BullMarketRun.com

Gold is rebounding after being under some weak selling pressure this morning…as of 7:45 am Pacific, bullion is now off just $1 an ounce at $1,728…Silver is 16 cents higher at $32.58…Copper is unchanged at $3.46…Crude Oil is down 19 cents at $85.38 while the U.S. Dollar Index continues to climb within a resistance band and is currently up slightly at 81.12…

When you see headlines like this on CNBC, “Marc Faber: Prepare For A Massive Market Meltdown“, you know it’s the right time to actually be a buyer of stocks…”The markets are going into meltdown soon, so expect stocks to lose 20% of their value,” Faber stated…hmm, really?…investors have to understand that it’s quite a profitable business to peddle doom and gloom…

The behavior of the Venture Exchange recently – it’s always a leading indicator – certainly doesn’t suggest that stocks across the board are about to go into a meltdown as John has shown in recent charts (in fact, just the opposite is true)…in addition, of course, the Federal Reserve won’t allow a market meltdown…they are the greatest market manipulators of all and the Fed will do all that it can to ensure the markets remain healthy and above key levels…third, the major markets have rising and supporting 200 and 300-day moving averages which they’re trading within right now and very close to the 300-day which provided excellent support in the spring when the world was also about to come to an end according to Marc Faber and other doom-and-gloomers…the market has experienced a very normal pullback in recent weeks which has likely mostly run its course…

We also take comfort in how the CRB Index is performing, although it has pulled back significantly…in August, the CRB Index broke out of a downsloping flag which was a very bullish development…it met resistance around 320 and since then it has completed a normal retracement back down to the flag where there is strong support…we expect that support to hold, especially considering the current position of the Slow Stochastics which is at its most oversold point in the last 2.5 years…

Today’s Markets

Most Asian markets were down significantly overnight with China’s Shanghai Index falling 31 points to 2048 as it continues to have difficulty gaining traction…European shares are finishing the day down slightly (a German sentiment survey came in well below forecasts) while North American markets are mixed…as of 7:45 am Pacific, the Dow is up 18 points while the TSX is off 29 points…the Venture Exchange has declined 4 points on light volume to 1300…

Two of the top five volume leaders on the Venture yesterday were Fission Energy Corp. (FIS, TSX-V) and Robex Resources (RBX, TSX-V)…interestingly, both are right at the top of their downtrend lines in place since early 2011…Fision and joint-venture partner Alpha Minerals Inc. (AMW, TSX-V) have reported a potential high-grade uranium deposit discovery in the southwest portion of Saskatchewan’s Athabasca Basin…

Below is a 2.5-year weekly chart for FIS which shows what investors really need to be watching for – a confirmed breakout above the down trendline…as John mentions, nothing else matters…as of 7:45 am Pacific, FIS is off a nickel at 57 cents…

Robex Resources (RBX, TSX-V), which has a lot of shares outstanding, is also up against its downtrend line but has been building momentum recently after securing $15 in financing to allow for construction of a Gold-producing plant at its Nampali site in Mali, a country that obviously involves some political risk…however, Robex is confident it can begin producing at Nampali by the third quarter of next year (the deposit contains 1.5 million ounces of indicated and inferred NI-43-101 resources, please check their news releases and web site for a breakdown of this)…the key resistance level for RBX is 17 cents as John shows in this 2.5-year weekly chart…as of 7:45 am Pacific, RBX is down a penny at 15 cents…

U.S. Predicted To Become World’s Largest Oil Producer By 2020

A shale-oil boom (thanks to policies, by the way, initiated by the Bush Administration) will thrust the U.S. ahead of Saudi Arabia as the world’s largest oil producer by 2020, a radical shift that could profoundly transform not just the world’s energy supplies but also its geopolitics, the International Energy Agency said yesterday…in its closely watched annual World Energy Outlook, the IEA, which advises industrialized nations on their energy policies, said the global energy map “is being redrawn by the resurgence in oil and gas production in the United States”…the assessment, released yesterday, contrasts with last year, when it envisioned Russia and Saudi Arabia vying for the top position…”By around 2020, the United States is projected to become the largest global oil producer” and to overtake Saudi Arabia for a time, the agency said…”The result is a continued fall in U.S. oil imports [currently at 20% of its needs] to the extent that North America becomes a net oil exporter around 2030″…this shift will be driven primarily by the faster-than-expected development of hydrocarbon resources locked in shale and other tight rock formations that have just started to be unlocked by a new combination of two technologies: hydraulic fracturing and horizontal drilling…the IEA’s projections show U.S. oil production peaking in 2020 at 11.1 million barrels a day, up from 8.1 million barrels a day in 2011…within a decade, the IEA forecasts that U.S. oil imports will drop by more than half to just four million barrels a day, from 10 million barrels a day currently…much of this decline will be because of higher domestic production, but efforts to improve energy efficiency in the transport sector will also prove significant, the IEA said…

Uncertainty At Record Level Among U.S. Small Business Owners

American politicians of all stripes need to get the message which is to deal with the “fiscal cliff” issue and bring more certainty to the business and regulatory environment…the National Federation of Independent Business said its optimism index in a survey conducted before the presidential election found that the percentage of owners uncertain about whether business conditions would be better or worse in six months reached a record high of 23%…this actually eclipsed the pre-recession record of 15% reached during the Carter Administration…

Greece – Throw Them Out Of The Euro Zone

A clash between Greece’s international lenders over how the stricken country where the euro zone debt crisis began can bring its debts down to a sustainable level has reignited fears that the crisis could flare up anew…the International Monetary Fund and euro zone officials yesterday failed to agree on a long-term plan to cut Greece’s debt, preventing the release of immediate aid to Athens and pushing the euro to a 2-month low vs. the greenback…meanwhile, as unpalatable as it seems to euro zone policymakers, a sizeable reduction in Greece’s debt load is necessary to make the country’s debt sustainable in the long-term, according to a new report from Goldman Sachs…after investigating Greece’s debt sustainability, researchers at the bank have concluded that to reach the 120% debt-to-GDP target set by the IMF, an official sector restructuring of Greece’s debt, worth over 80 billion euros, was necessary…the authors of the report, economists Themistoklis Fiotakis, Lasse Holboell Nielsen and Antoine Demongeot, note that the IMF’s target is “unlikely” without such a “drastic debt stock reduction”… “To increase the likelihood that the Greek debt-to-GDP ratio approaches its 120% by 2020 target under realistic assumptions, a much more drastic debt stock reduction (possibly north of 80 billion euros in total) will be required,” the report states…