Gold has traded between $1,575 and $1,585 so far today…as of 5:50 am Pacific, the yellow metal is up $4 an ounce at $1,578…Silver is flat at $28.53…Copper has gained 4 cents to $3.52…Crude Oil is up 91 cents to $91.77 while the U.S. Dollar Index is off slightly at 82.06…
CME Group is cutting margins for Gold futures at the end of business tomorrow, according to HSBC…
Today’s Markets
We wish our American friends a happy Memorial Day today…U.S. markets are closed which will mean a quiet trading day on the Canadian markets…Asian markets finished in the green overnight with China gaining 28 points to 2361…European shares are higher this morning on news of a gain in Greek opinion polls of New Democracy, a right-wing and more sensible alternative to the socialist/communist Syriza Party…the rise in support for anti-bailout Syriza has been one of the key factors dragging down markets in recent weeks…New Democracy, which says Greece must become more “business-friendly” and cut taxes in order to attract investment, pulled ahead of Syriza in opinion polls over the weekend…
The euro zone, however, is only as strong as its weakest link and it’s time the cheaters and schemers in Greece be held to account with the country given the boot out of the euro zone…it has abused the privilege of being in the euro zone, and eviction from this group would send a powerful message and remove a constant irritant…the euro zone would then have to seriously ring-fence other vulnerable countries such as Spain, Ireland, Portugal and Italy…
Spain’s borrowing costs have jumped as lingering worries over the state of the country’s banking system and the cost to the state of nationalizing Bankia continued to pound sentiment…yields on Spain’s 10-year government bonds today moved above 6.50% once again – moving closer to the 7% level that prompted bailouts for Greece, Portugal and Ireland…Spain’s cost of borrowing had recovered dramatically from the highs seen at the end of last year after the European Central Bank injected more than 1 trillion euros into the euro zone banking system under its three-year longer-term refinancing operation…Spanish and Italian banks were heavy users of the LTRO, using the money to buy government bonds…
Venture Exchange
The Venture Exchange enters a new week above the 1300 mark after climbing 7% last week…it’s still too early to say this market has finally put in a bottom after a 28% correction since February 29 and a 51% pullback form its 2011 high, but at the very least it appears a significant rally is underway that could carry on for several weeks…if this is true, expect the RSI(14) to overcome resistance at the 50 level as shown in John’s 6-month daily chart below…
RJK Explorations (RJX.A, TSX-V)
We’re keeping a close eye on RJK Explorations (RJX.A) which started a 2,000 metre drill program at its Blackwater East Gold Property in mid-February and should be reporting initial results soon…unlike GoldQuest Mining (GQC, TSX-V), which was a no-brainer at a nickel, we’re more comfortable taking a wait-and-see approach with RJK given evidence of recent selling pressure in the stock…the Blackwater District surrounding New Gold’s (NGD, TSX) multi-million ounce Blackwater-Davidson Project holds immense potential, however, and RJK is certainly an exploration leader in that area…at 20 cents, RJK’s market cap is approximately $17 million, so the stock price is already factoring in encouraging but not outstanding results from this particular round of drilling…below is an updated chart from John…
Adventure Gold (AGE, TSX-V)
Adventure Gold (AGE, TSX-V) found strong support recently just above 20 cents, a drop of more than 50% since March due to overall market weakness…we remain very bullish on AGE’s Pascalis-Colombiere Gold Property near Val-d’Or where a 15,000 metre Phase 3 drill program commenced in mid-February…there’s no reason why AGE should not report solid results from this phase of drilling given previous numbers that showed AGE is identifying a very significant mineralized system at Pascalis…AGE closed at 25 cents Friday…below is an updated chart from John…
Our final chart this morning is on Cap-Ex Ventures (CEV, TSX-V) which, like Adventure Gold, has fallen by more than 50% since March…CEV is due for a substantial rebound…it has dropped well below its still-rising 200-day moving average (SMA) around 75 cents, so a 50% move from current levels to test that area seems reasonable…the declining 100 and 300-day SMA’s are slightly above the 200-day…CEV came under intense selling pressure in April and became quite oversold technically as it hit a recent low of 42 cents…it closed at 50 cents Friday…
Good morning everyone… Because BMR didn’t bring forward GQC this a.m. MAY be an indication
that they also feel, it MAY have run it’s limit. One thing is for sure,if the company is
intending to do a financing around this price, the stock will remain stable at a certain price.
It’s how the game is played. Anyway, good luck to holder of GQC. R !
Comment by Bert — May 28, 2012 @ 5:27 am
Bert,
You may have hit the nail on the head. Many years of staring at substantial gains
tells me that it’s time to pocket some profit on this one. Too far too fast!
Remember fellow investors…when you are really excited about a stock…probably time
to sell…when you are disgusted with a stock…probably time to buy!!
Comment by Paul — May 28, 2012 @ 7:05 am
Hey Bert. Looks like a good call. Sold another chunk at 42 and always appreciate good advice. Don’t worry I always make my own mind up on all decisions but appreciate sound advice.
Comment by Patrick — May 28, 2012 @ 7:14 am
Patrick
Don’t give me any credit please ! Yoggi Berra, it ain’t over til it’s over. I notice it
just bounced back up a little. My last sale was at 0.395 & that’s better than looking at
0.06, so i am very happy & contented, because no matter whom, there’s no way to be
perfect at this game, unless of course, you have inside information. R !
Comment by Bert — May 28, 2012 @ 7:27 am
Thats it sell and buy some RBW boys.
Comment by Gerry — May 28, 2012 @ 7:27 am
Nice support at 18c right now…on RBW that is
Comment by db — May 28, 2012 @ 8:13 am
It appears GQC may be doing a financing at around 0.35-0.40, but who knows ?
Comment by Bert — May 28, 2012 @ 9:59 am
db – you were right on with HRN. I can’t believe the run AOI is having too!
Comment by Andrew — May 28, 2012 @ 10:51 am
HRN has been very good to me so far!Ive been daytrading it but Im not sure how much she has left in her…
Comment by db — May 28, 2012 @ 11:50 am
I can’t run away from the fact that i was wrong about GQC today. It appears that
something happened late in the day, either a fact or a rumor,m who would have
known.. Anyway, i have changed my mind & feel that a financing will now be higher
than 0.40. I have egg on my face & my mind keeps reminding me that i talk to much,
sorry ! R !
Comment by Bert — May 28, 2012 @ 12:00 pm
Wow GQC closes at 60c up 1000% in a week. Something big going on. Any ideas?
Comment by Patrick — May 28, 2012 @ 12:16 pm
would anyone give their opinion on ugd in the same area as gqc with a very large land position bought some a few days ago up 35 percent not nearly as good as gqc but may follow cqc on the way up.Comments please
Comment by gil — May 28, 2012 @ 12:23 pm
Up 54% today – what a missed opportunity! :)It was so O/B I thought it would be chasing it now.
Comment by Andrew — May 28, 2012 @ 12:27 pm
A 10x bagger from .06 – just goes to show you never know even when the markets aren’t good! 🙂
Comment by Andrew — May 28, 2012 @ 12:50 pm
Andrew
Don’t be too hard on yourself. Obviously, something positive was being whispered this afternoon,
& who would have guessed earlier today. We are all experts after the fact(s), but i am not a
bit bothered, i made a decision & will live with it.. There are more runs for us out there
somewhere. R !
Comment by Bert — May 28, 2012 @ 2:07 pm
End of May is quickly approaching, Friday being June 1st. Are we still expecting a Jewel Ridge update and will it have enough substance to break the SP thru resistance? Opinions…
Comment by db — May 28, 2012 @ 3:08 pm
My gut feeling, especially with the 19’s being taken out today, is that this is about to take off to the upside…..key resistance is .20 which we’ll be showing shortly on John’s updated chart….there’s new bullish momentum with RBW and with drilling set to start soon at Gold Viking, the bias has to be to the upside…..the chart is looking fantastic. I picked up some more Friday at .18. News sometime this week seems likely – Jewel Ridge for sure I would suspect.
Comment by Jon - BMR — May 28, 2012 @ 3:14 pm
Jon – I picked up some more RBW Friday at .18.
Bert – You will soon own the company.
Comment by Bert — May 28, 2012 @ 3:18 pm
As for the RBW chart, the 20/50 ma’s are out of whack.
Comment by Bert — May 28, 2012 @ 3:23 pm
Jon- You’d figure they want the SP well above 25c by the end of June so the warrants get exercised. I know extending the expiry of them in an option but that never looks good on the company when that happens…RBC on the buy all day and my reasoning tells me RBC is someone close to the company (I am RBC aswell but it wasnt me today)…
Comment by db — May 28, 2012 @ 3:27 pm