Gold has been bouncing around today but the yellow metal is holding above $1,700…as of 8:50 am Pacific, Gold is up $7 an ounce at $1,727 after touching a low of $1,715…as we mentioned last night, Gold has been range-bound this month between $1,700 and $1,800 and that trend could very easily continue…if Gold were to dip below $1,700, there is very strong support at $1,675…the bottom of Gold’s important trendline support, which has been so incredibly reliable over the long-term, is about $1,625…Silver (see new chart below) is 48 cents higher at $32.18…Copper has climbed 3 pennies to $3.40…Crude Oil is down 53 cents at $98.29 while the U.S. Dollar Index is down one-third of a point to 78.05…
The CDNX closed at 1599 yesterday and is currently up 7 points at 1606…so far, the Index is holding critical support between 1575 and 1600…breach of that support would kill the rally since October 4 and usher in a declining 300-day moving average (SMA) which will almost certainly reverse to the downside anyway by early January at the latest…the big picture outlook remains bearish, so we continue our cautious stance…
On the flip side, a very bullish-looking chart remains the HIX which is the short ETF for the S&P/TSX 60 (the double-leveraged version is the HXD)…on October 30, we highlighted the HIX (the HXD chart is essentially the same, just different values) which closed Friday, October 28, at $10.99 (the HXD closed at $9.41 that day)…the article was titled, “HIX Chart Points To Market Pullback“…examining the charts of these short ETF’s, they are clearly in bull markets of their own which underlines the unhealthiness of the equity markets and makes one very suspicious of the recent rally…the HIX and HXD staged normal Fibonacci retracements after surging to $12.66 and $12.57, respectively, on October 4…they held important support and shot up impressively again yesterday with the HIX touching $11.59 and the HXD hitting $10.44…below is an updated chart for the HIX…given the way this chart is developing, a new 52-week high seems very possible by early 2012…a reversal to the upside in the 300-day SMA appears inevitable by January…near-term, as John’s chart points out, the HIX can expect to find resistance around $10.70…accumulation on any pullback or weakness seems to make sense…as of 8:50 am Pacific, the HIX is off 6 pennies at $11.51 while the HXD is down 2 cents to $10.35…
An interesting chart to keep an eye on is New Gold Inc. (NGD, TSX) which since late 2009 has found support at or very slightly below its rising 200-day moving average (SMA)…NGD is trading just slightly below its 200-day this morning at $10.68 (down another 17 cents)…it’s oversold based on Stochastics and the Chaikin Money Flow (CMF) indicator, while RSI(14) has almost touched its late September/early October low…
As promised, below is John’s updated Silver chart showing a strong support band between $29.60 and $30.00…
Regarding NGD, there’s goes the argument that in today’s market, producers are the safest bets. R !
Comment by Bert — November 18, 2011 @ 12:08 pm
The Chart on CUI that was provided has done wonders for the share price and really has gotten the investing publics attention…LOL I was curious, does BMR still remind their readers ” How much in percentage gains” they are up on stocks they promote??? AHHH the silence. SFF, SD, CUI, GBB ABI, ISD….etc
Comment by John — November 18, 2011 @ 1:56 pm
john, buddy its time to move on really…., i m getting tired of your rants!! somebody force you buy those stocks? did u do your own DD? no, no, well, move along, it will be better for you to do something more positive in your life at this point.
Comment by alec — November 18, 2011 @ 3:33 pm
Would appreciate BMR comments on SD Sidon though . Folks writing up these comments here on specific companies must have had an idea about the type of people running SD as they are involved in several other shell companies i am now learning . What say you ?
Comment by Frank Speaker — November 18, 2011 @ 6:20 pm
Frank I notice since a week you are asking about SD because of your loss of 50 K. Look I have been in the business for over 24 years and I can tell you that the ventur is a place with a lot of shady characters. I could tell you many incredible stories dealing with people involve in the ventur business. Ventur stock are not a place most of the time to be long. Over 90 % of investors on the ventur loose there money. The trick to make money on the ventur is not to be to greedy and take your profits. When SD was trading at 10 cents and went up to 19 cents well that was a 100 % gain and it would have taken you in bank GIC ‘ s over what … 50 years to make the same results. Now the stock went up and down many times making it a excellent stock to trade…not keep for long. In bad markets 95 % of ventur stocks often trade 80 % less . next time take your profits …stay out of the markets when things are bad…. buy back when things are getting better. I am out of the market since march. Did a few trades with GBB and SFF made a few bucks and my health is doing pretty good. Good luck to you in the futur…
Comment by Andre — November 18, 2011 @ 8:48 pm
No not down that much on SD. Don’t mind being down as trades are my responsability . Know about the Venture , made a film about it as a project while taking Bus Adm @ BCIT . Have done well on the Venture . Lots of companies on the Venture have good assets aside from the scams . SD appears to have been a scam within a stable of scams by the same scam artist parties . SD was touted here and am curious how the folks here missed so completely on that aspect .There must be a story as to why the true story on SD was so wrong as touted here so often . Curious as to why no mention has been made as to how such of a whopper of a mis call could have occured .
Comment by Frank Speaker — November 18, 2011 @ 9:23 pm
Someone on this board suggested a couple weeks ago that we share picks, so I did. Congrats to those making money in CEV, CJC is next. Make out your Christmas list and thank me later. I will be out of town for a couple weeks but will check in from time to time.
Comment by dave — November 18, 2011 @ 9:47 pm
By the way, time on CJC is running out. they have hit Bastnasite in thier cores. They should smoke GMA discovery results and if they hit heavy REE, its blue sky. A homing pigeon candlestick Thurday and a bullish engulfing on Friday. DD this one and watch it CLOSELY if you do not yet have a position.
Comment by dave — November 18, 2011 @ 9:51 pm
P.S. Andre — Have been trading on the Howe st exch about 20 years longer than you declare and come to think of it made your suggested trade on the double up of SD so am around even . Am moved from Van to the East coast for some time now . Just wondering how the Van boyz that put BMR and are close to the ground could be so wrong with SD management and SD itself.
Comment by Frank Speaker — November 18, 2011 @ 9:57 pm
Related to Sidon (SD) a move on Kokanee Minerals. Will there be a move on SD too. To me SD is a scam. No one is able to get in contact with the company lately. That tells enough. They can do better on their marketing…lol.
Kokanee Announces Management Changes
Kokanee Announces Management Changes
VANCOUVER, BRITISH COLUMBIA–(Marketwire – Nov. 3, 2011) – Kokanee Minerals Inc. (“Kokanee” or the “Company”) (TSX VENTURE:KOK) announces that Mr. Souhail Abi-Farrage has resigned as President and Chief Executive Officer of the Company. Mr. Farrage has been appointed the Company’s Vice President of Exploration (Tanzania). Ms. Michelle Gahagan replaces Mr. Farrage as President and Chief Executive Officer. Ms. Gahagan has also been appointed a director of the Company. Ms. Gahagan is replacing Mr. Manuel Chan on the Company’s board of directors. Mr. Chan has resigned to focus more time on personal business interests. Kokanee has also appointed Mr. John Jardine as Chief Financial Officer of the Company.
Ms. Gahagan is currently a principal of a privately-held merchant bank based in Vancouver and London. Prior to the commencement of her involvement in merchant banking five years ago, Ms. Gahagan graduated from Queens University Law School and practiced corporate law for 20 years. Ms. Gahagan has extensive experience advising companies with respect to international tax-driven structures, mergers and acquisitions. Ms. Gahagan has successfully completed the Investment Management Certificate course and is a Qualified Person under the Financial Services Authority (UK) regime. Ms. Gahagan is currently the President of Suparna Gold Corp. and a director of ArPetrol Ltd., Bowood Energy Inc., eShippers Management Ltd. and CellStop Systems Inc., all companies listed on the TSX-V.
Mr. Jardine has 30 years experience managing accounting and financial compliance for public companies trading on various Canadian and U.S. exchanges. As president of J. W. Jardine & Company Ltd. in West Vancouver, B.C., an accounting firm providing services to public and private companies, Mr. Jardine specialized in compliance financial reporting, company tax planning and tax preparation. From 1988-1989 he was vice president, finance of Samoth Financial in Vancouver, in charge of accounting department supervision and public company and real estate transactions. From 1984-1988 he was Vice President of finance of Noramco Mining Corp. in Vancouver, B.C. where he managed the financial compliance for more than 50 Vancouver and Toronto Stock Exchange-listed companies. From 1981 to 1983, he was financial accountant for Andex Oil Corp, in Calgary. Mr. Jardine completed his B. Comm in 1975 from Carleton University in Ottawa, Ontario and completed his Certified Management Accounting designation in 1981.
On behalf of the Board of Directors
Souhail Abi-Farrage, Director
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Marketwire Canada
November 3, 2011 – 9:30 AM EDT
Comment by Arjan — November 18, 2011 @ 11:48 pm
Dave, thanks for the further comments on CJC – I like the TA updates you give. I’ve no idea what a homing pigeon candlestick is so I’ll check it out. Where did you learn your TA? Is there a course or book you recommend for someone like me? VGD continues to disappoint so I’ll do some TA studying this weekend and maybe make a switch on Monday. CEV, I thought was going to correct further from Thursday but, of course, it didn’t. Not sure if you can see this in TA. I tend to put some weight on the buy:sell ratios and with CEV it is a multiple buy:sell ratio and just the opposite with CJC but you said to ignore level 2 on CJC so I did. 🙂 Have a good weekend.
Comment by Andrew — November 19, 2011 @ 8:43 am
News should be just around the corner for VGD now that financing will be closed in the next couple of days.
FLX should also be reporting news soon………not sure why it is taking so long to get core analysis from the labs etc.
Comment by Wolfin13 — November 19, 2011 @ 12:09 pm
In regards to SD……..Frank Speaker puts it quite well “SD appears to have been a scam within a stable of scams by the same scam artist parties . SD was touted here and am curious how the folks here missed so completely on that aspect .There must be a story as to why the true story on SD was so wrong as touted here so often . Curious as to why no mention has been made as to how such of a whopper of a mis call could have occured”
Can we pls have a comment from BMR on the above other than the stock went up/dwn and one had plenty of opportunity to make money on the stk. This is widely known with most stks. The question still is..how could BMR make such a mis call on this one with dealing directly with the CEO?
Were there no tell tale signs that u and investors were being set up? & have u tried to contact SD since and done any investigating on the matter? Thanking u in Advance for ur efforts & time.
Comment by nikolay — November 20, 2011 @ 9:19 pm
Nikolay, SD was very much a speculation play based on its Morogoro East Property and drill results did not pan out. We expressed concerns about SD last fall based particularly on one poorly prepared news release, and one of my exact quotes was “don’t get married to this stock”. This is the speculative and volatile junior resource market. Stocks go up and they also go down – sometimes they drop faster than they go up, so investors always have to be extremely careful. There is one reason for buying a stock – that it will go up – and many for selling. Investors need to do their own DD and buy and sell in accordance with their own comfort zones. Always keep in mind that many Venture companies with great potential fail simply because of poor management.
Comment by Jon - BMR — November 21, 2011 @ 6:01 am
Mr. Jon…..On ur Oct 6, 2010 Update on Sidon “With that in mind we view the recent drop in Sidon’s share price as an opportunity and a normal development within an ongoing bull phase, not the sign of a problem.”
“Below, John has an updated chart on Sidon and examines how it looks from a technical perspective:”
Not the sign of a problem?? were u words not “don’t get married to this stock”
In any case, whatever…I know it’s not ur fault the stock crashed, however with all ur write ups, my interpetation was it was a great investment. Question is.. have u tried to contact them and see what’s in the future with them? The land etc. they hold is still of some value or they closing the doors for good?
Greatly Appreciated, Nikolay
Comment by nikolay — November 21, 2011 @ 6:54 am
Nikolay, at that point in early October Sidon was a technical buy….and it did go higher by early December….yes, I did write “don’t get married to the stock” around that time and some readers weren’t happy with that, but so be it…these Venture companies as you know can be extremely volatile and to be successful in this market you can’t just buy and hold most plays…the bottom line is, the drill results didn’t pan out and that’s the risk in this business…Sidon is attempting a restructuring and hopefully they will be successful…I have not spoken with management anytime recently…I will try to get some more information for you…
Comment by Jon - BMR — November 21, 2011 @ 6:59 am
Thanx Jon, what ever u can find out would be great, guess we all have the time to be patient. Restructuring would be great, maybe u can have them post that after restrictions are lifted? if that’s the way they’re going to go.
regards Nikolay
Comment by nikolay — November 21, 2011 @ 8:45 am
It seems they’re doing a re-structuring and that would be positive. Will find out what I can.
Comment by Jon - BMR — November 21, 2011 @ 8:53 am
Jon — The up down nature of stocks ,profit taking strategies ,and chances of hitting a good result are well known generic items on exploration plays. We are asking about the credability and basic honesty of management in a specific company SD .You were dealing with them but seem to be evading the main point being asked here . From what is coming out now they seem to be well known serial scammers .Known by those on the ground at Howe Street .Many of your followers are thousands of miles away or more .Generally in any write up about a company the quality of management is mentioned and is a factor .Basic honesty is a requirement in any business .Yes they are shady characters on the Venture but if you are touting stocks run by crooks then that is another matter . How did you miss that very essential aspect ? Hate to belabor the point but it is still unanswered and important .
Comment by Frank Speaker — November 21, 2011 @ 9:03 am
Frank, I’m not evading anything. I spoke to Kamal at length on a couple of occasions and I found him to be very upfront and dedicated to making Sidon a success. Yes, management did not have a track record of success – people were aware of that. From a technical perspective, the stock was very attractive at various stages and had excellent liquidity. Tanzania was hot, and Sidon rode the wave. I had a couple of conversations as well last year with Stephenson, the geologist, and he was very excited about the potential of SD’s land package. We didn’t do a lot of coverage on SD, especially later on in the year. These markets and stocks are extremely volatile as you know. Things could have worked out very differently for SD had they hit on their drill program. They’re going through a restructuring and hopefully they’ll be successful.
Comment by Jon - BMR — November 21, 2011 @ 9:24 am
Thanks Jon —If i recall correctly Mr Banes has written in The Sun about the track record of Stephenson.Very similiar to that of SD management.
Comment by Frank Speaker — November 21, 2011 @ 10:09 am
Stephenson is certainly a good talker, so your point is well taken, Frank (he is very knowledgeable though about Tanzania). The Sidon experience illustrates how important it is to put strong emphasis on management in any assessment of a CDNX company one may wish to invest in. Sidon got caught up in the bull market, exactly around the time excitement was building rapidly in companies involved in Tanzania due to Canaco’s discovery. When we uncovered Sidon at a nickel, it was a great speculative investment. Some investors smartly took profits along the way while others may have gotten a little greedy and expected a 10-bagger or better. Others came in late. One rule that we have always pointed out is that with these speculative plays, it’s a good idea to sell when you’re down 10%. Limit your losses. You should never allow yourself to be in a situation where you’re down 50% or more on a stock. That’s one of the hardest things for investors to do, to cut their losses and move on. Each one of us makes mistakes in the market. Keeping your losses to a minimum is crucial.
Comment by Jon - BMR — November 21, 2011 @ 10:24 am
For those of us who still hold a position in
SD – if the re-structure is not successful and/or the proper reporting not brought up to date, how do you go about claiming a capital loss on a stock that is not trading -sorry for such a basic question
Comment by Barry — November 21, 2011 @ 1:21 pm