BullMarketRun.com

The bullish divergence we have been writing about recently between the CDNX, the TSX Gold Index and gold itself seems to have correctly predicted a move in the price of gold which is up again this morning to $1,115 per ounce…gold has now jumped $35 over the past two days, and a gentle pullback and a consolidation between $1,100 and $1,120 would be healthy from a technical standpoint…the bullish divergence theory has proven to be extremely accurate and suggests that gold and commodities in general are headed much higher…there are conflicting indicators, though, including a stronger U.S. dollar…the CDNX is up six points to 1,516 as of 9:50 am Pacific time…Ventana Gold (VEN, TSX), which is not part of our portfolio but which we wrote about yesterday, has indeed broken out technically and at 9:50 am is now at $7.80, up 44 cents…we were buyers yesterday at $7.20 and $7.34…Ventana is very undervalued, given the size of its resource at La Bodega in Colombia, and there seems to be a growing realization that it will have no difficulty winning its legal dispute with the La Bodega property vendors through the arbitration process or prior to that in a cash settlement…Ventana appears headed for its 100-day moving average just under $9.00…all is quiet with our portfolio this morning…Richfield Ventures (RVC, TSX-V) is showing signs of bottoming out at the $1.00 level where we consider it a very attractive long-term buy though it could still test support around the 90 cent area…