by STEVE — March 23, 2011 @ 11:52 am
I’m guessing Jeremy combined the volumes on TSX and the Venture?
Comment by Andrew — March 23, 2011 @ 11:55 am
Bye, bye 2300.. Up again today, with an increase in volume over yesterday. I am reluctant to become
over confident just yet, because all things are possible, but i feel just fine this evening. One day
at a time. R !
Comment by Bert — March 23, 2011 @ 12:09 pm
hey all… my bad.. guess the volume was only 30 mil better than the last 7-8 sessions … admittingly, I have no idea what I was looking at!!:) drugs I did as a kid I guess:)
really tho… just better volume:) and we made it over the 50 day and the 21 day MA… TSX reports 350 mil shares traded…
Comment by Jeremy — March 23, 2011 @ 1:25 pm
TA is not my thing but it looks like MACD on the CDNX is about to cross any day now. And also the volume was higher today, combined with higher gold and silver at ath. Let’s hope things look clearer before the week is over.
Comment by J.C. — March 23, 2011 @ 1:26 pm
J.C., I remain cautious but we’re seeing some very interesting activity with the CDNX and the TSX Gold Index…….still at a critical resistance area with the CDNX, and volume still needs to improve, but things have to be watched closely here…….the next couple of days are very important….it is possible the bulls could overcome the bears…..patience required, though……..a lot of conflicting signals……
Comment by Jon - BMR — March 23, 2011 @ 1:39 pm
What will tomorrow bring ?
No doubt, the US dollar will be up & as a result, gold may be down. Why ? you may ask.
The Portugal Prime Minister has resigned after austerity vote failure. Is there any
good news out there ? well ! i made $67.60 on a trade today & that’s better than a loss.
Respectfully !
Comment by Bert — March 23, 2011 @ 3:34 pm
Jon, I hear you. I’m laying with ~45% cash right now, first time not fully invested this year. And it’s not a pleasant feeling when the stocks in my portfolio jumps 5-10% a day last couple of sessions. But I remember the feeling in jan-feb. when most stocks plunged and I had no cash to buy for at those prices. Almost hoping for a correction now, lol, almost..
Comment by J.C. — March 23, 2011 @ 7:11 pm
J.C. My feelings exactly, I went to about 30-35% cash and it is really hard to be patient and wait for a pullback when you see things going up.
Comment by GREG H — March 23, 2011 @ 9:03 pm
Looks like another strong market today. Momentum indicators are indicating a positive crossover in our midst. Gold and silver are reaching new highs. I am concerned with silver in the short term cause it is trading well above its 50 day and 200 day average. As much as I like seeing the markets go up, i’m also looking forward to seeing a buying opp at lower prices. I still have my feet in the water but I have a reserve handy if I need it.
Comment by Seamus — March 24, 2011 @ 2:44 am