BullMarketRun.com

Gold fell as low as $1,640 overnight but has recovered somewhat…as of 6:00 am Pacific, the yellow metal is off $7 an ounce at $1,652…Silver is now up 7 cents to $31.57…Copper is unchanged at $3.65…Crude Oil is 29 cents lower at $102.54 while the U.S. Dollar Index is down slightly at 79.98…

Bullish Contrarian Sign For Gold

For the fourth time in the past year, Gold bears outnumbered the bulls in Bloomberg’s weekly Gold Bull/Bear Sentiment Survey…in fact, the bears had the bulls outnumbered by almost 2-to-1…

Today’s growing sloth of Gold bears is a “buy” signal for contrarian investors…research from the Gold team at Canaccord Genuity, as reported at www.usfunds.com over the weekend, found that Gold rallied about 10% on average during the month following each of these sentiment “cross-overs”…this historical increase means that Gold could potentially rally to the “high $1,700’s per ounce”, which Canaccord believes “would breathe some new life into the Gold equities”…

Another interesting chart this morning, from National Bank Financial that appeared in the Globe and Mail, shows how the TSX Gold Index, in relation to Gold itself, has nearly touched the panic-driven oversold lows not seen since the 2008 meltdown…either we’re in a new realm for Gold stocks or we’re about to see a major turn to the upside…

Spanish Yields At Highest Level This Year

Spanish 10-year government bond yields broke above 6% for the first time this year today as concerns over the country’s ability to keep its finances under control pushed debt markets back into “crisis mode”…Spanish yields are expected to rise further toward the panic-triggering 7% level beyond which debt costs are widely seen as unsustainable unless the European Central Bank resumes its bond purchases after a two-month break…

China Currency Move

A move by China Saturday to double the size of the yuan’s trading band against the U.S. Dollar is a strong signal that Beijing is comfortable with economic growth and believes it has avoided a hard landing…this was also a milestone step toward turning the yuan into a global currency…

The Shanghai Composite Index was essentially unchanged today, closing at 2357…the chart for the Shanghai is very interesting and shows strong potential for a major breakout in the coming weeks…such an event would be positive for global equities as a whole…

Today’s Markets

European markets are higher today while stock index futures in New York as of 6:00 am Pacific are pointing toward a strong open on Wall Street…the TSX and the TSX Venture Exchange have each declined for seven consecutive weeks, so a turnaround very soon is likely in the cards…

U.S. retail sales rose more than expected in March as Americans shrugged off high gasoline prices and bought a range of goods, suggesting that economic growth in the first quarter did not slow as much as many had feared…the rise in sales last month (0.8% vs. a forecast gain of 0.3%) was broad-based, even though Americans paid 27 cents more per gallon of gasoline than they did the prior month…so far, Americans appear to be taking rising gasoline prices in stride, thanks to a mild winter that has cut household heating bills…

Rainbow Resources (RBW, TSX-V)

John has several individual company charts to share this morning beginning with Rainbow Resources (RBW, TSX-V) which has pulled back into an zone of strong support…on Saturday, we spoke briefly with RBW President David Johnston who was checking on his recently-optioned Jewel Ridge Property in Nevada along with senior geologist Bob Morris…Johnston’s tone was very upbeat, and what we see potentially unfolding in Nevada is a terrific appetizer before the main course to be served in the West Kootenays this summer…the chart shows declining volume during a consolidation (normal) and consistent accumulation…the overall technical picture remains very attractive…

Note: John and Jon hold positions in RBW (Terry does not).

RJK Explorations (RJX.A, TSX-V)

The Blackwater Gold District in central British Columbia, which BMR has been following since Richfield Ventures‘ discovery in late 2009, could really heat up this summer, and a leader in that area is unquestionably RJK Explorations (RJX.A) which started a 2,000-metre drill program at its Blackwater East property in early February…the stock has broken out from a horizontal channel as John details below…

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

Golden Predator (GPD, TSX)

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

Canaco Resources (CAN, TSX-V)

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