It has been a wild and crazy day with stock markets plummeting and Gold hitting another new all-time high before pulling back…as of 9:30 am Pacific, the yellow metal is off $10 an ounce to $1,651…it had been as high as $1,683 today, surpassing yesterday’s new record of $1,674…Silver is off $2.27 to $39.46, Copper is down 10 cents to $4.24, Crude Oil has weakened further to $88.90 (good for Gold producers) while the U.S. Dollar Index has surged over a point to 75.04…one must have nerves of steel in these current volatile market and economic conditions…the perception is that global economic growth is slowing and that the United States could be moving toward a double-dip recession…the European Central Bank left interest rates unchanged today amid a slowdown in economic growth and as the region’s debt crisis spreads to Italy and Spain, increasing pressure on policy makers to resume bond purchases…ECB President Jean-Claude Trichet has announced a six-month operation to inject liquidity in the markets…JP Morgan lowered its U.S. economic growth forecast by 1% for the third quarter today, blaming recent developments in the American economy for the downward revision…it also said it now expects the Federal Reserve not to raise interest rates until the middle of 2013 at the earliest…the bank says it expects gross domestic product growth to be no higher than 1.5% rather than 2.5% previously forecast for the quarter…however, it suggested growth in the fourth quarter of the year could be slightly better at 2.5%, though that number was revised down from a previous forecast of 3%… JP Morgan also revised down its forecast for first-half growth next year to 2% from 2.5%, blaming the impact of higher taxes and lower federal government spending…the Labor Department reports U.S. job numbers for July tomorrow…non-farm payrolls are expected to increase by 85,000 with the unemployment rate expected to hold at 9.2%…the Fed meets next week when Bernanke may try to give the markets a boost…the Dow has resumed its downward spiral and is searching for a bottom…important lows last year occurred slightly below the 300-day moving average (SMA) where it’s close to now…the CDNX is being pulled down by the broader markets again this morning, though it has still performed quite a bit better than the Dow for example since the end of June (down 1% vs. a 6.5 % drop in the Dow)…as of 9:30 am Pacific, the Venture is off a whopping 87 points at 1879, falling through an important support level at 1940 as John’s chart illustrates…the June low was 1862 and that’s now the next support level…
If this is a “capitulation” moment, or if we’re approaching one, it’s important to stay focused on the big picture and avoid falling victim to fear…the CDNX‘s 300 and 500-day moving averages continue to rise, and that provides confirmation in our view that the long-term bull market remains intact…there are many quality exploration plays on the Venture at the moment, and Gold producers on the big board, that offer tremendous upside potential and we’ve mentioned quite a few of them in this space over the last several weeks…quite often in moments like this when many investors are ready to throw in the towel, a turning point soon occurs…just a couple of notes on individual plays this morning but much more tomorrow…Gold Canyon Resources (GCU, TSX-V), which continues to develop its very promising Springpole Property 110 kilometres northeast of the Red Lake Mining Camp in Ontario, released more positive results this morning including 24 metres (shallow depth, from 16 to 40 metres) grading 17.48 g/t Au in hole #66…at a cut-off of 34.29 g/t Au, this intersection was actually 10.31 g/t Au…it was drilled in the East Extension Zone which the company might ultimately be able to connect with the Portage Zone…the high-grade, near-surface mineralization in the East Extension could potentially make this zone a good starter-pit area…four rigs are currently drilling at Springpole…an updated 43-101 resource estimate is expected by year-end…GCU‘s 300-day moving average (SMA) is just below $2.00, an area it may wish to test before ultimately pushing higher again…the stock climbed as high as $2.45 on the news this morning but has since backed off to $2.20, down a nickel for the day…Gold Bullion Development (GBB, TSX-V) has fallen through support (intra-day at least) at 35 cents to a new 52-week low…it’s off 4 pennies at 32.5 cents on relatively low volume…there is strong technical support around the 30-cent area…in the non-resource sector, a bottom-fishing opportunity may exist with iSign Media Solutions (ISD, TSX-V) which has dropped by more than half over the last couple of months…it’s down 3 pennies this morning to 28 cents and John’s chart shows strong support at 27.5 cents…
Note: Both John and Jon continue to hold positions in ISD…
Jon please delete my post #14 under the aug. 3 musings
thanks
Comment by GREG H — August 4, 2011 @ 8:39 am
Hello gentleman at BMR,
I did wish to post my posting in todays news on Trueclaim. I thought I was in
August 4th. Anyway of moving it up to todays postings.
Comment by George Pesut — August 4, 2011 @ 8:49 am
ok, done…
Comment by BMR — August 4, 2011 @ 8:56 am
BMR
CAN YOU DELETE MY POST 314 UNDER AUG 3 MUSINGS, VERY IMPORTANT?
THANKS
Comment by GREG H — August 4, 2011 @ 8:57 am
THANK YOU
SORRY FOR THE SCREW UP
Comment by GREG H — August 4, 2011 @ 8:58 am
I hope BMR are learning the mechanics of investing . Investors run away from speculative investments and look for safe heavens. Ventur of all type is speculative investments. Now yes Gold is up and yes Gold is a safe heaven. That’s why you buy Gold. Not a so call company that maybe has some gold … again you buy Gold. Physical Gold , Gold producers, ETF. I still can’t believe that you are, in this very uncertain markets, pushing ventur stocks. You are killing your followers saving accounts, investments accounts, RSP’s accounts and so on. By the way it’s not over.
Comment by Andre — August 4, 2011 @ 9:16 am
i see the fear mongers are all out in full force, spreading fear is big business these days it would appear. after 2008 shorting increased tenfold so now the rich make money on market weakness as well as market strength. everyone can do as they wish but this is nothing like 2008 so today looked like a huge sale day to me. sell if you wish i am sure there are plenty of savvy investers out there sniffing out bargains more than willing to take them off your hands.
cheers and happy bargain hunting
Comment by heath — August 4, 2011 @ 1:24 pm
Everthing went down today…. GBB is likely to hit 30 cents mark tomorrow and I am holding a low portfolio, SD … my favourite, with my big buy lot at 3 cents still there. BER … as I predict, it will go back to 10 cents and wait for chance to go up. At this moment, it will continue to weaken. NAR is quiet but very firm at 18 cents. SFF cannot be outstanding in this market condition… 2.5 cents lower is not too bad…. . Buy low …. sell high…. my sixth sense… another 10-15 % adjustment at least…. Keep the cash guys…
Comment by Theodore — August 4, 2011 @ 1:31 pm
Jon… the CDNX is now down 7% in August alone… like the guy on 680 today.. dont worry be happy our economy is good.. dont panic… as our dreams of retirement goes down the drain…
regardless of the action in gold, the share price of all gold stocks suck… and probably will continue to until QE3 comes into play…
the technical damage is done with most of the venture stocks yes??
we are a good 3-6 months away from any share price recovery in most.
CEE for instance.. they only made 48 million, and the SP has taken a 40% haircut.. rationality has disappeared.. fear is a bad thing especially when you are on the receiving end of the irrationality.
time to drain the swamp… screw the alligators. the 21 and 50 month lines in the sand are 10 points from where we are now.. that gets broken we are toast.. would you concur??
Comment by Jeremy — August 4, 2011 @ 4:13 pm
Andre – I suggest you move to a new web site where you deal in Canada Savings Bonds and other “no” risk investments. As for myself and others that follow BMR = we do so as a concious decision to get more information as part of our own due diligence.
No one from BMR sent me a note or email to say here we are. I signed up for their daily updates and am very happy I did. A down market is certainly a convenient time for you to jump on the “no” bandwagon but I would prefer you spend your time and energy elsewhere. We are all responsible for our own decisions and I for onw don’t need to waste my time reading your negative comments which have no basis in fact.
Comment by barry — August 4, 2011 @ 6:30 pm
Although I think today’s blood bath is overdone, if the negative news keep on appearing frequently, the lemmings in the wrong places will soon fall off the cliff.
Comment by Bruce — August 4, 2011 @ 7:49 pm
Back briefly to state that the job numbers are better than expected, we should have an up day ?
R !
Bert
Comment by Bert — August 5, 2011 @ 4:33 am
true enuff Bert .. a bullet dodged?? fear begets fear .. margin calls kill.. idiot TV confuses.. visions of 2008 dancing in their heads..
Comment by Jeremy — August 5, 2011 @ 5:18 am
The interesting thing I have noticed this morning is the lack of volume on the individual stocks, GBB, VGD, Sandspring, and others, does not appear to be a major sell off, I think going forward the less speculative plays will do ok.
Comment by GREG H — August 5, 2011 @ 6:16 am
I’m not sure Greg. Yesterday, was, I think, just a hint of the turmoil to come over the next 12 months at least. Last week I made a comment that all that is needed to cause a tailspin is an intersection of bad news and that’s what occurred yesterday. Greece’s debt is peanuts compared to the potential problems that Spain and Italy could present. Ireland’s unemployment rate is over 14%. France is coming into the picture and UK is a mess. Greece has already been bailed out twice and the outlook for Greece is still bleak. I’m pretty sure that the recession is going to become more severe and prolonged. US is the same.
I’m holding for now but prepared to bail and go to cash to minimise losses. I would then look at ETFs to recoup losses. Good luck 🙂
Comment by Andrew — August 5, 2011 @ 7:05 am