Gold retreated to strong support this morning and has since jumped back up over $1,700 an ounce…it fell as low as $1,681…as of 8:40 am Pacific, the yellow metal is down $11 an ounce at $1,704…Silver is $1.03 lower at $33.21, Copper is off 8 cents at $3.52, Crude Oil is down nearly $3 a barrel at $90.40 while the U.S. Dollar Index has gained a full point to 77.52…
Markets took a hit this morning on renewed fears over the euro zone debt crisis after a perplexing and controversial decision by Greece to call a referendum over its debt bailout…the European mess continues and it’s not going to end anytime soon…in addition, prospects for global growth were dampened by data from China showing the country’s big manufacturers ran at their slowest pace since October 2009 with the official purchasing managers’ index (PMI) falling to 50.4 in October from 51.2 in September…meanwhile, the pace of growth in the U.S. manufacturing sector unexpectedly slowed in October while growth in U.S. construction spending also eased in September, according to separate reports released this morning…
The CDNX is down 33 points at 1582…the 1575 area that we identified yesterday as potential strong initial support on a pullback is holding so far…the Index has a lot of heavy lifting to do as we wrote over the weekend as it’s battling a very strong resistance band between 1600 and 1700…our “big picture” view is that this is a market (a bear market) to be extremely careful with right now…however, on the encouraging side, Gold is performing well and looking very bullish, though a potential explosion in Gold due to the European debt crisis and a host of other fires that could re-ignite would of course not be positive for equities…in addition to Gold, though, John is also seeing bullish signs in the CRB Index which is interesting as shown in the chart below…it’ll be important to keep a close eye on this Index (key support is 292) as the month progresses as it has always proven to be an accurate leading indicator of the global economy…
Jon…Does this private placement from Cadillac mean that they dont believe that the results will be very good from all of Visible Golds drilling or that it may take a very long time to get these results? Maybe because the private placement is so small its just enough to keep things going for now during this down period.
Comment by Ed — November 1, 2011 @ 11:20 am
I’m guessing CQX’s pp is just sufficient to show some intention to follow up at the Goldstrike Property (not sure why the finder’s fee is so high for such a paltry pp) and prevent the sp from evaporating if VGD doesn’t provide positive results very soon.
Comment by Andrew — November 1, 2011 @ 11:42 am
I think the pp is to show that they are maintaing schedule on executing their drilling plans in November as announced. I don’t think it is tied to the results from VGD’s drilling. Even good results from VGD may not pop the stock high enough since the market is risk adverse at this stage. For example: KSK came out with a huge hole (~1.0g/t over 100m) and the stock hasn’t moved) – in a “risk on” environment the stock would have rallied. However, good point Andrew – the finder fee does seem high, but that’s probably because of the hard sell required for the pp. CQX has done a poor job promoting themselves.
My intuition tells me that the results from VGD will dissapoint. Typically, companies are quick to release good results and my experience has been that whenever companies are slow to release results its normally because they aren’t very good. I find it hard to believe labs are that back logged. My feeling is that VGD is going to wait to release the results until they are completely finished their drilling program in hopes to hit some nice holes on other targets to try to hide some of the poor results.
Comment by Andrew M — November 1, 2011 @ 12:58 pm
As for CQX, pp should put a floor to the sp decline, so that’s a good thing.
I guess the finder’s fee is high considering that it was able to secure financing at 10c despite how the stock was trading.
They are diluting about 10%. The small amount is understandable considering that they don’t want to dilute much. But this is a result of not raising money during a higher price.
Greece just dropped a bomb. The rest of the Europe was willing to help Greece with months of negotiations. Those people are just unbelievably …
Comment by Bruce — November 1, 2011 @ 1:04 pm
I think your intuition re VGD may be correct, Andrew M. Reminds me of another CUI and the only hope for VGD will be Joutel and who knows when any results will be available from there – sometime next Spring? Hope I’m wrong though, as I haven’t, yet, sold my holdings. The October rally did nothing for VGD. It seems that buy and hold is not the way to go anymore (hasn’t been all year).
Comment by Andrew — November 1, 2011 @ 1:41 pm
It’s difficult to believe that lab’s can be that slow & hopefully VGD are not
withholding results, but if i had an inkling they may be, i would report them.
Companies must follow guidelines, the same as i, lowly Bert am subject to. No
one should ever consider deviating from moral standards. R !
Comment by Bert — November 1, 2011 @ 2:37 pm
It does seem too long a period has elapsed since the first assay from Wasa Creek, Bert – 3 months I think?!
Comment by Andrew — November 1, 2011 @ 2:52 pm
Its interesting how you state in the above chart that it is starting to look interesting for commodities and yet you are recommending readers to look at such products as HXD and HIX. A bullish outlook for commodities should translate into a bullish outlook for the TSE.
I do read your site from time to time. The charts you post sometimes are quite nice. But as a previous reader stated a few days, your recommendations seem out of whack. These inverse products you mentioned would have been great calls a few months ago, not after we seen such big moves down. The stocks that you always wrote about daily I see that you barely mention them anymore.
I wish nothing but the best for you guys in your efforts to become a paid subscription site but to get to that point investors need to see results. For example, if you say that you first recommended GBB at 50 cents and it went up to 1 dollar, you should state that you are up 100%. If it went down to 20 cents, you should state that you are down 60%. Also, it would be nice to say that you exited a position at whatever price. Set up a modal portfolio and keep readers updated on your performance. If your performance is good, people will pay. I don’t think that ignoring all the stocks you mentioned time and time again serving you or your readers well. People want to see performance. If you had to take a haircut on some picks, say so, people will respect that.
Comment by seamus — November 1, 2011 @ 4:33 pm
Any comments on Sidon Cease Trade Order?? anyone able to reach the company by phone??
Comment by M. — November 1, 2011 @ 7:00 pm
A Cease Trade Order has been issued by the British Columbia Securities Commission on November 1, 2011 against the following company for failing to file the documents indicated within the required time period:
Symbol Tier Company Failure to File Period
Ending
(Y/M/D)
SD 2 Sidon International A comparative financial
Resources Corporation statement for its
financial year ended April 30, 2011
Interim financial
statements for the
Financial period ended July 31, 2011
A Form 51-102F1
Management’s Discussion &
Analysis for the periods
ended April 30, 2011
A Form 51-102F1
Management’s Discussion &
Analysis for the periods
ended July 31, 2011
Upon revocation of the Cease Trade Order, the Company’s shares will remain suspended until the Company meets TSX Venture Exchange requirements. Members are prohibited from trading in the securities of the company during the period of the suspension or until further notice.
Comment by Andrew — November 2, 2011 @ 4:59 am
Hello John, you post a chart for CANACO every now and then. Looks like it is putting in a trend reversal? Would a white candle at close confirm this? Thanks.
Comment by Andrew — November 2, 2011 @ 6:36 am
Hi Andrew
Yes it would confirm a reversal.
Pattern is a bottoming “W” which is a reversal pattern but the SP will run into resis. between 2.00 and 2.15. Must clear 2.15 on higher Vol.
Hope this helps.
Comment by John - BMR — November 2, 2011 @ 6:51 am
Thanks John, much appreciated.
Comment by Andrew — November 2, 2011 @ 6:56 am