Gold is flat this morning…as of 5:15 am Pacific, the yellow metal is unchanged at $1,574…Silver is 27 cents lower at $28.16…Copper is up a penny at $3.51…Crude Oil has added 27 cents to $91.13 while the U.S. Dollar Index is off slightly at 82.31…
Today’s Markets
Asian markets were strong overnight with China’s Shanghai Composite gaining 1.2% to close at a two-week high of 2390…traders were buoyed by hopes for additional easing measures from Beijing to support the economy, with carmakers and cement producers in demand, the latter in the belief that an infrastructure boost is on the way…European shares are up this morning while stock index futures in New York suggest a positive open for Wall Street after a long holiday weekend…
Environmental Extremists At It Again
Protests against an Xstrata PLC copper mine prompted the Peruvian government to declare a state of emergency last night…media reports say that two people were killed and 50 were injured in protests against the mine, located in the southern area of Cusco…
A Quick Look At 2012
Below is a 2012 price comparison chart through last Friday for Gold, Silver, Copper, the U.S. Dollar, the TSX Gold Index and the Venture Exchange…
GoldQuest Mining (GQC, TSX-V)
GoldQuest Mining (GQC, TSX-V) has had a spectacular run over the last three trading days after releasing news regarding a very significant discovery hole at its Las Tres Palmas Project in the Dominican Republic…after yesterday’s late session surge, a gap-up this morning seems to be in the cards…from a technical perspective, the stock is certainly overbought but that of course doesn’t mean it can’t move even higher before it starts to unwind that overbought condition…confidence in GoldQuest chairman Bill Fisher, whose previous success stories include Aurelian and GlobeStar, is likely drawing strong institutional interest (Fisher has many institutional contacts) which may account for the sudden surge yesterday…a “bought deal” financing seems to be a certainty…with just that one discovery hole drilled so far, the market has plenty to speculate on and could really kick into high gear when drilling resumes which is expected to be in the very near future…
GoldQuest sliced through resistance at 48 cents like a knife through butter yesterday, and that area now becomes strong support…below is a 2.5-year weekly chart from John that you won’t see very often in your lifetime…it appears investors will continue to chase GoldQuest today…
Folks, this is what is great about the Venture Exchange and junior resource stocks – a major potential discovery and a 10-bagger in less than a week…this is exactly what the Venture needs at the moment, and hopefully more discoveries are on the way…
Rainbow Resources (RBW, TSX-V)
An area that we’re looking at closely for a potential discovery is the West Kootenay region in southeast British Columbia…it’s as mineral-rich as the Dominican Republic and has had a prolific production history…interestingly, however, there has been a surprising lack of drilling in the West Kootenays which merely underscores the geological opportunities…this is why we’re so excited about Rainbow Resources (RBW, TSX-V) which has emerged as an exploration leader in southeast B.C. and will be commencing a major drill program shortly…one stellar hole could turn RBW into a 10-bagger like GQC, and we like the odds considering the fact Rainbow will be drilling into some known high-grade structures at its flagship International Property as well as Gold Viking…neither property has been previously drilled…neither has the Ottawa Property (immediately adjacent to Gold Viking) which is part of the old Ottawa Mines that produced 1.8 million ounces of silver at an average grade of 61.6 ounces per ton…if you like porphyry systems, RBW could be looking at one of those too at its Referendum Property near Nelson where a 4.4% Cu showing was discovered…
The RBW chart is looking strong from a technical standpoint and a breakout through 20 cents would confirm that a potentially powerful new uptrend is underway…the 20-day moving average (SMA) has reversed to the upside which increases the likelihood of a near-term breakout…
Focus Graphite (FMS, TSX-V) and Levon Resources (LVN, TSX-V)
John has updated interesting charts this morning on two additional interesting situations we’ve been following in recent months – Focus Graphite (FMS, TSX-V) – formerly Focus Metals – and Levon Resources (LVN, TSX-V)…
Focus Graphite (FMS, TSX-V)
Levon Resources (LVN, TSX-V)
Note: Both John and Jon hold share positions in Rainbow Resources while Jon also holds a share position in GoldQuest Mining.
it appears that gbb a stock( you formerly covered) is slowly moving up…. I do believe with drill results out shortly it certainly has the potential to follow in gqc’s footsteps. its 43-101 was very positive…and according to management sgc is very excited in what they are analysing…. lots of results soon.
Comment by Natalie — May 29, 2012 @ 5:11 am
HRN should be interesting again today. Big ask at 1.60 but if it can make it thru(it has the volume to), it should be another great day…
Comment by db — May 29, 2012 @ 5:22 am
GreenLight Acquires 7,800 Acre Speerville Antimony Project 1.96% Sb Showing Expanded by Greenlight Crews over 1km
Comment by Andrew — May 29, 2012 @ 5:26 am
So much for a gap up, opened 0.10 down.
Comment by Bert — May 29, 2012 @ 5:32 am
It appears that it may have been a rumor surrounding QGC yesterday.
Comment by Bert — May 29, 2012 @ 5:57 am
GQC mobilizes drilling rig.. Hopefully, i will watch it move down, buy low, realizing that
once the drilling is completed, there could be a long wait for drilling results. R !
Comment by Bert — May 29, 2012 @ 6:13 am
Regarding GQC, In my opinion,(A victim of High frequency trading)as many juniors are ripe for this
type of activity. How many juniors over the last year had this type of news with barely an interest
by the market?
High Frequency Trading Algorithms
Most High Frequency trading algorithms are developed by PhD’s and engineers with a degree in Financial Engineering. There is a lot of statistics and math involved in the making of an algorithm. Programming is also a key element in algorithm development so the traders you see creating these systems are more quantitative then usual traders. An example would be a Volume weighted Average algorithm or VWAP algorithm. This would be programmed into a computer and then triggered when the price diverged a certain set of standard deviations. This system would then trade multiple times a day trying to pick as many pennies out of the market as it could.
This is my opinion as to why these companies are lifted on news and days or weeks later, orphaned at the
side of the road, leaving the investors once again wondering what happened.
I believe that volumes are the giveaway here and that the criteria is complex and guarded by those that execute
these programs. As retail investors ,we all must be made aware of these new techniques that operate strictly
for profit and discard the fundamentals of any given company.
Comment by Paul — May 29, 2012 @ 7:04 am
Interesting post Paul. As for RBW – I don’t see it doing a 10 bagger no matter what the news is: too many free shares out there. GQC was a .06 cent stock on news and terribly oversold, more so than RBW.
Comment by dave — May 29, 2012 @ 7:27 am
GQC
A bought financing for $5,000,000.00 at 0.45, so there you go, that’s how the system works. R !
Comment by Bert — May 29, 2012 @ 1:52 pm
3 hours before open & all i see is a sea of red.
Now it’s about Spain, where they enjoy the ungodly sport of killing bulls. May the Lord forgive them.
On the positive side, it could change before open, but i doubt it. R !
Comment by Bert — May 30, 2012 @ 2:39 am
7 minutes after i wrote the above post, an European VIP said something positive & the
market started to turn around, so we have a chance my friends. R !
Comment by Bert — May 30, 2012 @ 3:08 am