The Venture has reeled off 7 straight weekly gains since its December 20 correction low of 711 as this fresh uptrend in an ongoing bull market accelerates.
It’s certainly not too late to ride this bull – still early in the game in terms of the “Big Picture”. Last weekend we gave valuable information to profit from immediately including exclusive BMR research that revealed the potential for some startling near-term gains in key sectors and stocks, and indeed many of our subscribers took full advantage of those opportunities. Watch for some important posts Sunday leading into the new trading new week as we highlight more key situations.
Venture Short-Term Chart
Momentum is always key, and the Venture continues to have that – this very bullish trend could certainly extend into the start of PDAC in early March. The Index enjoyed its second-best week of the year last week, adding 19 points to close at 836 – just 12 points shy of last summer’s high!
- RSI(14) is at 77% and will likely remain very elevated this month at or above 70%
- Buy pressure is steady, at its highest levels on this 6-month chart since mid-August
- ADX indicator confirms a solid bullish trend and -DI has room to fall further
- The EMA(8), currently 824, is providing superb support
- The 100-day SMA (not shown on this chart) is now reversing to the upside
The Venture “Big Picture”
Overall, Gold and Oil are behaving constructively and that’s underpinning the Venture’s rise. Combined with strength in Copper, Zinc, Cobalt, Uranium, etc., and encouraging exploration results from various companies, along with non-resource plays that are performing well, there’s no question the Venture has the “wind at its back” right now. Technical factors are also bullish.
The “Big Picture” is that the 2nd leg of the Venture bull market is in progress and will carry the Index to the 900–1000 level (minimum)during the first half of this year. Summer/early fall should be incredible.
1. The bull market that started almost a year ago, largely sparked by Gold and Lithium, has broadened out considerably – multiple sectors are now participating, and we expect some of them to really take off during 2017. That’s what will lift the Venture above 1,000 again;
2. The “masses” typically don’t start to recognize a major Venture market shift until about 1 year after it actually begins. This has been true with every bear market and every bull market going back to the days of the Vancouver Stock Exchange. So increasingly over the coming weeks and months, we expect a wave of new buyers to jump on board. Recently completed investor conferences (Vancouver Resource Show, Roundup) plus PDAC in early March should help in that regard;
3. We have a sense that Gold stocks on the Venture are about to wake up – they helped drive the early stages of the new bull market from February until early August, then cooled off as the Index underwent a healthy correction from a high of 848 to a December low of 711. The Venture also features a large group of Oil plays that will benefit from anticipated higher Crude prices;
4. At some point during this bull cycle, a company is going to make a major discovery somewhere – hopefully that’ll be in Canada in a district where multiple companies are active (Heart of Gold Camp?). When that does happen, the bull will go on a STAMPEDE!
Broadly speaking, after a 45% advance in 2016 to snap a 5-year bear market, the Venture has much going for it including technical factors such as rising long-term moving averages (200, 300 and 500-day SMA’s) that help confirm the bullish primary trend.
The Road To 1,000 Continues
Not shown on the above short-term chart, of course, are the Venture’s 300-day and 500-day SMA’s which recently reversed to the upside, confirming the primary trend.
The Venture bounced up and down repeatedly since early August through December, enough to make investors dizzy as a consolidation phase took hold following the 22-month intra-day high of 848 August 11. What we saw was a healthy pullback in an ongoing bull market, no different than what occurred during the 1st half of 2010. It’s always critical to stay focused on the “Big Picture”. We’re traversing through a bull market that has much longer and much higher to run despite some bumps that will undoubtedly occur along the way.
Some key trading/investment tips to improve your odds of success on the Venture:
- Always have cash on hand to take advantage of sudden pullbacks in the broader market or individual stocks like we’ve experienced since August, or great new opportunities that “pop out of nowhere”;
- Don’t be 100% invested at any given time and never invest more than you can afford to lose;
- Locking in some profits along the way is critical during a Venture bull run (as the saying goes, bulls and bears make money but pigs get slaughtered);
- For the Venture, an ideal diversified portfolio would consist of about 20 stocks across some different sectors;
- Always aim to make money serve you – not the other way around;
- Never allow yourself to lose big on one stock – that means don’t be afraid to cut your losses short on a deal if it’s not working out the way it’s supposed to (you will always have some losses, limiting them is key);
- Liquidity and the ability to quickly adapt to changing circumstances are really important;
- When it comes to the Venture, long-term buy and hold strategies seldom work – stay on top of each stock in your portfolio, technically and fundamentally.
