Gold is holding quite steady after Friday’s huge gains…as of 5:50 am Pacific, the yellow metal is down $8 an ounce at $1,618…it has traded as high as $1,630 and as low as $1,614…Silver is 35 cents lower at $28.33…Copper is flat at $3.34…Crude Oil, at an 8-month low, is off another 84 cents a barrel to $82.39 while the U.S. Dollar Index is down one-quarter of a point to 82.77…
Gold’s nearly $100 reversal since Friday is a clear indication that another round of quantitative easing from the Fed could be just around the corner (the Fed meets June 19-20 and will want to act now, not a couple of months before the U.S. elections) along with a resumption of the ECB’s LTRO’s…all signs are that the global economy is weakening, and at a very bad time for the euro zone in particular…the ECB meets on Wednesday…on Thursday, Feds Chairman Ben Bernanke testifies on the economy before a Congressional committee…
Euro Twilight Zone
The euro zone is likely to come up with a plan for deeper economic integration by the end of the year, after agreeing on what elements it should include and how to achieve it in June, the chairman of European Union leaders’ meetings said this morning…Herman Van Rompuy told a news conference in St Petersburg, Russia, that by the next summit of EU leaders at the end of June he and three other top EU officials would present “the main building blocks for this deepened economic and monetary union” and “a working method to achieve this objective”…
Of course, in theory, a more integrated European Union may seem sensible and achievable but what’s the reality of that occurring in a short time frame when a very imperfect EU was created in the first place?…having one government with its act together is a challenge…can 17 governments actually pull something together?…that certainly remains to be seen…one thing is for sure, however…the ECB is going to have to step in buy time for any plan of deeper euro zone integration, and that’s going to take the biggest fire hose the world has ever seen…
Today’s Markets
Asian markets were down sharply overnight, reacting to Friday’s sell-off on Wall Street, while European shares this morning have rebounded off their lows…stock index futures in New York as of 5:50 am Pacific are pointing toward a flat open on Wall Street…the Dow has declined in 18 out of the last 22 sessions, falling more than 1,000 points during that time, with Friday being the worst day of the year so far with a nearly 300-point drop…
The Venture Exchange, on the other hand, has outperformed the broader markets over the past couple of weeks which is a positive sign…technically, it’ll be important for the Venture this week to gain some more traction and climb back above 1300…
GoldQuest BMR Interview
GoldQuest Mining’s (GQC, TSX-V) Bill Fisher has agreed to an interview with BMR this afternoon at the Vancouver Resource Show…it was standing-room only at the GQC 10-minute presentation yesterday as Fisher reviewed the company’s discovery hole at its Las Tres Palmas Project in the Dominican Republic…drilling is expected to resume tomorrow…institutions continue to gobble up GoldQuest stock and could push it even higher today after Friday’s 74-cent close…the significance of this discovery was quite evident in the GQC financing announced last week which was a bought deal with no warrants, something almost unheard of these days…
We’re looking forward to the conversation later today with Fisher who was last interviewed by BMR just over a year ago…
The interview with Fisher is certainly a coup for BMR, but it seems we’ve been “scooped” by another newsletter this morning with regard to Rainbow Resources (RBW, TSX-V) as Rainbow President David W. Johnston has confirmed with the Junior Gold Report that the company has discovered graphitic outcrops on both of its large claim blocks in the Valhalla Metamoprhic Complex…we do expect that regional graphite play to heat up over the summer, especially if Eagle Graphite were to secure a deal to go public or if a private equity fund steps in which is rumored to be possible…meanwhile, as Rainbow disclosed Friday, drill permits for its Gold Viking and International properties are “imminent”…the turning of the drill could really get things going with RBW as the month progresses…
Chart Updates – GR, ATC, KAM, AZ and GIX
John has chart updates this morning on five quality situations that have bounced significantly off their mid-May lows – Greenlight Resources (GR, TSX-V), ATAC Resources (ATC, TSX-V), Kaminak Gold (KAM, TSX-V), Armistice Resources (AZ, TSX) and Geologix Explorations (GIX, TSX)…we particularly like Greenlight which has performed well this year and has a market cap of under $5 million after closing Friday at 13 cents…the company, with exploration projects in Atlantic Canada, is led by Chris Anderson who we consider to be a rising star in the industry….he was seen yesterday at the Vancouver Resource Show in discussions with John Kaiser and Brent Cook…
To aid our readers’ due diligence efforts, below are charts for GR, ATC, KAM, AZ and GIX…
Greenlight Resources (GR, TSX-V)
ATAC Resources (ATC, TSX-V)
Kaminak Gold (KAM, TSX-V)
Armistice Resources (AZ, TSX)
Geologix Explorations (GIX, TSX)
BMR – It seems we’ve been “scooped” by another newsletter this morning with regard to Rainbow Resources (RBW, TSX-V) as Rainbow President David W. Johnston has confirmed with the Junior Gold Report that the company has discovered graphitic outcrops on both of its large claim blocks in the Valhalla Metamoprhic Complex
Bert – I will call the above noted information as a black mark against RBW, Shame !!! No doubt, it’s
important they get the news out with whomever, but they should not forget BMR, who have been with
them since the beginning. So much for loyalty Mr. Johnston, it shows you forget your friends quite
easily…
Comment by Bert — June 4, 2012 @ 6:09 am
Not a big deal, Bert….no offence taken….it’s good to see others noticing RBW…..the reality is, we’re just a little fish in the pond…
Comment by Jon - BMR — June 4, 2012 @ 6:23 am
Jon
As for BMR being just a little fish in the pond, may i refer Mr. Johnston to the Bible,
the story of the Shepherd, who left his flock to look for one loss sheep. It takes away
from the positive feeling i had for Mr. Johnston, et al. I hereby downgrade Rainbow from
an A pos. to a B neg.
Comment by Bert — June 4, 2012 @ 6:33 am
Johnston is a class act, and the Shepherd certainly hasn’t “left his flock”…I hope he does a lot more interviews besides just BMR, and I know he’ll always be available to us…..there are bigger issues in the world, Bert, for you (and me) to keep focused on!…anyway, I’m looking fwd to my interview with Bill Fisher today….should be interesting. He’s very fired up about Romero.
Comment by Jon - BMR — June 4, 2012 @ 6:53 am
The more people or newsletter writers covering RBW the better for RBW and hopefully us shareholders too… Get the story out there…
Comment by Greg — June 4, 2012 @ 8:20 am
gbb.v has been holding up well and moving up. Management is in Europe presenting this week. Hopefully good news upon their return and lots of european buying to begin. I suspect when drill results are released it will move up fast. lots of blue sky potential at a bargain price…and of course osisko right next door looking to buy out!!!
glta
Comment by Natalie — June 4, 2012 @ 8:26 am
Greg
I fully agree with getting the news out, but because BMR were the first & only, to bring RBW
forward & have shown their full support in their musings, i feel they should have been given
the first chance to bring ”’breaking news”’ forward. The key words being ”’breaking news”’.
If every soul on this board disagrees with my line of thinking, i would not waver one bit from
what i have posted. Such a minor matter for some, but a more serious matter for me. His
trustworthy has diminished in my mind. Have a good day. R !
Comment by Bert — June 4, 2012 @ 8:40 am
Correction — In last line of previous post first word should read ”trustworthiness”.
Comment by Bert — June 4, 2012 @ 8:42 am
They have arrested the guy who mailed the body parts to MPs’ in Ottawa. He was telling
everyone how to commit a crime & how not to get caught. Hello !!!
Comment by Bert — June 4, 2012 @ 9:46 am
Bert, so he’s no longer footloose and fancy free?
Comment by fred — June 4, 2012 @ 10:55 am
Another psycho removed from the street….
Comment by Jon - BMR — June 4, 2012 @ 11:24 am
many more pyschos to be aware of…. but not from NFLD!! Bert – I am inclined to agree with you a bit on RBW… is he tooooo anxious to promote his agenda or story that he forgets who asked first??? there is cred associated with getting the scoop first… not sure I would be as harsh on him … but there is cause for a bit of …. hmmmmmmm:)
honesty and integrity is paramount… hard to get so easy to lose!!
On another note.. the CDNX bumped its head on the 10 day MA…. can John indicate what or where that leaves us after rising above it only to drown in it again.. we are under all averages again…. thx in advance
Comment by Jeremy — June 4, 2012 @ 11:47 am
for John … will seprate the two msgs …
On another note.. the CDNX bumped its head on the 10 day MA…. can John indicate what or where that leaves us after rising above it only to drown in it again.. we are under all averages again…. thx in advance
Comment by Jeremy — June 4, 2012 @ 2:55 pm
Hi Jeremy
The use of Moving Averages in TA is a very personal matter. There is nothing magical about any of them, it is all about how you interpret them.IMHO.
I will only use an MA when it serves a definite purpose just as I would any other indicator.
With any MA I look to see if it has proven itself as a support or resistance in the past.
I will produce a chart showing the Daily CDNX with the Daily SMA(10) and the Daily EMA(20), (the one I like and I will show you why), to show the difference.
I suggest you select your own Moving Average that works for you not one suggested by someone else. The same MA is not always interpreted the same way by different people.
For where it leaves us, I suggest you look at the next 15 Daily Session Chart that is posted. That should explain it.
Hope this helps.
Comment by John - BMR — June 4, 2012 @ 3:10 pm
Was the GQC interview called off?
Comment by George Wohanka — June 4, 2012 @ 6:02 pm
What does BMR or the board feel about the last few trading days and recent RE of CUU?
Comment by db — June 4, 2012 @ 6:08 pm
thx John .. not sure I totally get yet.. but will re-read in the morning:) thx mate!!
Comment by Jeremy — June 4, 2012 @ 7:05 pm
Not at all, George, had a great interview with Bill Fisher this afternoon, nearly 30 minutes, but these things can’t be produced instantly on the site and I was busy for 5 straight hours after the interview with other discussions at the Resource Show….I hope to have a few excerpts of the interview in text form in the morning and the full audio version posted by the end of the day Tuesday if all goes well….
Comment by Jon - BMR — June 4, 2012 @ 7:11 pm
Jon, thanks much. Really looking forward to your interview with Fisher.
BMR has done a great job in following GoldQuest.
Comment by George Wohanka — June 4, 2012 @ 7:22 pm