BullMarketRun.com

Gold is beginning to firm up after touching an overnight low of $1,727…as of 5:30 am Pacific, the yellow metal is up $4 an ounce at $1,736 an ounce…Silver is a nickel higher at $33.99…Copper is up a penny at $3.89…Crude Oil is 74 cents higher at $99.45 while the U.S. Dollar Index is down nearly one-fifth of a point at 78.52…

Chinese inflation jumped in January, breaking a streak of five straight monthly declines, but seasonal factors were largely to blame and price pressures are expected to weaken in the coming months…the consumer price index rose 4.5% from a year earlier, up from December’s 4.1% pace…the main cause of the rebound was a shopping blitz before last month’s Chinese New Year holiday which pushed up good prices, an effect which has regularly been seen in the past and is likely to be temporary…core inflation, stripped of food costs, rose much more slowly, giving Beijing some room to stimulate the growing economy if necessary…

Asian markets were flat today while European markets are modestly higher…as of 5:30 am Pacific, futures are pointing toward a positive open in New York…in late breaking news, the Financial Times reports that Greek politicians have apparently reached an austerity deal which paves the way for more bailout money…

Copper, a leading indicator and an excellent barometer of the global economy, has climbed more than 12% this year – in line with the increase in the TSX Venture Exchange…both markets are up against short-term resistance at the moment, however, and may require a little more time to gather new energy and explode higher…below is an updated Copper chart from John…notice how the weekly EMA(20) – currently at $3.68 – has been a close supporting moving average in the past…it recently reversed to the upside and can be expected to provide support going forward…a breakout above the resistance band is likely but that may not occur until the weekly EMA(20) is successfully tested – we’ll see…the increase in buying pressure recently is impressive…Copper is definitely in a bullish state, so any potential near-term pullback should not be a concern as it would only be very modest and  temporary…great sign for the Venture Exchange…

Kaminak Gold Corp. (KAM, TSX-V), one of our favorite Yukon plays, has jumped over 50% since its December 15 low of $1.75 (it declined 9 straight days that month) which shows the importance of accumulating good quality stocks on weakness…for those who missed that move, however, Kaminak is still at a favorable entry point after closing yesterday at $2.70…the 100-day SMA has flattened out around $2.55 and should reverse to the upside in the near future…the Yukon will be a hotbed of exploration activity again this summer, so it’s almost a no-brainer to be positioned in KAM and some other good Yukon plays now and sell into strength in six months…below is John’s updated chart on KAM which recently staged an important breakout…

Note: John, Jon and Terry do not currently hold positions in KAM.

It has been a good week for traders/investors in Encanto Potash (EPO, TSX-V) which climbed 3 pennies yesterday to close at 35.5 cents on over 4 million shares (all exchanges)…momentum continues…as John’s updated EPO chart below shows, the stock appears to be in a trading range at the moment between 30 and 40 cents…it’s always important to keep in mind the support and resistance levels…ultimately, EPO should blast through the 40-cent level given a pending reversal in its 100-day SMA and other bullish technical factors…

Note: John, Jon and Terry do not hold positions in EPO.