Gold broke above its 200-day moving average (SMA) at $1,304 for the first time in more than a year overnight…as of 6:40 am Pacific, bullion is up $15 an ounce at $1,318…Silver has cleared resistance at $20.50…it’s up 75 cents at $21.24…Copper is 2 cents higher at $3.26…Crude Oil is off 64 cents to $99.72 while the U.S. Dollar Index is down one-tenth of a point to 80.20…
According to Tom Fitzpatrick, an analyst at Citigroup’s technical research unit, CitiFX, Gold could get a pick-me-up from a “bullish double bottom between June and December last year,” Reuters reported. “We fully expect that Gold has the potential to once again test the neckline of a double bottom which stands at $1,434 an ounce,” Fitzpatrick said.
Several factors have been helping Gold recently including continued strong demand out of China, bullish technical signals and some short-covering…meanwhile, recent U.S. economic data, including disappointing jobs growth, has hurt the greenback which in turn is also boosting Gold’s appeal…technically, the U.S. Dollar Index appears poised to test critical support at 79…comments from newly instated Federal Reserve Chair Janet Yellen indicate that the Fed will continue its accommodative monetary policy…the Gold price had already “baked in” the start of tapering before it was announced December 18…
Today’s Markets
Asia
China’s benchmark Shanghai Composite rebounded to approach Tuesday’s one-month high of 2122 after breaking its five-day winning streak yesterday…the Index closed 17 points higher overnight to finish the week at 2116…China’s consumer inflation rate held steady at 2.5% in January as beef and vegetable prices rose, China’s National Bureau of Statistics reported today…it was slightly above projections of a 2.3% rise in separate surveys from The WSJ and Reuters…producer prices, however, fell for the 23rd straight month…Japan’s Nikkei average bucked the trend in Asia, slipping 222 points or 1.5% to close at 14313…
Europe
European markets are mostly modestly higher in late trading overseas…data released just a short while ago showed the euro zone economy grew faster than expected in the fourth quarter of 2013…official figures published by Europe’s statistics agency, Eurostat, revealed the economy had expanded by 0.3% over the period compared with the previous quarter, above analyst forecasts of 0.2%…earlier today it was reported that Germany and France, Europe’s two biggest economies, posted better than expected growth in the fourth quarter, reinforcing hopes of a steady post-crisis recovery in the euro zone…
North Ameria
The Dow is down 21 points as of 6:40 am Pacific…the TSX is 29 points higher while the Venture has added 5 points to 991, about a dozen points below its 300-day moving average (SMA)…
Venture Confirmed Breakout
After numerous attempts going back to the second quarter of last year, the Venture has finally staged a confirmed breakout above stiff resistance in the 970’s which obviously now becomes rock-solid support…below is a 6-month daily chart from John that shows how the recent 5% correction was a healthy pullback, unwinding an overbought RSI(14) condition and laying the foundation for a strong move on higher volume through this critical resistance…
In a detailed Week In Review tomorrow, we’ll take a look at just how high the Venture could climb in 2014…the Index’s 200-day moving average (SMA) is now reversing to the upside, so wave goodbye to a vicious bear market that wiped 65% off the value of the Venture between early March 2011 and late June 2013…this reversal started in October last year when the Index, as we noted at the time, broke above a long-term downtrend line…interestingly, a month earlier, the U.S. Dollar Index fell below a long-term uptrend line…
CDNX 6-Month Daily Chart
CRB Index Updated Chart
The breakout in the Venture coincides with bullish technical behavior in the CRB Index which held critical support and has now broken above a downtrend line…check out this 20-year monthly chart from John…clearly, there is increasing up momentum in the CRB Index and that’s powerful supporting evidence for the start of a fresh bullish phase for the Venture…
Probe Mines Ltd. (PRB, TSX-V)
Probe Mines Ltd. (PRB, TSX-V) has had a great week, surging to a new all-time high after more outstanding drill results from its multi-million ounce Borden Lake Gold Project in northern Ontario…this has been one of the best exploration stories in the country over the last year, but many investors missed it simply because they weren’t paying attention…fortunes are born during bear markets when the masses walk away…
Below is an updated 2.5-year weekly PRB chart – the next measured resistance is around $4.25 after yesterday’s strong push through the $3 level…
More Activity In The Sheslay Valley
Alix Resources Corp. (AIX, TSX-V) announced this morning that it has more than doubled its land position in the Sheslay Valley, acquiring claims east of and contiguous to Teck Resources’ (TCK.B, TSX) 600 sq. km Eagle Project which adjoins the southern boundary of Garibaldi Resources’ (GGI, TSX-V) Grizzly Project…Alix now controls nearly 50 sq. km in the Sheslay region, putting it fifth in total holdings among juniors behind Garibaldi, Prosper Gold Corp. (PGX, TSX-V), Romios Gold Resources Inc. (RG, TSX-V) and, of course, Doubleview Capital Corp. (DBV, TSX-V) which recently announced a drilling discovery at its Hat Property…Sheslay Valley claim values are obviously going way up in price – terms of the deal for the Halt Property that Alix acquired from an arm’s-length vendor are $200,000 and two million shares over three years for a 100% interest, less a 1% NSR that can be purchased at the company’s option for $1 million…we’ll have more on the Sheslay Valley situation over the weekend…
High North Resources Ltd. (HN, TSX-V)
Quality energy plays on the Venture have been hot, and one excellent example is High North Resources Ltd. (HN, TSX-V) which has doubled in the last month…the company has started to receive revenue from its two Montney horizontal wells which were flowing with combined preliminary rates exceeding 350 barrels of oil per day over a seven-day period as reported by HN February 5…
Below is a 14-month weekly HN chart…High North has broken out after consolidating within a horizontal flag…it’s up 3 cents at 63 cents after the first 10 minutes of trading…as always, perform your own due diligence…
Canada Carbon Inc. (CCB, TSX-V) Updated Chart
Note: John and Jon both hold share positions in GGI and DBV. Jon also holds a share position in PGX.
To my eastern Buddy Bert – your generosity is only outdone by your wit and humor!!:) I will come bearing gas:)
Nice expose:)
Comment by Jeremy — February 14, 2014 @ 7:48 am
In trying to be helpful, i will bring forward
a scattered stock, that i feel will do well in
2014. Any stock brought forward, please be advisded
that i have placed my money to back up my mouth, i
have 50K shares of PRG.v. BRM had a glowing writeup
recently on GQC, which has 148 million shares o/s,
as opposed to PRG, which has 24 million net shares
o/s. To continue, i want to state that PRG are not
only in Mexico, but are near GQC in the Dominican
Republic. They are ready to go after receiving all
necessary permits, to do whatever is necessary. I
don’t expect that i will influence anyone, but it
would be nice if later this year, i can state that
i told you so. PRG trading today at 0.12/0.125. R !
Comment by Bert — February 14, 2014 @ 8:19 am
PS v.PRG
Eric Coffin is one of the founders of that company. R !
Comment by Bert — February 14, 2014 @ 8:25 am
Thanks Bert,i also own PRG….just at break even point..was thinking about selling and moving on, but think i will keep it!!
Comment by Greg J. — February 14, 2014 @ 9:23 am
Greg J
I’m not one to give advice, but in this case, it will be
exception to the rule. PRG is only now getting started,
they were delayed for an extended period of time, waiting
for permits, because of a change in Government Officials in
that department…Besides PRG doing their thing, GQC next door,
are as i speak, preparing a PEA, so i would not sell now. R !
Comment by Bert — February 14, 2014 @ 10:00 am
VGN to buy back 4 mil shares to help increase the share price because management feels the company is undervalued. BMR, your thoughts? Not to sure this will help increase the stock price at all. It’ll just increase Tony’s/managements company share value, really.
Comment by Chris — February 14, 2014 @ 1:31 pm
Here’s the NR — Any company buying back shares can’t hurt.
Greencastle to Conduct Normal Course Issuer Bid
TORONTO, ONTARIO–(Marketwired – Feb. 14, 2014) – Greencastle Resources Ltd. (the “Company”) (TSX VENTURE:VGN) wishes to announce that, subject to regulatory approval, it will conduct a normal course issuer bid (the “Bid”). The Bid will be for 3,981,805 common shares of the Company over a period of one year (the “Bid Period”), being approximately 8.6% of Company’s issued and outstanding common shares, with up to 923,653 common shares of the Company purchasable over any 30-day period within the Bid Period, being 2% of Company’s issued and outstanding common shares. The Bid Period will commence on February 19, 2014, and will continue until the earlier of February 18, 2015, or the date by which the Company has acquired the maximum 3,981,805 common shares which may be purchased under the Bid.
Management believes that the market price of the Company’s common shares may not fully reflect the value of its business and future prospects, and as such it believes that purchasing its own common shares for cancellation is an appropriate strategy for increasing long-term shareholder value. The purchases will be made through the facilities of the TSX Venture Exchange (the “TSXV”), and the price at which the Company will purchase its common shares will be the market price of the shares at the time of acquisition. The Company has appointed Canaccord Genuity Wealth Management as its broker to conduct normal course issuer bid transactions.
The Company has 46,182,671 common shares issued and outstanding. Common shares purchased by the Company will be returned to treasury for cancellation.
Comment by Bert — February 14, 2014 @ 2:26 pm
Another good day in the market, up 10 pts. My portfolio is up
approximately 25K since the market turned, in fact, it was
up $1,500.00 today & being up, makes me feel good, considering
the down days, i have gone through.. I have noticed a change in
this investor attitude, i almost get as much of a kick out of
picking up the bargains out there, as opposed to selling at a
profit.. I feel i have been given another chance & the bargains
i am picking up now, will help me “forget about the past”, Bobby
Darin..
I bought a few more of PRG & GQC today. Also picked up a few of
PGX.. I was after forgetting that i had PGX when it was first
brought forward by BMR. My records show that i sold it for 0.60,
so there you go. I have a good memory but it’s short..
Comment by Bert — February 14, 2014 @ 2:56 pm
BMR: Will we get thru 1000 next week? also, when was the last time we were there?
Comment by STEVEN1 — February 14, 2014 @ 3:03 pm
I believe that GGI is having a news update next wed. on the internet. Can someone please provide the url to get on list for this internet site? I have a problem getting on their news release site. thanks Richard l
Comment by richard l — February 14, 2014 @ 3:47 pm
I would say it’s pretty certain the Venture will cross 1,000 next week…..it’ll be interesting to see how the Index handles this level, whether it fights with it for a bit or just rams through it…the last time the Index was over 1000 was 10 months ago….
Comment by Jon - BMR — February 14, 2014 @ 4:15 pm
JON: the last time was going ‘down’, this time we push thru going ‘up’!
Comment by STEVEN1 — February 14, 2014 @ 4:48 pm
Sorry, Steven, I thought that’s what u meant…early 2009, prior to that the end of 2002/beginning 2003…
Comment by Jon - BMR — February 14, 2014 @ 4:52 pm
Venture volume today; another 97 million. 🙂
Comment by Tony T — February 14, 2014 @ 5:31 pm
THANKS JON! GOOD VOLUMES, GOOD MOVEMENT UP IN GOLD, TSX VENTURE THIS WEEK, ETC…..PLS INDICATE NEXT RESISTANCE LEVELS ON BOTH TOO IN THE WEEKEND EDITION! THANKS GUYS! SILVER ALSO HAD A GREAT DAY TODAY TOO!
Comment by STEVEN1 — February 14, 2014 @ 5:51 pm
BMR
Thanks for your work so far on Romios ( V.RG ) . Their presentation and update on the website is well done . Incredable potential already in the Golden Triangle of BC with 200,000 acres and now the large Sheslay land added is brilliant . Great property in Val Dor plus projects in Timmins and Nevada . RG has a strong technical group .
Comment by Frankie — February 15, 2014 @ 6:46 am
Hey guys. I stumbled across this company Fancamp (v.fnc). Here is a link that sums up what the company has going on.
http://miningmarketwatch.net/fnc.htm
As always, do your own dd.
Comment by Tony T — February 15, 2014 @ 7:19 am
Frankie, yes, we believe there are some good things in store for RG, and we’ll be looking at it in more detail in the weeks ahead.
Comment by Jon - BMR — February 15, 2014 @ 8:00 am
Richard
I didn’t see an answer to your query. Bert to the rescue
You should send an email now to [email protected] to reserve your space
for 415 p.m. eastern time Wednesday Feb 19th. A limited amount of space
Just before the talk go to
garibaldires.presenternet.com
You will then see a block
Top line will show Garibaldires
Next line enter in pass key space 8877
next line enter your name.
Let me know how you make out. R !
Comment by Bert — February 15, 2014 @ 2:36 pm