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TSX Venture Exchange and Gold

The Venture Exchange (CDNX) continued its climb last week, gaining 70 points or 3% to close at 2314.  While the rally since the yearly low of 2054 March 15 has been impressive in terms of total points (260 or 13%) over just nine trading sessions, volume has declined considerably and that’s a major concern.   A market that rises on decreasing volume is a signal that buying pressure is faltering, plain and simple.  While the overall and long-term Venture Exchange bull market remains intact, significant near-term risks exist.

In addition, the CDNX is now under-performing the broader markets (the CDNX is up just 1% this year vs. gains of 5.5%, 4.4% and 3.3% for the Dow, TSX and Nasdaq, respectively) after significantly out-performing those markets over the last half of 2010.  This raises a “cautionary flag” as the CDNX is an extremely reliable leading indicator.  Investors are seeing more geopolitical and other risks right now and that has them less inclined at the moment to throw their money into speculative and risky junior mining stocks.  This can change very quickly, however.

The 2314 close Friday puts the CDNX just a few points below its slightly rising 50-day moving average (SMA) and just a few points above the 20-day SMA which continues to fall.  The Index is currently in a zone of resistance but it’s also underpinned by support at 2300.  The final four trading days of the month should determine which way this market is going to turn – it will either break to the upside and take a run at the previous high of 2465, or it will weaken and fall below 2300.  We will patiently wait for the market to tell us what it wants to do.  The possibility of a three-wave correction, taking the Index down about 20% from current levels, still exists.  For this market to head higher, volume must increase while the RSI and Slow Stochastics indicators must break above their resistance trendlines as John’s chart that we posted Friday morning clearly indicates:

Let’s review in point form why we still remain cautious over the immediate to short-term regarding the CDNX:

1. The market has clearly met powerful resistance between 2438 (the Feb. 22 high) and 2465 (the March 7 high).  It is now in a new zone of resistance in the immediate vicinity of the 50-day SMA;
2. Exhaustion appears to have set in – the CDNX climbed 83.5% over eight months.  Buying pressure was at a level (“pivot point”) where other pullbacks have started;
3. The CDNX is now significantly under-performing the major markets.  Given the fact the CDNX is such a reliable leading indicator, this suggests to us an increased risk of a major broad market reversal or even a correction in precious metals and commodities across the board;
4. The CDNX fell below its 50-day SMA March 10 for the first time since the start of the big run last summer.  In almost all cases over the last decade, with the notable exception of 2009, a drop below the 50-day SMA following a significant uptrend has preceded a major correction.  The market did fall sharply after March 10 to a low of 2054 March 15 – the question is, was this the end of the correction or just the first leg of the correction?
5. The CDNX’s 50-day SMA started to decline March 14, a negative sign, though it has recently reversed again.  The sell-off started in earnest when the market first fell below its 50-day SMA, so naturally this is now an area of resistance (2321) which is why the market reacted when it got as high as 2328 Thursday;
6. The 20-day moving averages continues to decline which is a problem for this market right now – a reversal in this pattern is imperative and would attract fresh buying interest.  The 10 and 50-day moving averages have reversed to the upside and those are positive developments.  The 100, 200 and 300-day SMA’s remain in bullish alignment which confirms the long-term trend;
7. Volume on the rally since March 15 has been relatively low;
8. It can be interpreted that the CDNX is in the midst of a 3-wave, A-B-C correction based on the chart patterns;
9. The current market pattern has similarities to the May-June, 2006, correction when the CDNX fell nearly 30%;
10. Too many individual stocks are technically weak;
11. The fact the CDNX would experience weakness at a time when Gold is hitting new all-time highs, and commodities in general have been very strong, is a serious negative development;
12. The geopolitical backdrop is not positive – major confusion and uncertainty on the world stage quickly chase investors away from the world’s most speculative market, the CDNX.
    

Fundamental factors could quite possibly create a very difficult environment for stocks over the coming  days and weeks, though markets have a tendency sometimes to climb a “wall of worry” for an extended period.  Continued unrest and uncertainty in the Middle East, the potential of rising oil prices due to this unrest as well as demand/supply dynamics, debt problems from Europe to the United States, U.S. budgetary battles, inflation concerns and rising interest rates in some parts of the world, austerity measures introduced by certain governments, and now the near-term negative affects of the problems in Japan are all factors that could create a bumpy road ahead for the markets.  In Canada, a critical federal election is now set for May 2.  At the very least the market wants to see a strong Conservative minority government and anything short of that will cause considerable anxiety among many investors.

Gold hit a new intra-day all-time high of nearly $1,450 Thursday before pulling back and finishing the week up $10 an ounce at $1,430.  Silver enjoyed a strong week and jumped $2.04 to 37.28.  Silver has had a spectacular run recently, and one thing that concerns us is that steep rises like we’ve seen in Silver and such out-performance against Gold have often occurred before corrections in precious metals.

The fundamental case for Gold remains incredibly strong – currency instability and an overall lack of confidence in fiat currencies, an extended period of negative real interest rates (inflation is greater than the nominal interest rate, even in China and India despite increasing rates there), massive government debt from the United States to Europe, central bank buying, flat mine supply, physical demand, investment demand, emerging market growth, geopolitical unrest and conflicts (with the volatile Middle East being the focus right now), rising oil prices…the list goes on.  It’s hard to imagine Gold not performing well in this environment.  However, one cannot rule out the possibility of another correction prior to a fresh advance that takes Gold beyond $1,500.

Despite signs of an improving U.S. economy, the Fed is expected to error on the side of caution and maintain its accommodative monetary policy for an extended period which is bullish for precious metals and commodities in general.  The Fed will want to see payroll gains in excess of 200,000 for at least six to nine months and a significant decline in unemployment before withdrawing its massive monetary support (QW2).  The current U.S. economic expansion is just 20 months old (expansions since WW2 have tended to be at least 60 months) and there are still significant risks to the economy including troubling high levels of debt at every level of government, a housing market that is still very weak (one in four mortgages are underwater and prices continue to decline in many areas) and now an increase in oil prices which has the potential of hitting consumers hard.  Interest rate increases in the U.S. appear to be out of the question until at least sometime next year.  Overall, this is the type of environment that’s very supportive of Gold and a speculative commodity-driven market such as the CDNX which is why we see any pullback in the CDNX, minor or major, as merely a correction within a powerful ongoing bull phase.  Any hint of a global economic slowdown, due to a combination of factors, may convince the Fed to launch QE3 after QE2 expires in June.

A couple of interesting developments last week on the Gold front:

The Utah legislature passed a bill allowing Gold and Silver coins to be used as legal tender in the state, according to the true value of the metal in the coins and not by the face value stated on the coin. Similar proposals have been developed in Colorado, Georgia, Indiana, Iowa, Missouri, Montana, New Hampshire, Oklahoma, South Carolina, Tennessee, Vermont, and Washington.

In India, standard 24-carat Gold coins have been selling extremely well at more than 466 post offices throughout the country. Despite the high price, Indian consumers have been buying small quantities of coins to give during the festival season.

Gold has traded in a range of $1,430 to $1,439 so far today while Silver is 48 cents higher at $37.65…Gold retreated yesterday after climbing to a new all-time high of nearly $1,450 while Silver reached a new 31-year high of $38.18…Silver has enjoyed a spectacular run recently, and one thing that concerns us is that steep rises like we’ve seen in Silver and such out-performance against Gold have often occurred before corrections in precious metals…in addition, the action in the CDNX this month suggests an increased probability of either a near-term correction in precious metals or the broader markets in general…so we continue to remain cautious and we’ll be looking for the CDNX to give us more definitive answers in the days ahead…a clear short-term signal, one way or the other, bullish or bearish, is what we’re imminently expecting…as of 8:00 am Pacific, Gold is $5 higher at $1,436…the U.S. Dollar Index is up over one-tenth of a point to 75.86 while crude oil is 41 cents lower at $105.19…U.S. consumer sentiment in March fell to its lowest level in more than a year as gasoline and food prices rose, according to a survey released this morning…the index was slightly lower than March’s preliminary reading while inflation expectations remained elevated…even so, the survey from Thomson Reuters and the University of Michigan said there was no decline in buying plans which is important…the U.S. economy grew more quickly (3.1%) than previously estimated in the fourth quarter as businesses maintained fairly solid spending and restocked shelves to meet rising demand, while corporate profits increased 3.3 percent, a government report showed today…consumer spending, which accounts for more than two-thirds of U.S. economic activity, grew at a revised 4% rate in the final three months of 2010 instead of the previously announced 4.1%…New York and Toronto markets are both higher this morning while the CDNX has gained 8 points to 2312…Abcourt Mines (ABI, TSX-V) enjoyed a powerful move yesterday, getting through resistance at 23 cents and climbing to a new 52-week high of 25.5 cents, but the stock has backed off this morning after the company announced plans to raise up to $5.5 million at an undetermined price…ABI is currently down 3 pennies at 20 cents…financings always make investors a little nervous which is why the stock has weakened this morning but we have long-term faith in this situation as Abcourt is developing assets that we believe, by any reasonable measure, are undervalued by the market…Archean Star Resources (ASP, TSX-V) has finally started trading on the Venture Exchange…Archean Star of course is a spin-off from Kent Exploration (KEX, TSX-V) and is exploring the large Gnaweeda Gold Project in western Australia…Kent holds approximately 40% of Archean’s 28 million outstanding shares…new drill results are pending from Gnaweeda so we’ll be keeping a close eye on that situation…Kent, which has a current market cap of just $6 million, is drilling its Alexander River Property and we expect the company will also start generating cash flow this summer from its Flagstaff Barite Project in Washington State…Seafield Resources (SFF, TSX-V) continues to languish in the low-to-mid-30’s…technically, however, Seafield’s long-term uptrend remains intact with rising 200 and 300-day moving averages…the stock bounced off its 300-day SMA March 15 and 16…Seafield has been in a consistent decline during the first quarter of this year but we anticipate Q2 will be a lot kinder with improving short-term technicals and more results from Quinchia…Seafield is currently off half a penny at 34 cents…Richfield Ventures (RVC, TSX-V) has been holding steady in the $6.50 range for the past couple of weeks, a positive trading pattern that we’ve seen prior to strong upside moves in this stock since the summer of last year…while it’s still facing some technical headwinds, Gold Bullion Development (GBB, TSX-V) is looking stronger and has moved above its 20-day SMA for the first time since the stock suddenly plunged in mid-February…GBB is up a penny-and-a-half at 48 cents…from a fundamental standpoint, there’s no question in our mind that the LONG Bars Zone is as attractive as ever…we’ll be posting a detailed CDNX analysis Sunday in Part 1 of our Week In Review with Parts 2 and 3 updating GBB, CQX, ABI, CUI, RVC, GQC, VGN, AGE, SD and SFF…depending on market conditions, we may highlight some additional situations as well…

For the past two weeks we’ve taken a very cautious stance toward the CDNX on a short-term basis and for many good reasons as outlined in our last two “Week In Review” pieces.  The next few trading sessions could be critical, we believe, in terms of deciding the battle between the bulls and the bears as far as the Venture’s near-term outlook is concerned.  The long-term bull market remains intact.  Significant near-term risks continue to exist, however.

The CDNX retreated today to close at 2305 after climbing as high as 2328, a gain of 274 points or 13% in just eight trading sessions.  The big test now comes to see if the Index can blast through 2328 on strong volume, which would change the dynamics, or if it will fall below 2300 and head south again for a possible 3-wave correction as John has argued is very possible.

These are interesting times as the updated CDNX chart below reveals.  The Index should give us some important answers very soon.  For the bulls out there, at least a couple of critical things have to happen – volume must increase and the RSI has got to break above a resistance trendline.

We’ll be watching trading very closely Friday and we’ll be posting a detailed update on the CDNX technicals Sunday in Part 1 of our Week In Review.

Gold has traded in a range of $1,435 to $1,444 today…as of 7:05 am Pacific, the yellow metal is up $2 an ounce at $1,441…Silver has hit a new 31-year high and is currently up 43 cents at $37.85 while the U.S. Dollar Index is off slightly at 75.77…crude oil is off 29 cents at $105.55…U.S. unemployment claims fell last month as expected with the four-week moving average dropping to its lowest level in two-and-a-half years…durable goods orders, however, were weaker than expected for January…the Comeback America Initiative, a deficit watchdog group funded by billionaire Pete Peterson, has released an index, done with master’s students from Stanford University, that ranks the fiscal sustainability of countries around the world…Australia, New Zealand and Estonia occupy the top three spots…Canada is 11th while the United States is near the bottom, 28th overall, followed by Hungary, Ireland, Japan, Iceland, Portugal and Greece…yields on Portuguese bonds hit a new euro-lifetime high today after the country’s prime minister resigned late yesterday and as reports said the country was expected to seek a bailout from the European Union and the International Monetary Fund soon…Portugal’s parliament rejected an austerity program proposed by Prime Minister Jose Socrates’ government…EU leaders hold a two-day summit starting tomorrow but they are not expected to endorse a full package of measures to attack the sovereign debt crisis, despite the fact they had been expected to do so for months…Spain is also in a mess…a survey released today showed that Chinese factories have stepped up a gear this month while their price increases have slowed, indicating that the government has made some progress in taming inflation without unduly harming growth…the HSBC flash manufacturing purchasing managers’ index (PMI), the earliest available indicator of China’s industrial activity, rose to a two-month high of 52.5 in March, up from a final reading of 51.7 in February…a figure above 50 points to expansion on the month…the flash PMI, designed to provide a preview of the final data which is due a week later, suggested that China’s manufacturing sector had yet to feel much, if any, impact from the disruption to global supply chains after Japan’s devastating earthquake…a surprise new oil windfall tax in Britain has damaged the prospects for several Canadian producers and raised concerns over possible copycat measures by other governments…it never ceases to amaze us how foolish governments can be and they certainly represent a constant threat to investors…the climb in the CDNX since the March 15 intra-day low of 2054 has been impressive to say the least as the Index closed yesterday at 2318 where its 20 and 50-day moving averages (SMA) have converged…we are still very cautious with regard to the CDNX for various reasons including the fact the 13% move over 7 days was on lighter than usual volume…some indicators have turned more positive and one cannot rule out the possibility that the sudden drop to 2054 was an anomaly and not the beginning of a deeper correction…we’ll continue to watch things closely today and tomorrow in advance of an updated analysis Sunday…the overall CDNX bull market certainly remains completely intact and sometimes the best strategy in this kind of environment is to avoid trying to time the market by playing the short-term moves…as of 7:05 am Pacific, the CDNX is up another 7 points at 2325…there is little to report on the individual stock front as activity is generally quiet across the board…Abcourt Mines (ABI, TSX-V) has been showing some strength in recent days and is currently up half a penny at 21 cents…this is a company with strong underlying fundamental value and we believe it’s only a matter of time before the market wakes up to that…Wildcat Silver Corporation (WS, TSX-V) delivered some solid results this morning from its flagship Hermosa Project in Arizona including 100 metres grading 153 g/t Ag…the company has four drills operating on the property…the stock is the third most active on the Venture so far this morning, up 28 cents at $2.23…Wildcat Silver has been an incredible performer over the last couple of months…we’re traveling today and we’ll be going into more detail on individual companies in the BMR stable tomorrow…

Gold is strong today as it closes in on its recent all-time high of $1,446……as of 8:00 am Pacific, the yellow metal is up $12 an ounce at $1,441…Silver has eclipsed its recent high and is up 47 cents at the moment to $36.85…crude oil is 46 cents higher, trading at $105.43, while the U.S. Dollar Index is ahead slightly at $75.71…international tensions continue to ratchet up…the first bus bombing in several years in Jerusalem this morning comes amid rising tensions between Hamas and Israel…the European sovereign debt issue is coming back into the spotlight again with an important austerity measure vote in Portugal today…chances are the government will fall and debt-ridden Portugal will require a bailout…new U.S.  single-family home sales unexpectedly fell in February to hit a record low and prices were the lowest since December 2003, a government report showed this morning…the Commerce Department said sales dropped 16.9% to a seasonally adjusted 250,000 unit annual rate, the lowest since records began in 1963…economists polled by Reuters had forecast new home sales edging up to a 290,000-unit pace last month from a previously reported 284,000 unit rate…the CDNX is up 7 points to 2304….the lack of volume in the CDNX rally since the intra-day low of 2054 March 15 is a very bearish short-term sign…sustained price moves to the upside require volume which just isn’t there with the CDNX at the moment…volume is one of the most important technical indicators of all and many investors often fail to recognize that…the CDNX is also under-performing vs. Gold which also has us very concerned…Everton Resources (EVR, TSX-V), a company we’ve been tracking closely over the last several months, has started a deep drilling program at its APV Property in the Dominican Republic, immediately adjacent to the Barrick-Goldcorp massive Pueblo Viejo Gold deposit…Everton’s geologists believe the Pueblo-Viejo deposit runs onto and through its property…this is the first time deep diamond drilling has been conducted in the DR and in the process Everton will be testing the silica lithocap theory…this is certainly a situation to watch closely and we hope to interview EVR President and CEO Andre Audet again in the near future…EVR has firmed up this morning on the news and is currently trading at 33.5 cents, a gain of 3 pennies for the day on volume of 286,000 shares…of course another company we’re very bullish on in the DR is GoldQuest Mining (GQC, TSX-V)…like many stocks, GQC has been suffering from some technical weakness lately with a declining 50-day moving average (SMA) among other things..GoldQuest is underpinned however by strong fundamental value with an impressive pipeline of projects including three properties with 43-101 resources…drilling continues at GQC’s flagship Escandalosa Property in the DR with initial results expected soon as the drill program started three months ago…GoldQuest is in a healthy cash position and plans to drill two additional properties in the DR (Las Animas and Jengibre) after completing approximately 40 holes at Escandalosa…GQC hasn’t traded yet today after closing yesterday at 34.5 cents…Abcourt Mines (ABI, TSX-V) is unchanged at 19 cents..we spoke with President and CEO Renaud Hinse a few days ago and Hinse remains very optimistic regarding his company’s drill programs at Elder-Tagami and Abcourt-Barvue…in our view there’s no question the full value of these properties (both have 43-101 resources in addition to substantial exploration potential) is not reflected in the ABI share price with Abcourt’s market cap sitting at just $20 million…the company has one of the best silver assets in the country (Abcourt-Barvue) and a growing Gold deposit at Elder-Tagami with considerable upside potential…we suspect Hinse is considering strategies to unlock the value of Abcourt’s assets…given that we’re expecting more weakness in the CDNX, we’re in the process of assembling a list of stocks for our readers’ due diligence that we believe could emerge very powerfully out of any major correction…

Gold has traded in a range of $1,419 to $1,433 today…as of 8:05 am Pacific, the yellow metal is unchanged at $1,427…Silver fell to $35.80 but is now up 28 cents at $36.38 while the U.S. Dollar Index is quiet at 75.49…Gold could prove to be important to Gadhafi’s ability to wage a “long war” in Libya as the evil dictator promises…the Libyan central bank, which is under Gadhafi’s control, is believed to hold approximately 143.8 tonnes of Gold according to the latest data from the International Monetary Fund…some believe the amount could be higher…those reserves are among the top 25 in the world and are worth more than $6.5 billion at today’s prices…Ghadafi’s Gold is not held at international vaults but within the country…while Libya has been hit with sanctions including a freeze on many of its assets, it may be possible for Ghadafi to sneak Gold into a neighboring country such as Chad or Niger and swap it for food, arms or cash…Ghadafi unfortunately still has a few friends in the world and he should not be underestimated…U.S. officials also believe he is sitting on many billions of dollars in cash…the situation in Libya is very complex and is just one of many geopolitical concerns and uncertainties the market is facing right now…Morgan Stanley’s tracking estimate for U.S. growth in the first quarter has slipped in the last month to 2.9% from 4.5%, and that was before the troubles in Japan…the U.S. economic recovery has certainly been showing signs of gathering momentum but unemployment continues to be a major concern along with the housing crisis which doesn’t appear to have bottomed out yet…municipal, state and federal debt levels also present a significant threat to the American economy…when one adds in the troubles in Japan, the ongoing European sovereign debt problem, international tensions and the possibility of an “oil shock”, the global economy is facing difficult headwinds…on the positive side, this will likely force the Fed to maintain an accommodating monetary policy for an extended period…the United States is on a fiscal path towards insolvency and policymakers are at a “tipping point,” a Federal Reserve official said today…“If we continue down on the path on which the fiscal authorities put us, we will become insolvent, the question is when,” Dallas Federal Reserve Bank President Richard Fisher said in a question and answer session after delivering a speech at the University of Frankfurt…”The short-term negotiations are very important, I look at this as a tipping point”…but Fisher added he was confident in the Americans’ ability to take the right decisions and said the country would avoid insolvency…”I think we are at the beginning of the process and it’s going to be very painful,” he added…inflation (CPI) in Britain has surged more than expected to a 28-month high (4.4%)…the news comes as the country’s finance minister puts the final touches to his 2011 budget which is due tomorrow…Britain’s retail price inflation, which is based on a longer-running index and is used as a starting point for many wage negotiations, rose to 5.5% from 5.1%, its highest since July, 1991…Canadian Finance Minister Jim Flaherty delivers the Conservatives’ budget later today with intense speculation that an election is just around the corner…the CDNX got as high as 2292 this morning but has since pulled back slightly…the 11% advance since last Tuesday’s intra-day low of 2054 has come on relatively low volume which has made us very suspicious…liquidity across the board just isn’t there today…the CDNX is facing major resistance around 2300 and the balance of this trading week is critical…as of 8:05 am Pacific, the Venture is unchanged at 2285…Vantax Resources (VAX, TSX-V) released encouraging results this morning from its promising Galloway Project west of Rouyn-Noranda…many sections grading more than 0.50 g/t Au over 100 metres were intersected…the company believes it can connect the three major zones identified so far (Galloway-Pitchvein, Moriss and Hendrick) which it’s now calling the “Golden Triangle”…VAX is currently off 1 penny at 32.5 cents…Visible Gold Mines (VGD, TSX-V) starts drilling near the Moriss Zone Discovery very soon as part of its deal with Cadillac Mining (CQX, TSX-V)…Gold Bullion Development (GBB, TSX-V) enjoyed a strong day yesterday and is currently off half a penny at 44.5 cents after hitting a high of 46.5 cents this morning…Gold Canyon Resources (GCU, TSX-V), which we’re keeping an eye on, has dipped 19 cents to $3.23…

Markets are strong across the board today with the CDNX up 36 points at 2280 as of 10:45 am Pacific.  The CDNX has now climbed a whopping 226 points or 11% over just the last five trading sessions since last Tuesday’s intra-day low of 2054.  We remain very cautious with regard to this move, however, and many of the Gold stocks are not going along for the ride.    John updates the CDNX chart below, warning of a potential 3-wave or even a 5-wave correction.

John: This morning we’re looking at a 1-year daily chart of the CDNX in order to compare the current situation with a similar one in April and May of last year.   Also, we will identify critical resistance and support levels and compare indicator readings of the two situations.

The early warning in each case was a divergence between the RSI and the Index. In April, 2010, there was a double top pattern and the RSI dipped from 85% to 60%. Similarly, in February and early March of this year there was a double top with the RSI dipping from 73% to 67%. In fact there has been a divergence between the RSI and the CDNX from January 1 to now, so there has been plenty of warning that a correction was going to occur sometime early this year. Divergences are quite reliable in identifying corrections but give no indication of timing.

The SMA(20) crossed down below the SMA(50) in the 2010 correction and is about to cross down again in the near future, another bearish factor. In each case from the start of the correction the volume declined.  When volume declines during the B wave (upward) in a correction, this is very bearish.

When estimating the length of moves in a 3-wave correction it is usual to assume the length of the C wave will be equal to the length of the A wave but often the C wave is longer due to downward momentum as we saw in the 2010 correction. By assuming the C wave will be equal to the A wave and decline from the A wave’s 50% retracement level, the estimated bottom is 1849. This is graphically displayed in Saturday’s “Week in Review Part 1”. The all-important pivotal support levels (horizontal green lines) are shown as 2200, 2060, 1900 and 1680. A breakdown of the 2060 support level would verify that this is indeed at least a 3-wave correction.

Two resistance levels are shown (horizontal blue lines) at 2300 and 2448. The red Fibonacci set between 1358 and 2448 shows that the 61.8% and 50% are very close to the 2060 and 1900 pivotal support levels, respectively. This indicates support strength at these levels.

Looking at the indicators:

In both cases the RSI formed a bullish “W” formation.  Do not be fooled by this. As you can see the 2010 correction continued to be bearish for another 2 months before the recovery began.

The Chaikin Money Flow (CMF) shows a sharp drop in buying pressure in both scenarios but after the 2010 correction the selling pressure was not heavy. The level of the selling pressure should be watched carefully because if it becomes strong the 3-wave correction could turn into a nasty 5-wave downtrend.

The ADX trend indicator has the -DI (red line) above the +DI (black line) and the ADX trend strength indicator is flat, showing that the short-term trend is bearish.

Outlook:  The chart patterns and indicators all point to the probability of a 3-wave correction that could take the CDNX down to the 1848 level. The length of this 3-wave correction could be 3-4 weeks.

Welcome to our site, or at least the initial version of it!  BMR has been online for over a year now and strictly through word-of-mouth we have built a large and loyal following. 

We’re continuing with our plans to ultimately build a very unique investment and money-management resource site that goes considerably beyond what we have now.    An important component of this site will always be original research on small and undiscovered junior resource companies, mostly in the Gold exploration space, that offer very real and significant upside potential. We are extremely selective in the companies we feature and put forward to investors – we prefer quality over quantity.

We use a combination of fundamental and technical factors in determining the value and potential of a stock.  In terms of fundamentals we look for a company with a superb project supported by strong management.  Management must possess integrity, solid ethics and a determination to succeed and build shareholder value.

At BullMarketRun (BMR) we approach the handling of money from a biblical perspective and this is an important topic we will be sharing with our readers (and listeners) as the site continues to develop. The Bible teaches so much about money and how to handle it and invest it –  there are literally thousands of verses on how we should handle the money and possessions that God entrusts us with.  By examining the life of Jesus and reading the Word of God, we can all become fully equipped to be successful investors and handle money wisely in order to make it work for us.  If it’s the other way around –  if you’re a slave to money by being in debt for instance, or if you don’t respect the value of money and spend it foolishly –  you’re in trouble and you’ll never be blessed financially.  We have a God who thinks big – He created the universe – and He wants us to think big  in every area of our lives.  When we handle money from a Biblical perpective (His money that we have been given stewardship of) He will bless our financial decisions and an increase of tenfold or a hundredfold is always possible.  This all begins, of course, with a personal relationship with Jesus Christ by accepting Him as your Lord and Savior and putting Him at the throne of your life.  It is the most important decision you’ll ever make.

God Bless,

Terry Dyer

Owner/Publisher, www.BullMarketRun.com