Gold hit another record high this morning but has since gone into retreat…as of 8:10 am Pacific, the yellow metal is down $3 an ounce at $1,617 after climbing as high as $1,630…Silver hit nearly $41.50 but is now off 9 cents at $40.82…Copper is down 2 cents at $4.33, Crude Oil has declined an even $2 a barrel to $97.59 while the U.S. Dollar is up half a point to 74.08…analysts at Barclays Capital expect the United States to lose its “AAA” credit rating as a compromise plan is passed by Congress that leads S&P to cut its rating on U.S. debt (assuming Congress does work out a compromise plan which we believe it will)…the broad stock markets may shrug off a downgrade, however, as occurred in Japan in 1998 when its debt was lowered following the collapse of Long Term Capital Management (LTCM)…corporate earnings and the economic outlook for the balance of the year will be the key drivers for the Dow and the market as a whole…as we’ve argued here repeatedly recently, that outlook is actually quite encouraging and two leading indicators – the CDNX and Copper – are confirming that, although the Venture is weak for the third straight day…as of 8:10 am Pacific, the CDNX is off 24 points at 1999 but this should be viewed as a normal pullback within an ongoing new uptrend…the 20-day moving average (SMA) is currently at 1980…Visible Gold Mines (VGD, TSX-V), one of our favorites going into August based on fundamentals as well as technicals, has touched its 10-day moving average and a support area at 32 cents this morning as it’s off a penny-and-a-half…we’re expecting some fireworks out of VGD as it continues drilling its Lucky Break Project in the Wasamac area west of Rouyn-Noranda, and as drilling begins at its Joutel Project to the north…one of our favorite Yukon plays is heating up this morning…Golden Predator (GPD, TSX-V) is up 19 cents to $1.25 on nearly 3 million shares (CDNX) after releasing initial assay results (7 holes) from the Sleeman Zone discovery at its Brewery Creek Project…three of the 7 holes returned solid results…191.5 metres of 1.46 g/t Au beginning at a depth of 4.5 m in BC-11-226; 40.3 m of 1.21 g/t Au beginning at a depth of 13.2 m in BC-11-229; and 24 metres of 1.65 g/t Au from a depth of 62.5 metres in BC11-217…mineralization to date at the Sleeman Zone – the second significant discovery at Brewery Creek this year – has been drilled to a vertical depth of 150 metres from surface, extends horizontally well over 100 metres, and is open in both directions along strike and down dip…what’s also interesting is that the geochemical signature of the Gold bearing zone at Sleeman is distinctly elevated in lead, zinc and Silver which is different from other mineralized areas at Brewery Creek…GPD ran as high as $1.34 this morning, 4 cents below its all-time high…back on July 15, John highlighted Pacific Ridge Exploration (PEX, TSX-V), another Yukon play, when it was trading at 37 cents…yesterday, PEX climbed as high as 66 cents…it has backed off to 61 cents this morning, down 4 pennies for the day, and it’s a situation that should be watched closely as John’s updated chart reveals…
Pacific Ridge, which had $4.5 million in working capital at the end of March, is in the midst of a 4,000 metre drill program at its Mariposa Property in the White Gold District…the program is testing the Skookum Jim and Hackly zones, two of five gold-in-soils geochemical anomalies defined last year within the 262-square-kilometre property…we’ll be reviewing more Yukon plays tomorrow…this morning’s market weakness has dropped Adventure Gold (AGE, TSX-V) below 50 cents where it hasn’t traded since the beginning of June…it’s off half a penny at 49.5 cents, slightly below its rising 200-day moving average where the stock has found excellent support throughout the year…we’re very bullish on AGE’s Pascalis-Colombiere Gold Property near Val d’Or…it’s shaping up to be a potentially significant deposit given results to date…a 5,000 metre Phase 2 drill program continues and more results are expected next month…Currie Rose Resources (CUI, TSX-V) has backed off to its rising 50-day SMA at 18 cents…RSI(14) has also dropped to support at 50, so CUI is definitely in a “sweet spot” this morning after touching a two-month high of 21.5 cents yesterday…
Who would have ever thought that we could once again move below
2000, but we did & i don’t believe it was in the chart(s). I’m
only trying to make a point, that the turmoil we are going through
these days, in particular in the U.S., far outweighs the accuracy
of the moving averages, etc., when comparing yesteryears to today.
When things are normal or better than normal, we could throw away
the charts & pick up our darts. We listen to a chart reader, who
portrays a very positive feeling & we buy the stock, say at 0.50,
but often, negativity sets in & it slowly but surely moves down
to say 0.18. Our chart reader highlights each rising increment,we
are up .02 i read & we patiently wait for it to continue it’s move
up, thinking as it moves up,, if only we can get our money back,
but not always is that possible, because those who bought at 0.18
& on the way up, are usually selling before it reaches our buying
price & once again we continue waiting & hoping, waiting & hoping.
Anyway, i have made lots of money playing this gambling game & i
have lost lots of money & have come to the conclusion that selling
& taking any profit, is much more pleasurable than waiting & waiting
& waiting & eventually losing anyway. That’s my story, not exactly
as stated but something like that anyway.
I have once again mentioned gambling. This game gives us lots of
information, but the unknowns is what makes it a gamble.
R !
Bert
R !
Bert
Comment by Bert — July 27, 2011 @ 8:01 am
thats why you always buy low and sell high. I feel for you bert. right now only in ssh and got in low
Comment by david — July 27, 2011 @ 9:08 am
BER hit 12.5 cents today and my sixth sense is correct. I am thinking that this stock will have more adjustment for the next few days and then it will go back up to 20 cents level. Keep the cash for the time being and the cheap stocks are not really cheap these days. It is a gambling game but you do not have to play each time. Just sit there and watch other playes in the game. GBB and SD are still my favorite stocks from now to end of the year. You do not necessary to put all your money there…. I am keeping 1/3 of cash…
Comment by Theodore — July 27, 2011 @ 9:13 am
NKL had a great run up 30 or 40 percent a day I sold out on first sign of weakness at 5.25
now I am looking for the next nkl.MY biggest holdings are sol ws vgd. SHARE your stock picks
Comment by gil — July 27, 2011 @ 9:29 am
It looks like micro caps are continuing to slide in price. The ones with good news are popping the day of NR then those start slide in price as well. So good way to make profit is day trading but that is hard to do.
I continue to like the ones with proven resource and under valued (KSK, LVN, SFF, NKL, etc). But who knows how much share price will slide before rising.
Comment by Bruce — July 27, 2011 @ 10:14 am
David – thats why you always buy low and sell high. I feel for you bert. right now only in ssh and got in low
Bert – I am not looking for sympathy, i was just trying to make a point. For example, there are many watching
this & other sites, who bought high & are now waiting, waiting, waiting. I have losers, but i also had
many winners & overall, i am still up, but i thank you for your thoughts. I also believe in taking a
profit, when the opportunity becomes available & may i add, i have also watched stocks move up after taking
a profit, but i have come to realize, that i am far from being perfect at this game, but if at the end,
i can show a profit, i am happy. I sold VGD during the last little move up, but bought some back lower
today, because i do believe it is a good ””GAMBLE””. Good luck to you DAVID WITH ssh.
R !
Bert
Comment by Bert — July 27, 2011 @ 10:17 am
I personally like SSH, KSK, SFF, VGD and ABI. Good management with large undervalued resources. Right now I own stock in the above and will buy more once I get out of my option shorts on TZA, SQQQ, GLL, ZSL. Then load back up with long options calls in POT, SU, CNQ, TLM and LEG for a balanced portfolio in large and small caps. Followed by loading up on GBB, SFF, BKT, SVL, URA, HAO, ABN, ECC, CUI and SPA.
I’m watching APE, PPI, DNA, ROZ, VTR, FED, AZM, SGC, LEX, ADE, Z, CFM, NTR, BYV, RYG.
I have a basket of plays with similar upside potential in micro cap stocks to avoid being hammered in the event of poor results. I don’t like SD very much due to poor management and weak execution on their leases. They might have some gold potential in the ground but without good management and a drilling program the stock will never get market appreciation. Avoid SD and buy VGD or CQX instead. An example of poor management is also with CQX and look at that stocks performance. The only thing that they have going for them is VGD drilling on their Cadillac lease and potentially taking it over (let’s hope) so that their assets are executed with VGD’s team.
Good luck with your trades folks. The next few days are going to be roller coasters. Expect gold and silver to correct down to 1500 or so in the next two weeks. With a final push to the end of the year.
TA is good and we thank BMR for their analysis, but without looking at all the TA in the market you only see part of the picture. Its like looking through binoculars without your peripheral vision. You get side swipped without it.
Have a good long weekend.
Comment by Andrew M — July 27, 2011 @ 12:16 pm
Markets were down 2% yesterday. I don’t see this as normal or “healthy” pull backs. The drop in the CDNX this year has been ongoing since January. It seems to me that the wise and wealthy investor took their profits from the Venture at the end of 2010 and they haven’t returned. The “pullbacks” have all been tied in with a crisis of one kind or another. These are frequent and are a result of 2008 – they are going to continue. Perhaps the most serious crisis is the present one with the US debt it has the potential to take us back to where we were in fall 2008. With band aid approaches the turmoil will continue and a crash is inevitable – it may be today, tomorrow or next year. The “perfect storm” will be an intersection of various issues, such as Europe and US debt default fears occurring simultaneously.
Comment by Andrew — July 28, 2011 @ 4:39 am
( I apologise for my English)
I am sure John and Jon are two really good guys who are trying there best to make there website a success. The owner of the web site, in his case, not sure what he is doing.. maybe in charge of the bizarre disclaimer. Last year I warned them of the difficulties in making money on the ventur. In fact I mentioned how only less then 10 % of investors make a profits with the ventur. Also, I advised them that charts do not work very well with ventur type stocks because of the extreme volatility of the prices and the emotional nature of investors who hold these stocks in time. Now in February with the rise of protest in the Arab world and rising oil prices, I knew, or in fact It was easy to predict, oh don’t forget a fragile economical recovery, the markets will get hit hard . We also had later the same problem of last summer .. Greece, Spain, Portugal, Ireland who have once again problems with there debts. Look ..the first thing that get hit hard in bad economical times is ventur stocks,of all kinds. Now for your predictions on gold…. Bravo you were right but why are you not focusing on companies who do have a lot of proven gold and even better who are producing and don’t have any long-term price contracts that were signed two, three, five years ago. Again guys at BMR, charts are good but they are one tool of many, to predict a price on a stock. On the ventur, charts should be on the last line of a list of tools to be used. Look at it like a good Italian spaghetti sauce. You need a lot of excellent ingredients, patience, experiences to obtain a mama’s world class Italian sauce. Predicting stock prices are the same ..you got to have many ingredients ( tools) to evaluate the possibilities of future stock prices. Ventur stocks…. ad on a Crystal ball.
Comment by Andre — July 29, 2011 @ 1:02 pm