Toronto – Cambridge Resource Show, 7:15 am eastern
Greetings from The Centre Of The Universe, otherwise known as Toronto, where today marks the opening of the two-day Cambridge Resource Show…this will be a shortened version of Morning Musings due to travel and a busy schedule today as we check out some of the many companies that are exhibiting and hear what some outstanding speakers have to say about the state of the current markets – just how bullish (or bearish?) will some of them be?…
The Vancouver Resource Show in June was full of so much doom and gloom it almost made one sick…and you know what, that was the best time ever to be investing in Gold and Silver and the junior resource market…one of the few analysts who was actually bullish on the markets last June was Jeb Handwerger (www.goldstocktrades.com), a highly respected Florida newsletter writer who has become familiar to us and Rainbow Resources‘ (RBW, TSX-V) followers for his recent RBW recommendation…Handwerger will be speaking again at this Cambridge Show and we’re looking forward to hearing what he has to say, and we also wouldn’t be surprised if he were to give Rainbow a strong mention (by the way, Rainbow is holding a reception for brokers/investors this evening, an event we don’t think they’d be staging unless there was some good news coming down the pipe very soon – speculation)…
Now below is a chart we’d love to show everyone who’s walking through the doors of the Sheraton today and tomorrow because this is the most important thing they need to know – the awful state of the U.S. Dollar Index…folks, if there’s anything that confirms the direction the Venture Exchange is going (up, up and away), it’s the U.S. Dollar Index…the Venture has a strong inverse relationship with the greenback and has recently broken out relative to the Dollar Index…that’s a huge development from a technical standpoint as it breaks a trend that has been in place for well over a year…the Dollar Index is in for a rough October, as John points out, as it approaches a downtrend line and resistance from three moving averages…what this chart tells us is that Gold and Silver are both going a LOT higher, QE Infinity may even be put on steroids, Obama will win re-election, and the Americans once again will punt the debt can down the road a little further…
Any rallies by the Dollar Index, like we’ve seen in recent sessions, will be viewed as shorting opportunities by astute traders…as of 7:15 am eastern, the Dollar Index is off slightly at 79.78 after briefly touching the 80 level overnight…resistance, resistance, resistance – that’s what the Dollar Index is facing right now, and that’s music to the ears of Gold and Silver bugs and junior resource investors in general…
Okay, with that out of the way, let’s take a look at the TSX Gold Index which staged an interesting reversal yesterday (as did the Venture once it nearly hit its 20-day moving average)…the outlook for the Gold Index is very positive for the fourth quarter as it has superb support near current levels (it closed at 341 yesterday) and should really start to fly once it breaks through the resistance band between 352 and 360…the 100-day SMA recently reversed to the upside after a decline that started late last year…the Gold Index has been consolidating in recent sessions, and that could continue for a little while longer, but we’re expecting the next leg of the uptrend to kick in shortly (sometime in October)…
Today’s Markets
Gold fell as low as $1,735 on profit-taking yesterday before finding support, as expected, and rebounding…as of 7:15 am eastern, the yellow metal is up $2 an ounce at $1,755…Silver is flat at $34.00…Copper is up a penny at $3.71 while Crude Oil has gained 83 cents to $93.81…
Asian markets were up strongly overnight with China’s Shanghai Composite Index leading the way with a powerful 52-point jump (2.6%) to 2056…sentiment was supported by comments from the Chinese central bank that it would inject 180 billion yuan into the money market, its largest weekly injection since Reuters records began in 2006…European markets are higher this morning, ahead of the much-anticipated Spanish budget, while stock index futures in New York as of 7:15 am eastern are pointing toward a positive open on Wall Street…
Smart investors weren’t pushing the panic button yesterday – they were picking up bargains – when the Venture Exchange wobbled for the third day in a row as part of a very normal and healthy mini-pullback…the Index fell as low as 1294 and then rallied to finish at 1307…
RJK Explorations (RJX.A, TSX-V)
We’re very bullish on the Blackwater Gold-Silver district in central British Columbia going into the fourth quarter, and one of the juniors to keep a close eye on is RJK Explorations (RJK, TSX-V) which recently started a follow-up drill program at its Blackwater Northeast Property where it made an interesting high-grade Silver discovery last spring…John’s 3-year weekly chart below shows RJK has found strong support and appears to be in the early stages of a new uptrend…what’s particularly revealing is that the MACD has crossed above a signal line and is very well positioned to support a strong move up…RJK closed off half a penny at 15.5 cents yesterday…
Chart note: Both Jon and John hold share positions in RJX.A (Terry does not).
The writer – Rainbow is holding a reception for brokers/investors this
evening, an event we don’t think they’d be staging unless
there was some good news coming down the pipe very soon.
Bert – I appreciate you, but the above noted words are too forward looking.
There’s no way should anyone consider taking a position on such
conjecture. Forgive me, if my mind needs some adjustment, but that happens, when your every comment
is stored for future reference. Have a good day at the conference.
2 hours left before market opens & it appears we may have a green day. R !
Comment by Bert — September 27, 2012 @ 3:46 am
Bert, the thrust of your overall opinion is perfectly acceptable. But in fairness to Jon, I think his conjecture is also fair editorial. In the market you look for clues and signs in terms of what a company is doing. Rainbow has given some clues and signs. No one (not even BMR) knows what really might be coming down the pipe but to speculate that there could be good news on the horizon based on some important indicators, or what a company is doing, is perfectly fair comment and smart speculation some would say. So I support our writer on that but insisted it be referred to as speculation.
Comment by Terry - BMR — September 27, 2012 @ 4:06 am
Terry
No doubt, it’s much better to have one’s posts edited & posted
without delay, rather than the delays’ we have been experiencing
in the past. The difference in editing posts directed my way, as
opposed to the post i wrote this morning is, those directed my
way were no doubt nasty, where-as the one i wrote this morning
was my opinion & was put forward with mannerism in mind, no
offense intended whatsoever.. Because it was edited, it does tell
me what is BMR sensitive & i will refrain from touching on this
topic in the future. R !
Comment by Bert — September 27, 2012 @ 4:43 am
Does anyone have any further info on mmx and when the drill results are expected?
These delays normally mean that the grades are much lower than expected although I hope I’m wrong.
Comment by Scy — September 27, 2012 @ 4:52 am
These companies always have a good story to tell until results come in
Comment by OldMan — September 27, 2012 @ 4:55 am
Jon, what a coincidence….You are at the Cambridge Resource Investment Conference? The Sheraton is only a block away from where I work in downtown T.O. I feel like someone famous is visiting our city…Anyhow, keep up the great work, and I look forward to hearing whatever information you can gain from this function. Cheers!
Comment by Steven — September 27, 2012 @ 5:09 am
Email back from RBW states that drilling has continued to a total of 15 holes on the International.
News early next week on corporate updates.
Comment by Rick — September 27, 2012 @ 5:11 am
RJX is looking great this week. Also DYG as BMR had briefly brought up before has announced some news today!
Comment by Cam — September 27, 2012 @ 5:37 am
Brian Lundin bullish on old bmr favorite SFF.V :
theaureport.com/pub/na/14431
Comment by jake — September 27, 2012 @ 6:02 am
@ Jake
From Brian Lundin on SFF: “I hate to give specific price targets, but Seafield, with its large established resource, has a lot of upside ahead of it. As the gold market continues to advance and the general market strengthens, companies with established resources will be the big winners.”
I hope he is right, in which case many BMR reader will do very well in the coming years!
Comment by Hugh — September 27, 2012 @ 6:51 am
Are you guys taking a position in PEM ? OSK did and are assting the drilling their big Idaho potato . They are looking for a Carlin type company maker trend there with silver as a add in .
Comment by Frank — September 27, 2012 @ 6:55 am
The volumes on PPP & RJX are so pathetic- these are not volumes needed for a real rally with any conviction- perhaps volume will come later then we will have to chase the stock as you had said
Comment by Richard — September 27, 2012 @ 9:59 am
Time for some real transparency with rbw where or at what depth was the core sample taken how many feet did it run did all holes encounter the same type of sample maybe the sample was taken from the first few feet that was exposed time for some real news investors are getting tired of waiting while other stocks run I guess I speak the way I am feeling others may feel differently
Comment by gil — September 27, 2012 @ 11:41 am
Pierre says they are pleased with the core content so far but no mention of specifics.
Comment by Rick — September 27, 2012 @ 1:08 pm
Of course Pierre they are pleased. I’m pretty sure he is not going to say they are crappy
Comment by OldMan — September 27, 2012 @ 2:09 pm
Jon, would you take a look at Alexandria Minerals (AZX.V or ALXDF)chart? To my eyes even the ICHIMOKU CLOUD and Dr. Elder’s IMPULSE SYSTEM are looking great! Here’s a helpful report on the present state of things with Alexandria Minerals:
rblcommunications.com/blog/2012/09/26/stateside-report-on-alexandria-minerals-corp/
Thanks much!
Comment by Leo — September 27, 2012 @ 4:38 pm
It would appear they are pleased enough to keep drilling or do you think they would keep drilling crappy looking core?
Comment by Rick — September 27, 2012 @ 4:39 pm