After yesterday’s important move, Gold has traded in a range of $1,637 to $1,647 (the June high) so far today…as of 6:25 am Pacific, the yellow metal is up $2 an ounce at $1,641…Silver has gained another 12 cents to $29.45…Copper is a penny higher at $3.44…Crude Oil has lost 33 cents to $96.51 while the U.S. Dollar Index is up one-fifth of a point to 82.06…
Gold, at a time of seasonal strength, is on the edge of a significant breakout after being range-bound in choppy action on the daily chart for three months…volume needs to pick up some more in Gold, as well as in Silver, but it’s likely just a matter of time before both explode to the upside with traders/investors anticipating bold action from the European Central Bank next month and possibly from the Federal Reserve…
A bullish interpretation of Gold at the moment is supported by renewed strength in the euro…below is a 2.5-year weekly chart of the euro from John showing patterns that suggest a real reversal in the euro is underway…this will need some more time to play out, but there’s evidence we’re seeing more than just a bounce in the euro…note how the RSI(14) is rising from a double bottom at previous support…there are other technical factors as well that support a higher euro in the near future…
TSX Gold Index
The TSX Gold Index is looking a lot healthier from a technical standpoint these days, showing increased up momentum, and there seems to be little doubt that the Index put in an important bottom in mid-May at 266…the next major task for Gold Index is to clear a resistance band between 310 and 315…the Index, currently supported by rising 10 and 20-day moving averages, climbed 5 points yesterday to close at 306…a reversal to the upside in the 50 and 100-day moving averages appears quite possible by early September, within the next couple of weeks…below is an updated 6-month daily Gold Index chart from John…
Today’s Markets
Asian markets were modestly lower overnight…Japan’s exports slumped the most in six months in July as sales to a debt-ridden Europe and a sluggish China dropped…that gave investors reason to lock in some profits on the Nikkei which has been rallying strongly recently…China’s Shanghai Composite index fell 11 points to 2108, only a fraction above its lowest close since March, 2009…Reuters reported that Chinese steel mills have decided to default or defer shipment of up to 4 million tonnes of iron ore because of slumping prices which are at 32-month lows…European shares are weaker by as much as 1% this morning with cyclical stocks suffering due to the Japan export data and renewed global growth concerns…stock index futures in New York as of 6:25 am Pacific are pointing toward a slightly negative open on Wall Street…the S&P 500 touched highs yesterday not seen since May, 2008, and is up 3% this month…the minutes of the U.S. Federal Reserve’s most recent policy meeting are set for release later this morning…traders will be looking for clues on the Fed’s attitude toward more stimulus measures but all they may find is confusion…some Fed officials, including Chairman Ben Bernanke, have made it clear the Fed will need to weigh incoming data in order to make a decision on any new measures…Bernanke has said the Fed is ready to act if necessary, and it was expected he would signal the Fed’s intentions during its annual symposium at Jackson Hole at the end of this month just as he did two years ago…but now some Fed watchers believe Bernanke will have difficulty clearly stating the Fed’s view at Jackson Hole, and Fed officials will have to wait until the early September data, particularly the August employment report, to make a decision…
Venture Exchange
The Venture Exchange encountered resistance as expected at 1248 yesterday and finished the session up 10 points at 1239…a new CDNX uptrend is clearly in place on the charts but be patient for the breakout through the 1250 area…the rising 10 and 20-day moving averages (currently at 1215 and 1200, respectively) can be expected to provide strong support…
BHP Billiton Puts Project On Hold
BHP Billiton Ltd. (BHP, NYSE), the world’s biggest mining company, has put approvals for about $68 billion of projects on hold after second-half profit plunged 58% as metal prices declined and costs rose…net income was $5.5 billion for the six months ended June 30, from $13.1 billion a year ago, according to a calculation from Bloomberg confirmed by the Melbourne-based company…that beat the $3.5 billion median estimate of four analysts surveyed by Bloomberg…the mining giant says its plan to turn Olympic Dam, Australia’s most valuable discovered mineral deposit, into the world’s biggest open-pit mining operation has been derailed by a sharp rise in construction costs, coupled with a strong local currency and a fall in prices for copper and uranium…instead, BHP is looking at a less costly design for the mine, which under the scrapped scheme had promised to bring in billions in tax dollars and create thousands of jobs…BHP isn’t acting alone…big diversified mining companies have been tightening their focus on costs and reconsidering investment plans to shore up weaker cash flow…the world’s appetite for commodities continues, however, and the fact several large projects are being put on hold, and others are slow in coming together for various reasons, has to be bullish for prices…“We expect volatility in commodity markets to persist as temporary weakness in the manufacturing and construction sectors across all key markets is expected to weigh on market sentiment,” BHP said…“However, in the medium term we expect supportive economic policy and a broad growth bias, particularly in China, to lead to measured improvement in the external environment beginning in the first half of the 2013 financial year”…
Barclays – Bullish Outlook For Chinese Commodity Imports
Barclays Capital sees the glass half full and is looking for strong Chinese imports of commodities to continue…the bank describes year-on-year rises as “still robust” even though growth has slowed from the rapid rates early in the year…the most recent data show Copper net imports up 27% year-on-year with sharp gains for zinc and tin as well…corn imports were up 318% year-on-year, wheat 133%, soybeans 10%, oil 12% and platinum 102%…some pundits suggest the strength in imports, despite China’s slowing economy, is because commodities are being used to raise financing or to fill strategic stocks, rather than immediate consumption…”While we agree these factors have been important in some markets, especially Copper and, to some extent, Crude Oil and some agricultural commodities, we think it a mistake to attribute all of the recent strength to factors such as these,” Barclays stated…”Indeed, indicators of local demand collected directly from source or calculated independently of trade flows suggest that consumption levels still look very healthy…production of Copper-containing products rose by 7% year-over-year in July while (output of) aluminum-containing products was up by 23%…in oil, diesel demand was down, but gasoline demand grew 17% in July to hit an all-time high, jet fuel demand was up by 24% and residual fuel oil rose by 9%”… Barclays says “2012 is shaping up to be a much stronger year and we expect that trend to persist over the coming months”…
ATAC Resources (ATC, TSX-V) Chart
ATAC Resources (ATC, TSX-V) came out with impressive drill results yesterday from the Conrad and Isis East Zones at its Rackla Project in the Yukon (including 42.9 metres grading 18.44 g/t Au at Conrad), and the stock responded favorably by climbing 24 cents to $2.80 on one of the best volume days of the year…John sees some strong positives in the chart – below is a 15-month weekly chart that puts the bigger picture into perspective…
Great Panther Silver (GPR, TSX)
With Silver looking strong, there are numerous Silver stocks that are poised to move higher – not the least of which is producer Great Panther Silver (GPR, TSX-V) which we have been following regularly at BMR…GPR has been consolidating in a downsloping flag since early 2011…a convincing move on good volume through the $2.25 area would be a sure sign that GPR and Silver are ready to rock…below is a 2.5-year weekly chart from John…
Note: John, Jon and Terry do not hold positions in ATC or GPR.
RBW
Good support for RBW at 0.24…. That’s more like it..
Comment by Bert — August 22, 2012 @ 5:32 am
I agree with DB comment. HOW many shares does anon have. Geesh
Comment by dave — August 22, 2012 @ 5:36 am
RBW-180k bid at 24…is anon going to make him happy or will they make them pay for their shares?
Comment by db — August 22, 2012 @ 5:40 am
RBW will be going up today! +++ positve
Comment by Theodore — August 22, 2012 @ 5:43 am
No telling, level 2 changes constantly. At times, You see a bid like that and then its pulled. They get buyers to think they can’t get in lower and get the price up and then dump. At least its TD, and they usually do not play those games. We see how the day unfolds.
Comment by dave — August 22, 2012 @ 5:53 am
Richmont is doing well too.
Comment by Alexandre — August 22, 2012 @ 6:03 am
RBW
is it bad that no one wants to buy at the ask of .25? Also, Jon, when can we expect news on this puppy? i’m looking to make a truck load full of cash on this.
Jon, what would your own person estimate be for the share price by the end of September?
Thanks.
Comment by Steve — August 22, 2012 @ 6:07 am
new to this game, where do you see who is putting bids on rbw
Comment by wes — August 22, 2012 @ 6:15 am
Yesterday a blogger on SH said that he had been in contact with RBW IR person the day before who stated all going well, update out thursday. We shall see, remember drill permit news? PRG was a great trade. Results for goldquest have to be very good or that stock will get hit hard. DSL PP participants very interesting, they have powerful people now involved on their advisory board.Interesting times. richard l
Comment by richard l — August 22, 2012 @ 6:30 am
I was away & just got back, to find the support at 0.24 didn’t hold. I want
to state what i think is going on, but some may not want to read it, instead
i will state, come on thursday, when we are hoping to have an update or news,
whatever. R !
Comment by Bert — August 22, 2012 @ 8:01 am
There is no denying that we’ve had some significant dumping by anonymous these past few days and looks like this person is dead set at selling at 24 – 24.5.
BMR any comments asides from the fact that we had a similar situation in Jan/Feb before the stocked climbed another 30-40%.
Jon I think I speak for most of us when I say one’s gotta wonder what could possibly trigger the aggressive selling at such a critical time. Are they that uncertain about the prospects here?
Comment by alex — August 22, 2012 @ 8:08 am
You made a good point, Alex…..keep in mind there has been aggressive selling by ANON since January, yet the price trend has been up…….everyone was also worried back in May when ANON was selling at even 15 and 16 cents….ANON has been wrong all along….that’s my 2 cents’ worth…..at some point, probably soon, ANON will run out of paper and then all heck will break loose on this, and that’s when you’ll have the push thru .30 on the way to .50 as John’s charts are indicating…
Comment by Jon - BMR — August 22, 2012 @ 8:28 am
Another chance to scoop more RBW… someone’s dump is another person’s treasure… Yahoo!
Comment by Theodore — August 22, 2012 @ 8:40 am
Jon – BMR
any idea/thoughts as to why ANON been selling so much paper
Comment by ChartTrader — August 22, 2012 @ 8:48 am
Jon,
Are you planning to interview Frank Basa any time soon? I would love for you to specifically ask him:
1) What are GBB’s plans for 2013 (assuming the 2012 goals are met); and
2) What does he think about Goldquest’s (v.GQC) recent results from their drilling program, and will that affect the decisions he makes moving forward for GBB? In particular, I was intrigued by (Everton Resources CEO) Mr. Audet’s comment that was something to the effect of EVR’s deposit requires a MASSIVE drilling program to unlock its full potential. Now THAT is what I want to hear from management! If we juxtapose what EVR are getting ready to do with respect to drilling and compare that to GBB, there is a HUGE difference in approach. My question to Mr. Basa is WHY? The market wants him to drill GBB’s land claims “like Swiss cheese” (as you have said before), yet aside from last year’s 50,000 metre campaign, not much has happened. Please explain that to us shareholders?
Comment by Steven — August 22, 2012 @ 9:29 am
Steven
I have spoken to the management at gbb recently. Sgc were on holiday so they were unable to release the numerous results that are complete. They are no back so things are moving along. They are looking to mine nearby so that there will be no dilution for the foreseeable future. Their tax gold refund from the Quebec government has been received so they are cashed up and ready to grow into a self-finanacing company. They will be releasing results in the very near future and their re and 2nd 43-101 in the fall sometime. They have been very busy doing what they should do….talking to investors globally, setting up mining facilities for the gold that they definitely have and preparing reports to release.
glta
Comment by Natalie — August 22, 2012 @ 10:57 am
Call me anything you like, but you can’t deny the fact that
i had GQC pegged right. Hope the holders got out with a good
profit. R !
Comment by Bert — August 22, 2012 @ 11:53 am
GQC’s slide is expected and luckily, I sold all of them at $1.90. $2 seems to be the top of the hill at this point and it may continue to adjust after so much accumulation for the few weeks without a real correction. RBW is set ready to go higher and I feel comfortable with over 600,000 shares changed hands. I am not losing any confidence in this one as I picked up some today. GBB …. not to mention now as I will not touch it. Keeping 10,000 – 20,000 shares will not do any harm and even myself, I have a small portfolio at 8.5 cents. EVR seems to be a good one but I have no holdings in this one.
Comment by Theodore — August 22, 2012 @ 12:40 pm
jon,i take it gqc has dropped because of the deal with dundee,if you could enlighten us on the day please,thx.do you see it dropping more??
Comment by tom — August 22, 2012 @ 12:42 pm
or was there a major selloff by someone,or am i missing something???gqc.
Comment by tom — August 22, 2012 @ 12:47 pm
excercised option,its ok i get it,explain anyway,should go rite back up shortly i take it.thx.
Comment by tom — August 22, 2012 @ 2:00 pm
wes,along the right side there is buyer/seller,put your curser on the # ie 79 cibc.
Comment by tom — August 22, 2012 @ 2:06 pm
Today was an example of how fast one can lose his/her cash. GQC may bounce
back, but no doubt, it did give many an awful feeling. Even a market order
could have gotten confused on the way down. I would suggest, even the
market maker was bewildered. It left me feeling contented that my money
wasn’t out there somewhere, bouncing around. Seriously, it must be a reminder,
that one can’t go wrong by taking a profit. I have written about RBW in a
positive & not so positive manner, but i have to remind myself, every once
in awhile, that one would be very fortunate, in order to catch a stock,
that would be rewarding, over a short period of time. It’s a waiting game,
we usually buy too soon, but those with patience will be rewarded, mark my
word. Be reminded it will have at least one run. R !
Comment by Bert — August 22, 2012 @ 3:21 pm
Bert, I fully agree with your comments. I will never put 100% of my liquid cash into stock. 50 – 70% most of the time and I also do day trades. RBW is purely a waiting game or testing your patience… remember SFF couple of years ago … it was at 23+ cents and suddenly, it jumped to 70+ cents in a few days. We were waiting for the news and it did come out late … after a couple of months after the long wait. GQC will bounce back and forth a little bite but my guess and volume will slow down , it will stay around $1.50 when the daily high/low difference is less than 5 cents, currently 8 – 10+%. Day trades will be best for GQC and may not even good for short term holding. You can easily make daily profit of $500 – $800 with $15,000 value. Of course, you need to enter at the right price. SFF again, 12.5 cents, I will add some to my portfolio at this bargain price… Let us see, who will be the star for tomorrow?
Comment by Theodore — August 22, 2012 @ 5:31 pm
Bert – I picked up on something to on Monday reference RBW. I will not comment just yet because no one would believe me either. So I will close for the night by reminding the board to play detective work (I am a detective in the states) and I use that key word – anticipate what is going on. Look at everything on a daily basis. This is not bashing RBW as I own at .16 and .17. I sold my .23 position on Monday when I observed and anticipated what was going on. I will spell it out when the time is right.
Comment by dave — August 22, 2012 @ 8:52 pm
I’d say you’ll be the star theo
Comment by OldMan — August 23, 2012 @ 2:23 am