BullMarketRun.com

Gold is showing additional weakness this morning…the yellow metal managed to hold support around $1,750 overnight and bounced back as high as $1,777…during the last hour, however, Gold has turned south and is off $25 an ounce at $1,744 as of 7:50 am Pacific…Silver is 66 cents lower at $33.38…Copper has lost a dime to $3.35, Crude Oil has gained $1.14 to $96.88 while the U.S. Dollar Index is off slightly at 77.82…

The U.S. Labor Department said initial jobless claims fell by a slightly more than expected 10,000 to a seasonally adjusted 390,000 in the week ended November 5, the lowest level since April 2…the four-week average of new claims, seen as a better indicator due to the reduced volatility, dropped by 5,250 to 400,000, the lowest level since April 16…

Investors remain focused on events in Europe as the debt crisis in the euro zone deepens…in a crucial test of its ability to avoid a bailout, Italy managed to find buyers today for 5 billion euros of new debt but paid a painful price to get them out the door…investors demanded a yield, or interest rate, of 6.087% on the 1-year bills, the highest since 1997 and up from the 3.57% at a similar auction a month ago…the Italian treasury, however, took some pleasure in learning that demand was strong, at two times the amount on offer…

China’s exports rose at the slowest pace in almost two years in October as Europe’s woes crimped demand, adding pressure on policy makers to support growth in the world’s second-biggest economy…exports rose 15.9% year-on-year, down from 17.1% a month earlier…imports, however,  increased 28.7%, accelerating from a 20.7% pace, showing domestic consumption remains strong…economists at Barclays Capital cautioned that the jump in imports may have been exaggerated by producers taking advantage of the correction in global commodity prices to build inventories of crude oil and copper….official data released this morning howed that China’s copper imports in October stood at 383,507 tonnes, virtually on par with September’s imports, which were at a 16-month high, while imports of iron ore, a key steelmaking ingredient, fell to 49.9 million tonnes, the lowest since February…analysts expect that iron imports will rebound somewhat in coming months as mills restock and steel production picks up during the traditionally busy winter months…

The CDNX, which took a 49-point hit yesterday, is off another 6 points at 1615 as of 7:50 am Pacific…cracks are beginning to appear in this rally and next week may not be pretty…the Index fell below its 10-day moving average (SMA) yesterday for the first time since October 20 when the 20-day SMA provided support…strong and perhaps critical support exists around 1575 with the 20-day currently at 1595…the TSX short ETF’s, the HIX and the HXD, have both held important support and are gaining momentum…Adventure Gold (AGE, TSX-V) and RT Minerals (RTM, TSX-V) were both halted shortly after the opening bell this morning with news now out…AGE, RTM and Lake Shore Gold (LSG, TSX) provided an update on drilling progress at the Meunier-144 Property where deep drilling continues…the possibility of a down-plunge extension of the Timmins Mine and Thunder Creek orebodies still exists given early indications, but the best assay value obtained to date is 2 g/t Au over 1.1 metres from a zone located at a down hole depth of 2,925 metres…more assay results are pending and drilling continues, but assays are going to have to get a lot better than that…John’s chart this morning is on Currie Rose Resources (CUI, TSX-V) which is trading at 7 cents this morning…CUI has been around for four decades (without a share consolidation), so it will survive any turbulence or downturn in the markets…it hasn’t been a good year for CUI, but the company’s Sekenke Project in Tanzania offers strong potential though much more exploration is required…

We apologize for the abbreviated editions of Morning Musings in recent days…Jon’s mother has passed away, after a battle with lung cancer, and he has been attending to various matters…regular postings will resume Saturday…tomorrow is Remembrance Day and Canadian markets are closed…