Gold is weaker this morning in advance of today’s important Fed decision…as of 5:35 am Pacific, the yellow metal is down $14 an ounce at $1,604…Silver is 28 cents lower at $28.14…Copper is 2 pennies lower at $3.42…Crude Oil is up 12 cents at 84.15 while the U.S. Dollar Index is off one-fifth of a point at 81.28…
What Will The Fed Do Today?
The consensus among market watchers is that the Fed will extend Operation Twist which is set to expire at the end of this month…the equity and precious metals markets recently have been factoring in some sort of action from the Fed today, so any inaction – mere words – will produce a negative immediate response from the markets…in terms of the potential for another full-blown QE program, this seems unlikely at this particular time – Bernanke will likely want to keep his powder dry in the event circumstances in the euro zone take a turn for the worse over the summer…
Europe won support from world leaders yesterday for an ambitious but slow-moving overhaul of the euro zone, even as pressure built in financial markets for quicker solutions to its debt crisis that threatens the world economy…two key policymaker meetings are set for Friday…euro zone officials need to turn words into action and clearly demonstrate to the market that progress is being made in key areas such as a banking union, the fiscal pact, and regulation…
Today’s Markets
Asian markets were generally positive overnight while European shares are mostly in the green so far today…stock index futures in New York as of 5:40 am Pacific are pointing toward a slightly positive open on Wall Street…
Euro Chart
The euro has been gaining momentum recently which is both Gold and stock market-positive…the euro has broken above a resistance band (it’s currently trading at 1.271) but confirmation is required today…there’s more resistance just above 128…the major euro breakdown in May produced very oversold conditions and corresponded with the lows (which will hopefully hold) in the equity markets…
Lumina Copper (LCC, TSX-V) And Cascadero Copper (CCD, TSX-V)
We suggest readers carefully review recent news releases from both Lumina Copper (LCC, TSX-V) and Cascadero Copper (CCD, TSX-V)…Lumina, of course, has shot up quite nicely as we suspected it would after its news last Friday (the company has put itself on the auction block and, reading between the lines, has no doubt received some “expressions of interest”)…Lumina holds the world class Taca Taca Cu-Au-Mo deposit in northwestern Argentina, part of which adjoins ground held by Cascadero’s 50%-owned Argentine subsidiary…
What’s particularly interesting – and we don’t believe the market has caught on to this yet – is that two very good and important drill holes that Lumina reported June 6 250 metres northwest of its current 43-101 mineral resource appear to be very close – perhaps even a stone’s throw – from Cascadero’s Francisco II Property (Argentine subsidiary)…RC-19 intersected 222 m of 0.83% CuEq while RC-23 delivered 152 m of 0.83% CuEq…this new discovery zone, which includes high-grade supergene copper mineralization, has so far been defined over an area of 600 m east-west and 600 m north-south very close to the Francisco II boundary…
Now, as we continue to “connect the dots”, below are direct quotes from Cascadero’s June 15 news release:
“The Francisco II property adjoins Taca Taca immediately to its west and is primarily pediment covered with few outcrops…the MMI sampling was focused on this area as it is close to recent Lumina drill holes and to the common property boundary…this area is also important as it may be on a northwestern-trending channel that may have transported exotic copper from the Taca Taca deposit to the graben during the leaching process…
“The company believes that Taca Taca porphyry-related mineralization may exist to the west and northwest of Lumina Copper’s and Salta’s property boundaries…in addition, historical sampling and alteration evidence suggests that the Salta properties have high potential for stand-alone porphyry Cu-Mo-Au, exotic copper, epithermal-style Gold and IOCG (iron oxide, copper, Gold) mineralization”…
The “big picture” significance of the above is that Cascadero’s Francisco II Property could be an extension of the Taca Taca system and therefore may figure prominently in Lumina’s plans at the moment or those of another company that may wish to acquire Lumina…Cascadero closed yesterday at 14 cents…
Argex Mining (RGX, TSX-V) Chart Update
Last Friday, John pointed out some very bullish patterns in the chart for Argex Mining (RGX, TSX-V) which then proceeded to climb 13 cents Monday and another 11 cents yesterday on strong volume for a gain of 33% over just two trading sessions…below is an updated chart after yesterday’s activity, showing how the stock sliced through resistance in the mid-80’s – an area that now becomes new support…RGX closed at 97 cents yesterday…
Cap-Ex Ventures (CEV, TSX-V)
CEV continues to work on a world class iron ore project in western Labrador, though the stock has shown its vulnerability over the last few months to the risks of a global economic slowdown…below is an updated chart for CEV which closed up a nickel yesterday at 45 cents after touching a yearly low of 38.5 cents last week…
Note: John, Jon and Terry do not hold positions in RGX or CEV.
There we are 51c on …CEV. Very early but looks like a reversal is in progress…
Comment by db — June 20, 2012 @ 5:45 am
Attn: BMR
Wondering why GBB going so flat even after yesterday’s good result?
Comment by Eric Benson — June 20, 2012 @ 6:28 am
My understanding is the holes to the north which r due to report any day are the game changer for gbb… these r the holes that will help tell the story of just how massive the deposit is… since it is beside osisko and similar to osisko you can search old charts to see that it took 2/ 43 -1010s and a pea with some deep holes to start the enormous run…Hopefully these holes that r to be reported in the immediate future will give alot of info and will be the trigger for the run of this huge mine.
Comment by Natalie — June 20, 2012 @ 6:41 am
Is RBW going to retest $0.10? Bleeding more with each passing day…who are these moronic sellers who have the urge to sell their measly 20k shares at $0.15? God I hope these idiots regret every share they sell when this hits $1.00 – I will get no better satisfaction.
Jon are these retail sellers or sheer price manipulation?
Comment by Alex — June 20, 2012 @ 11:47 am
RBW – only 7 trades so far on CDNX, I just see it as an opportunity and the second largest buy today was mine 🙂
Comment by Andrew — June 20, 2012 @ 11:55 am
Why ask Jon anything he has goT this call so wrong ,im an idiot for listening to bmr,he gonna mention words like imminent,permits,patience,warrants & more BS.This was your big spec play at beggining of the year,anyways thanks for the big loss Bmr oh ya and he gonna mention July should be better month.
Comment by Gerry — June 20, 2012 @ 12:11 pm
Gerry – look at the other juniors, at least RBW has held up this year. I don’t know your entry cost but when BMR brought it to our attention I’m sure it was around .15
In my portfolio of juniors it’s the best performing one and I’m even, so I only see upside even if the gap closes at .135 and I kind of hope it does tomorrow. 🙂 My only critiscms of RBW are its venture with VGN, the IR guy that was hired and now I’m assuming fired because Pierre is first rate and the appalling facebook page which has now been removed. I’m in RBW for its West Kootenay’s holdings, I don’t care about Nevada.
Comment by Andrew — June 20, 2012 @ 12:20 pm
They also pumped it hard in the mid 0.20s shame on them like they didnt know,and David we following the rainbow what next he gonna show us that stupid rock again that he carry everywhere,June we watched the snow melt & the shares tank good job Rainbow as for Jewel ridge is for just a flow of NR to keep the investor intrested and the graphite so late to the game,bad job management im not a happy shareholder plain and simple they HAVE DONE NOTHING maybe they will fly in on their backpack drill jetpack and save the day.
Comment by Gerry — June 20, 2012 @ 1:48 pm
Gerry, I hear you! Its looking better now that they may drill the International first, and starting in a couple of weeks. Maybe there will be some visuals from that before drill assays. Publicity from this weekend’s visit/tour may also help. They screwed up with facebook – could have reached a lot investors if used correctly. Take a look at Greenlight, excellent, everything current so its an almost instant feed.
Comment by Andrew — June 20, 2012 @ 2:10 pm
The secret to making a lot of money is buying good stocks when the everyone wants to sell and selling when everyone wants to buy.Always being the good guy. When the market turns fortunes will be made on good junior stocks.
Comment by gil — June 20, 2012 @ 3:36 pm
Once we start seeing International numbers RBW will start moving. We may see a climb in SP with news of drills turning but I dont feel there will be a real jump until assays start coming back. Until then, be patient and buy what you can, or sell and come back in mid summer…
Comment by db — June 20, 2012 @ 4:31 pm
I have nothing to worry about in RBW’s drop… my buy lot still at 15 cents and I am collecting more. The dumping is weak and I don’t think there will be a lot to be dumped. AOX .. my buy lot is still at 25 cents and I got some today but not reaching my 50,000 shares target.
Comment by Theodore — June 20, 2012 @ 6:19 pm
Theo- There is a backstop at 25c by the Aussie group rumoured to have JV deal on table with Andover (Rio has option to match or better), so youve got your bid at a perfect spot. My average is 27.5 but not concerned at all as I know where this will be heading in the near future…
Comment by db — June 20, 2012 @ 6:37 pm