BullMarketRun.com

Gold is at it again this morning, dropping below the pyschologically important $1,100 mark to $1,098 (down $14) as of 8:55 am Pacific time…it is off its low of the day which was $1,087…gold’s unexpected reversal the last couple of days is unsettling and suggests to us that we could see a washout to the $1,025 area in tandem with a rise in the U.S dollar above its 200-day moving average…technically, the best thing that could happen right now is a sudden and violent reversal to the upside or a further sharp drop with panic selling…the CDNX has fallen through minor support at last week’s low of 1,573 (currently at 1,554, off 37 points)…the Venture is now right at its 20-day moving average, which has proven to be a strong support area, and if that is breached then we need to be prepared for a drop to the 50-day moving average around 1,475…that would represent an almost 10% correction, the largest correction we’ve seen with the Venture since July of last year…our target of 1,950 to 2,300 on the Venture remains intact as this is merely a pullback within an ongoing and powerful bull market…we have emphasized on this site the importance of maintaining liquidity and cash at all times for unexpected situations just like this…corrections are great profit opportunities and you want to be buying into them, not selling into them…the TSX Gold Index, already in oversold territory, is now at 320…the next strong area of support is 310 followed by 290-295…the BullMarketRun portfolio is holding up well this morning and we see so no reason to sell any of these stocks…some minor weakness could occur in any of them which should be regarded as buying opportunities…the most vulnerable stock in our portfolio is Richfield Ventures (RVC, TSX-V) due to the cheap private placement stock that is now free trading…we are looking for a tremendous buying opportunity around 90 cents on Richfield which is trading this morning at $1.10…