BullMarketRun.com

The markets have bounced back from earlier losses today…as of 8:45 am Pacific time gold is up $3.00 ounce at $1,096…it dropped as low as $1,080 this morning, just slightly above its December low…the CDNX fell through its 20-day moving average for the first time since December but is now on the march back up, currently off just seven points at 1,552 – just a few points below its 20-day MA…Kent Exploration (KEX, TSX-V), which Clive Maund successfully knocked down with his “take profits” recommendation, nearly hit its 100-day moving average this morning when it traded as low as .165…clearly, Kent is an aggressive buy at these levels…we believe there are two scenarios for gold…either we will bottom out around current levels with a successful re-test of the December lows, or gold will drop further to just above the $1,000 level where there is huge support and where a major new upleg could begin…the idea of a major market crash (all markets), which Clive is sounding the alarms on this morning, seems unlikely to us at this point – it’s simply the wrong time of the year for an event like that, and the action in the CDNX contradicts, in our view, the imminent all-market crash theory…a correction in the CDNX to 1,475 (the 50-day MA) or even 1,400 (the 100-day MA) is certainly within the realm of possibility but that would merely be a 10 to 15 per cent correction within the context of a continuing bull market, given the fact the major moving averages would still remain firmly in bullish alignment…it’s also quite possible we may have hit bottom in the current correction this morning…the action we’re seeing right now does look strikingly similar to what we witnessed back in October…we suggest investors do some due diligence on Stans Energy Corp (RUU, TSX-V) which we first started research on at the end of December when it announced it had picked up a substantial REE deposit in Kyrgyzstan…RUU is trading at 35 cents this morning…