BullMarketRun.com

Gold has traded in a range of $1,490 to $1,506 so far today…as of 8:25 am Pacific, the yellow metal is down $3 an ounce at $1,499…Silver is off 44 cents at $33.88…crude oil is down another 51 cents at $90.65 while the U.S. Dollar Index is off one-third of a point at 75.37…the market will be paying close attention to events in Greece this week but you know the U.S. is in rough shape when the L.A. Dodgers have to file for bankruptcy protection which they have done in a Delaware court this morning…perhaps the entire state of California is next…the CDNX appears to want to test last week’s low of 1882…it’s currently off 19 points at 1886…as our Saturday article detailed, one cannot rule out the possibility of a drop below 1800 in the CDNX which is what this market may have to do to finally bottom out…having said that, now is definitely the time in our view to be accumulating quality juniors – the CDNX could turnaround very suddenly – as the second half of the year looks a lot more promising after a very normal major correction during the first half…the long-term bull market remains completely intact…Gold has suffered some technical damage and a drop to as low as $1,425 (worst case scenario) can’t be ruled out as John’s chart outlines…however, physical buying in the Gold market, particularly from emerging economies, remains very robust and that has always supported prices when the short-term technical outlook has deteriorated…Gold‘s primary trend remains highly bullish…

From one form of stimulus to another…QE2 ends this week but the White House has come up with its own version of QE3 in the form of lower oil prices…the decision by the International Energy Agency (IEA) and the U.S. Department of Energy (DOE) to release oil from strategic reserves around the globe was  not about an oil emergency but rather a deliberate attempt to force crude prices lower in order to stimulate economic growth in the United States and elsewhere…more intervention from the IEA and the DOR should be expected…it’s estimated that a drop in oil prices into the $80′s could be worth as much as an extra half point for GDP growth in the United States over the second half of the year…oil is already down 20% from its April 29 peak…since oil is such a major component of the cost structure for producers, lower crude prices are welcome news for them as long as Gold holds up reasonably well which it should…a dark shadow has been cast over mining and exploration in Peru which is the world’s largest Silver producer…due to politically motivated protests from a bunch of backward thinking neanderthals, the Peruvian government has pulled the licence on Bear Creek Mining’s (BCM, TSX-V) Santa Ana mine and halted all new concessions in the Puno province of southeastern Peru for three years…BCU of course is getting hammered this morning, down $1.22 at $3.94 after trading at an all-time high of $12 in early March…the company is now threatening legal action…this only goes to show how critical it is to invest in companies in “safe” jurisdictions, but history has shown that even parts of Canada are sometimes very risky (what the NDP did to mining in British Columbia years ago is a classic example)…it’s not so much commodity prices but fringe groups and government actions that threaten our investments in the mining sector…Bayfield Ventures (BYV, TSX-V) is flying this morning after cutting a major Gold and Silver intercept at its Burns Block Property in the Rainy River district of northwestern Ontario…hole #71 returned 79.50 metres grading 8.66 g/t Au (starting at a downhole depth of 15.5 metres) and included a bonanza zone grading 60.05 g/t Au over 11.20 metres…BYV gapped up to 82 cents and is currently up 24 cents at 83 cents…it has traded as high as $1.00 this morning…technically, the stock faces significant resistance in the 90 cent to $1.00 range but it does have the potential to run…it’ll be interesting to watch how it trades through the rest of today – one test will be to see if it can hold above its opening price…obviously the best time to get in on a stock is prior to when good results come out which is why we’re so excited about Adventure Gold (AGE, TSX-V) at the moment…the market hasn’t quite picked up yet on the exploration success AGE is enjoying at its Pascalis-Colombiere Gold Property near Val d’Or…a 5,000 metre Phase 2 program is now underway and we’re expecting more stellar results given the location and history of this property and what has been reported already by Adventure Gold…in addition, down the highway, Agnico-Eagle Mines (AEM, TSX) is well into a 4,000 metre drill program at the promising Dubuisson Property and some nice numbers could come from there…drills are turning on four of AGE’s properties at the moment…the stock is unchanged this morning on light volume at 54 cents…SilverQuest Resources (SQI, TSX-V) reported results from 22 holes this morning at the Davidson Property, the northern portion of New Gold Inc.’s (NGD, TSX) Blackwater Project that SQI holds a 25% interest in…about 40% of the holes delivered strong results, a decent average, and show a continuity of mineralization to both the northwest and northeast of the resource area…hole #162 was particularly impressive as it cut 318 metres grading 1.39 g/t Au…New Gold is drilling 20,000 metres at Davidson in an effort to expand resources…SQI is up on the news this morning, 3 pennies higher at $1.07…Seafield Resources (SFF, TSX-V) continues to shine…it’s up another 3 cents to 34 cents which puts it exactly at its 200-day moving average (SMA) where it will likely encounter major resistance…the stock is in overbought territory, so there is a risk of a pullback before it’s able to re-energize itself for a push to higher levels…