BullMarketRun.com

After encouraging signs early this week, which even fooled us, gold suddenly and violently went into reverse this morning and is now down a whopping $47 on the day to $1,063 as of 8:50 am Pacific time…the good news is, we know that gold has tremendous support around the $1,025 area which means the precious metal is only $35 off our worst-case scenario bottom (we may not even reach that) which we have warned has been a possibility (a “head fake” as we suggested, prior to a massive run to the upside)…gold’s bull market remains firmly intact, even with a drop back to $1,000, as it continues to be underpinned by a rising 200-day moving average…sharp sell-offs as we’re now witnessing have always been a buying opportunity in gold over the last decade…an all-out crash in commodities is simply not confirmed by the CDNX…the Venture is down heavily this morning to 1,466, dropping below its 50-day moving average for the first time since July of last year…keep in mind, however, the CDNX is essentially unchanged from its December high while gold is down 13% and the TSX Gold Index is off 24%…this bullish divergence, which is the opposite to what we saw prior to the crash of 2008, strongly suggests that a crash now is simply not in the cards…we are embracing this correction and buying into high quality situations on weakness…at the top of that list is Gold Bullion Development Corporation (GBB, TSX-V) which we believe is on the verge of a significant discovery at its Granada Gold Property near Rouyn, Quebec…Gold Bullion jumped 2 cents yesterday to .115 and is down a penny in a weak overall market this morning to .105…buying into weakness is how money is made in the markets…