BullMarketRun.com

Gold continues to look strong…as of 8:35 am Pacific, the yellow metal is up $8 an ounce at $1,525…there is solid technical resistance just below $1,530 (Gold got as high as $1,529 so far this morning), so a decisive move through that area would certainly be another bullish development…Silver has gained $1.14 to $36.21…after a rough day yesterday, crude oil is up $2.12 to $99.82…the U.S. Dollar Index is weaker today, off nearly half a point to 75.86…U.S. and Asian markets were sharply lower yesterday on worries over euro zone debt troubles and signs of a slowing economy in Europe and Asia…Canadian markets were closed due to the Victoria Day holiday and have re-opened on the flat side this morning…we’re keeping a close eye on the TSX Venture Exchange which, as we explained in a couple of articles over the weekend, could be in the early stages of a major reversal but confirmation is required…from the March 7 high of 2465 to the May 17 low of 1957, a total of 51 trading sessions, the CDNX fell 20.6% which is certainly in line with historical corrections…that drop (“Wave 4”) was a 38.2% Fibonacci retracement of Wave 3, the same as Wave 2 was of Wave 1…this sets up a powerful potential Wave 5 scenario which would catch some investors by surprise…there are other technical arguments in favor of a reversal which were outlined in both articles over the weekend…as well, and very interestingly, the March-May correction in the CDNX was almost identical in terms of duration and depth to the 2005 correction during the same period…the reversal in 2005 started in earnest after the Index first moved above its 10-day moving average (SMA)…the CDNX is currently up 1 point at 2032 which puts it slightly above its 10-day SMA for the first time this month but we need to be patient to see how this market closes over the next couple of days at least… there is also encouragement with regard to the CRB Index which has retraced 50% of its run-up from November through March…John’s updated CRB chart shows this important Index appears to have found strong support and could be ready to march higher…

Canaco Resources (CAN, TSX-V) came out with more impressive drill results from Magambazi in Tanzania this morning, adding strike to the recently discovered western lode…results included 17 metres grading 23.96 g/t Au…Canaco is showing renewed technical strength which is also a positive sign for the overall market (Canaco led this market higher last summer)…it’s currently up 29 cents at $4.13…Canaco fell as low as $3.25 last week…it’s one of those stocks that will help power the CDNX higher…Currie Rose Resources (CUI, TSX-V) will soon be drilling its very promising Sekenke Project in the prolific Lake Victoria Greenstone Belt of northwest Tanzania…a turnaround in CUI’s 50-day moving average (SMA) appears to be close at hand and that could be the trigger for a breakout in conjunction with the launch of its Phase 1 spring drill program which is expected to include 5,000 metres at Sekenke…CUI is up half a penny at 17 cents on light volume so far today…Visible Gold Mines (VGD, TSX-V) has declined for seven straight weeks for no fundamental reason – it has simply drifted lower due to overall market weakness and should be poised for a rebound…the company is cash-rich and exploring aggressively in the Rouyn-Noranda region of northwestern Quebec…we’re particularly looking forward to the start of drilling at VGD’s Joutel Property which is a joint venture with Agnico-Eagle Mines (AEM, TSX)…VGD is the operator…Joutel is a significant former producer of Gold and Silver – in fact, this property gave birth to Agnico-Eagle some 40 years ago…we view Joutel as another “Granada” scenario – a former producer with a great story and plenty of untapped geological potential…VGD is up a penny at 27 cents…Seafield Resources (SFF, TSX-V) is powering higher today on strong volume…it’s currently up 4.5 cents at 25.5 cents…with new management at the helm, we’re expecting good things from Seafield as our faith in its Quinchia land package in Colombia has never wavered over the last year-and-a-half…Gold Canyon Resources (GCU, TSX-V) has the potential to rocket much higher if indeed there’s a major reversal in the CDNX…GCU continues to drill its very promising Springpole Project in Ontario which Fraser Mackenzie’s mining analyst states likely contains at least 5.5 million ounces…GCU, which recently completed a $10 million financing, is currently a penny higher at $3.18…