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John: Stocks and indicies are in many ways just like people. They have finite lives and each one develops its own character peculiarities. Identification of these characteristics in people is left to the historians and biographers who toil often with a minimum of details whereas for stocks and indicies, which are usually analyzed by technical analysts, the required amount of information is both readily available and sometimes overwhelming thanks to computers and the Internet.

As one who spends many hours perusing charts looking for these characteristics, I am constantly reminded of what technical analysis really provides for its proponents. Some investors with some very basic knowledge of TA start to use it looking for the “Holy Grail” in the form of patterns or an indicator that will make them rich every time it performs in a certain way. These people are often soon disappointed after a series of mistakes at which they declare “TA does not work”. They should learn that the true purpose of technical analysis is to provide the investor with an awareness of a future probability and in no way does it foretell the future.

The Fibonacci targets that I portray on charts are based on theoretical mathematics associated with the Fibonacci series of numbers which occur frequently in nature, thus Fibonacci targets are a probability projection. A negative divergence, for example, between price and RSI is a warning that the relative strength of the present peak in price does not have the same strength as a previous peak and that the investor can expect weakness sometime in the near future.

Tonight I’m using the “awareness” technique to analyze the TSX Venture Exchange using 3 charts.  Chart #1 immediately below is a 27-month weekly chart of the CDNX.  I have drawn vertical maroon lines at the beginning of each yearly quarter starting in January, 2009.

CHART #1

The first quarter (Q1) trading was distorted due to the recovery from the 2008 crash, thus it should be discounted. I noticed that at the beginning of each quarter after that, starting on April 1, 2009, there was a change in trading momentum in 6 out of the 8 following quarters. The only two occasions when a change did not occur was in October, 2009, and Oct., 2010.

Followers of BMR certainly noticed the abrupt change in momentum at the beginning of January this year from a bullish uptrend to a weakening in volume and buying pressure with a resultant mini sell-off and partial retracement.

Then on April 4, last Monday, there was another change to bullish momentum. What this analysis shows is that we must be aware of a probable change in momentum every 3 months in the CDNX, so based on that we can probably expect a bullish move until the end of June until Q3.

Chart #2 is a 1-month daily chart which shows that a breakout to the upside occurred Apr. 4 (vertical orange line).

CHART #2

The volume rose steadily during the week and the price continued to climb. Since the breakout the RSI has been on a steady climb and there has been a large increase in buying pressure. The ADX trend indicator shows a +DI crossover above the -DI on Apr. 4 and the trend is now in bullish orientation. The +DI is at 40, climbing and above the -DI at 26 which is falling. The ADX (black line) trend strength indicator is flat at a low value of 20. Good position at the start of a bullish move.

Chart #3 is a 1-day chart at 5-minute intervals (eastern time) for Friday, Apr. 8.  The purpose of this chart is to have a look at what happened in trading and what it can tell us about what to expect Monday morning. On Friday, the CDNX gapped up at the open to 2384, rose to a high of 2398, fell to 2376 and then retraced and closed at 2389. It gained 13.25 points (0.56%) on volume of 403.9 million shares.

CHART #3

After a burst to the upside at the open, the CDNX consolidated until 2:30 pm at which point it broke to the downside from a horizontal trend channel. It fell to 2379 until 3.30 pm at which point it reversed to the upside to conclude the week with a strong 5-minute white candle at 2389, almost at the same level as the SMA(50) 5-minute interval moving average.

Looking at the indicators, the RSI was deep in the oversold region when at 3:30 pm it reversed and finished at a bullish 59%.  Similarly, the Slow Stochastics (SS) reversed from an oversold situation to finish with the %K (black line) at 62% and the %D (red line) at 40% – bullish.   The ADX trend indicator showed that the very short trend turned bullish at the close when the +DI crossed above the -DI.

With the very strong close Friday there is a good possibility of a strong opening Monday morning.

Gold Bullion Development (GBB, TSX-V)

Gold Bullion enjoyed an outstanding week, jumping 9.5 cents or 22% to close Friday at 53 cents as the CDNX heated up…the stock got a major lift thanks to a positive recommendation from Casey’s International Speculator…GBB’s technicals have also improved considerably which includes a reversal to the upside in the 20-day SMA, ending a decline that started in mid-January…the stock is now trading within a resistance band up to 60 cents, and the 50, 100 and 200-day SMA’s are still in decline, but sentiment has changed and that’s encouraging to see…investors should keep focused on the fundamentals that drove this play so hard in 2010 – the growing LONG Bars Zone and the potential of it to develop into a multi-million ounce system…more drill results were released last week…there were no eye-popping numbers but that’s okay – virtually ever hole continues to hit near-surface mineralization and tonnage keeps building…hole #179 (72.25 metres grading 1.25 g/t Au and 156 metres of 0.61 g/t Au) shows mineralization continues to push eastward from Pit #1…six holes drilled just NE and SE of #179 under the waste pile will be important to look for (holes #198, #199, #201, #248, #250, and #253 – assays to come)…hole #97 was a nice cut likely of Vein #2, 46.7 metres grading 1.51 g/t Au…holes like #69, #124, #136 and #193 don’t get most investors excited but they’re very important to the overall picture with long intersections of lower grade (177, 113, 189 and 165 metres respectively grading between 0.31 and 0.42 g/t Au)…Frank Basa will have no problem with those numbers, keeping in mind the “upgrading” effect at Granada…structure is there…more bulk sampling and different types of drilling will quantify and improve the grade…just a few holes reported from the southwest corner of the Block Model with many more to come from there – it continues to be a promising area…there were a smattering of holes from the Eastern Extension but nothing that jumped out at us…many more results are yet to come from the Eastern Extension including the northern part where good visuals were reported earlier…it’s interesting to note that on GBB’s drill map, three step-out holes have been drilled about 90 to 145 metres north of holes #55 and #108…we’ll be watching closely for results from those holes…assay results are now in on nearly half of the 228 holes completed so far (45,000 metres) in Phases 2 and 3…47,730 metres in total have been completed since December, 2009…the case for the LONG Bars Zone remains intact…much, much more drilling lies ahead as this is all about volume (which is why we wanted to see more than two rigs by 2011)…the 43-101 this summer will be extremely helpful in terms of pushing this exciting project forward…Gold Bullion is sitting on a potentially huge near-surface Gold deposit in one of the best jurisdictions in the world for mining and exploration during the greatest bull market in history for the yellow metal…GBB has gained 657% since we introduced it to BMR readers over 15 months ago and much more excitement in our view is yet to come from the LONG Bars Zone…

Cadillac Mining (CQX, TSX-V)

Like Gold Bullion, Cadillac appears to have turned a corner and enjoyed its first weekly gain in seven weeks…it closed Friday at 23 cents, a 4-cent improvement over the previous week…volume was still light, however…drilling is now underway on ground optioned to Visible Gold Mines (VGD, TSX-V)…a total of 7,400 hectares are in that package and VGD is starting with four holes within 800 metres of Vantex Resources‘ (VAX, TSX-V) Moriss Zone discovery at its Galloway Project, 30 kilometres west of Rouyn-Noranda…the opportunity with Cadillac is immense in our view given the company’s strategic land package in northwestern Quebec, the astute acquisition of a former Gold-Silver mining camp in Utah, and the tight share structure…the current market cap is only $6 million which allows for plenty of upside potential…management’s challenge is to “seize the moment” and capitalize on the excellent opportunities the company has been blessed with in order to drive shareholder value…technically, while the chart suffered some short-term deterioration over the past month or so, the 20-day SMA at 20 cents has just swung positive and should provide support as a potential new uptrend gains traction…Richmont’s (RIC, TSX) success at its Wasamac Property west of Rouyn-Noranda is very bullish for Cadillac which is now preparing an exploration program including diamond drilling for its adjacent 100%-owned “Wasa” claims…Richmont, which released a NI-43-101 report on Wasamac April 1, is drilling an additional 35,000 metres to upgrade and further expand resources at this growing deposit where the principal structure hosting Gold mineralization plunges north at a dip between 50 and 55 degrees toward Cadillac’s claims…while there’s no guarantee, of course, in theory there’s certainly the possibility that Cadillac’s Wasa claims at depth could host a significant high-grade extension of Richmont’s deposit…this is what Cadillac will be examining…in addition they’ll be going after some highly prospective VMS targets on the property…the infamous Horne Creek fault runs right through the Wasa claims and Cadillac discovered a zone last year (by deepening the only hole they’ve ever drilled on the property) that’s interpreted to be a feeder system typical of those seen under VMS systems in the Noranda camp…Cadillac’s Wasa clams have excellent potential and we’re pleased to see they intend on proceeding with a drill program…actions speak louder than words, however, and investors are anxious to see some positive developments as quickly as possible…

Abcourt Mines (ABI, TSX-V)

Volume picked up considerably in Abcourt Thursday and Friday as the stock strengthened and closed the week up 2.5 cents at 19.5 cents…Silver prices over $40 an ounce are definitely very bullish for Abcourt…the company has arranged an 18-cent financing with Alliance Securities Inc. to raise between $3.5 and $5.5 million…boosting its cash position will help Abcourt but this is a company that does need to tell its story more effectively in order to maximize shareholder value…Abcourt is sitting on some tremendous assets that simply aren’t being fully valued by the market…the most effective strategy for Abcourt moving forward, we believe, is to re-brand itself as an exploration play only and drop any plans for putting any of its properties into production…all they need to do is drill, drill, drill at both Elder-Tagami and Abcourt-Barvue as both properties still have considerable exploration upside…as resources increase, other companies will be watching and Abcourt can then put itself into play as a potential takeover target…this would be a much simpler strategy and one that we believe would resonate with investors…Abcourt released more positive assay results March 3 from its ongoing 10,000 metre drill program at its Elder-Tagami Gold Project near Rouyn-Noranda…mineralization continues to expand to the west of the former underground Elder Mine…the Tagami area to the north, meanwhile, has untapped potential including some higher grades…the latest NI-43-101 resource estimate of 216,000 ounces was released in the summer of 2009…the possibility of Abcourt expanding that resource beyond 500,000 ounces certainly exists given the encouraging results to date (look what Richmont has done at Wasamac)…meanwhile, Abcourt released results February 15 from six more holes at its Abcourt-Barvue Silver-Zinc Property near Val d’Or and the numbers continue to be very encouraging…the holes were all drilled 150 to 200 metres from surface and five of them intersected two zones of high-grade silver and zinc…Hole #16 cut 152.26 g/t Ag over 12.7 metres…the 10,000 metre drill program at Abcourt-Barvue continues with the goal of upgrading and augmenting existing NI-43-101 reserves and resources…Abcourt-Barvue is a former producer and one of the best Silver assets in the country with nearly 20 million ounces in all-category reserves and resources (plus nearly 300,000 tonnes of zinc)…the heavy accumulation that began in Abcourt in December was no fluke in our view…this is a company with significant assets that could justify a substantially higher valuation…nearly 60 million shares of ABI changed hands on the CDNX in December and January – record volume for this stock, accompanied by a price jump from 14.5 cents…we’ve seen these type of volume surges before and they are always a very positive sign…Abcourt is being accumulated, and our best guess is that some savvy players like the assets in the ground…continued drilling success and even higher prices for Gold, Silver and zinc would be exciting developments for this stock which has a history of major moves…from mid-2005 to early 2006, Abcourt rocketed from 15 cents to nearly $1.40…

Currie Rose Resources (CUI, TSX-V)

Currie Rose gained 3 pennies last week to close at 17.5 cents, half a penny above its 50-day SMA which has now flattened out and appears ready to head north…buying pressure has increased significantly this month as demonstrated by the CMF…the 200 and 300-day SMA’s continue to rise while the declining 100-day SMA, currently at 23.5 cents, will provide some short-term resistance…the rainy season has not been as severe as usual in northwest Tanzania and that’s good news as Currie Rose prepares to launch a major drill program during this second quarter…while its Tanzanian properties are the market’s major focus, Currie Rose could benefit over the coming weeks and months from continued good exploration news from Trueclaim Exploration (TRM, TSX-V) which is currently conducting an 8,000 metre drill program at the Scadding Gold Property near Sudbury…Trueclaim, which released assay results March 4 including 15.78 metres grading 5.36 g/t Au near-surface, is in the process of earning a 51% interest in Scadding by carrying out a $2 million work commitment…Trueclaim can acquire a full 100% interest by completing a feasibility study, paying $2 million to Currie Rose, and giving Currie Rose a 3% net smelter royalty…CUI announced a joint-venture deal January 25 with Australian-based Liontown Resources for Currie’s Jubilee Reef Gold Project in Tanzania…CUI’s focus is on the Sekenke and Mabale Hills Projects, so finding a partner for Jubilee Reef made sense…the deal commits Liontown to at least 5,000 metres of drilling at the property this year which will give Currie Rose a minimum of 23,000 metres of drilling at all of its properties in 2011…while Currie Rose has had its market cap shaved considerably, from a high of nearly $40 million to the current $15 million, what hasn’t changed is the quality of this company’s project portfolio which remains as high as it ever was in our view…Currie Rose has all the cash it needs ($2 million) to complete an initial major round of drilling (10,000 metres) this spring and summer in Tanzania, so there will not be any dilution of the stock at current levels as confirmed by President and CEO Harold Smith…

Richfield Ventures (RVC, TSX-V)

It was a week of tremendous accomplishment for the Richfield group as the company announced a plan of arrangement last Monday with New Gold Inc. (NGD, TSX) for a takeover of Richfield (in NGD stock) valued at $10.38 per RVC share or $550 million…we’ve been speculating on a potential buyout of Richfield for some time now…the proposed deal is certainly a very positive fit for New Gold whose New Afton Project in the interior of British Columbia, not far from Blackwater, is on target to start production by the middle of next year…New Gold sees some obvious synergies between the two deposits…Richfield recently outlined approximately 4 million ounces of Gold in the indicated and inferred categories at Blackwater in a NI-43-101 resource estimate released March 2…will another company step into the picture and start a takeover battle for Richfield?…the possibility of that can’t be ruled out, especially with the market heating up once again and the likelihood in the minds of some that the current resource at Blackwater could be expanded significantly…we’re now living in a world where there is a fierce battle for resources of all types…Richfield gained $2.09 for the week or 26% and the stock is now up 735% since we introduced it to BMR readers in December, 2009, at $1.20…the Blackwater Gold District is still full of opportunity for investors and we encourage readers to check out the web site, www.BlackwaterGoldDistrict.com…

TSX Venture Exchange and Gold

The Venture Exchange (CDNX) broke above key resistance last week on strong volume, confirming that a new uptrend is indeed underway that has the potential of developing into something very explosive.  The CDNX out-performed all the major markets last week, gaining 91 points or 4% to close at 2389  (the Dow and Nasdaq were both flat last week while the TSX was up 78 points or just one-half of 1%). Our CDNX “buy signal” was a close above 2330 and that’s exactly what occurred Tuesday.  Volume Friday was the highest since the “turnaround day” March 15.

The 17% correction in the CDNX (2465 to 2054) was highly unusual by historical standards in terms of its duration (just 7 trading sessions).  The fact the Index has bounced back so strongly after suffering some significant technical damage is extremely bullish going forward.  There is obviously resistance at the early March high of 2465 but the bulls are now clearly in charge again and that wall could come down very quickly. All moving averages are now in bullish alignment and the RSI has considerable room to move higher.

Despite the fact the CDNX has gained 16% since the 2054 low March 15, interest in the Gold stocks really didn’t kick in until this week.  So our cautious stance toward the market from March 10 to the confirmed April 5 breakout has not resulted in many missed opportunities.  In fact, there are still plenty of bargains as we started to outline several days ago.  Visible Gold Mines (VGD, TSX-V), for example, closed at 43.5 cents March 9.  Friday, it closed at 41.5 cents and could be on the verge of breaking out above a “symmetrical triangle” as John will illustrate in a chart later today.

Our top call last week was White Tiger Mining (WTC, TSX-V), which we brought to our readers’ attention almost immediately after news came out from the company last Tuesday regarding a potential stellar hole from its Marshall Lake copper-Silver-Gold project in northern Ontario.  White Tiger exploded to 80 cents Thursday before trading was halted pending news from the company.  We’ll be a keeping a close eye on that situation Monday.  White Tiger has just 15 million shares outstanding and is led by a couple of experienced pros in Ron Coombes and Doug Mason.

The CDNX was powered last week by a major breakout in Gold as the yellow metal finally got through resistance around $1,450 and moved into new all-time high territory.  Gold closed Friday at $1,475 for a weekly gain of $56.  Silver enjoyed another strong week, climbing $3.10 an ounce to close at a new 31-year high of $40.93.  A new all-time high in Silver certainly seems achievable this year (Silver’s record high was set January 18, 1980, when it hit $49.45).

Near-term, we expect Gold to take a run to the $1,500 level before it meets some resistance and pauses to catch its breath.  In fact, John’s first Fibonacci target is $1,493 as shown in the chart below:

The fundamental case for Gold remains incredibly strong – currency instability and an overall lack of confidence in fiat currencies, an environment of historically low interest rates and negative real interest rates (inflation is greater than the nominal interest rate even in pats of the world where rates are increasing), 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, rising oil prices…the list goes on.  It’s hard to imagine Gold not performing well in this environment.  The Middle East is being turned on its head and that could ultimately have major positive consequences for Gold.

For those pundits who mistakenly claim that Gold is in a “bubble”, its interesting to note that Gold ownership as a percentage of global financial assets is only 0.7% vs. 0.2% in 2002 at the beginning of the current bull cycle (a majority of that increase has been fueled by Gold’s sharp price appreciation).

As an asset class, Gold is still very much under-owned. And the “masses” still haven’t piled into Gold stocks.  We’re not even close to a bubble in Gold.

The U.S. Congress avoided a government shutdown late Friday with an 11th hour budget deal between Republicans and Democrats.  But all of that wrangling was just a dress rehearsal for the incredible battle that is brewing over the debt ceiling and the fiscal 2012 budget.  What was cut from the 2011 budget Friday ($38.5 billion) through the end of September was peanuts compared to the TRILLIONS that will need to be slashed over the next decade.  The U.S. government is in a deep financial mess along with many governments at the state and local levels.

Meanwhile, Fed Chairman Ben Bernanke was interviewed after giving a speech in Atlanta last Monday night where he stated that the recent increase in U.S. inflation is driven primarily by rising commodity prices globally and is unlikely to persist. “I think the increase in inflation will be transitory,” Bernanke stated.  “Our expectation at this point is that in the medium term inflation, if anything, will be a bit low.  We will monitor inflation and inflation expectations very closely.”  Bernanke argued that supply and demand factors are driving energy and commodity costs higher but that these should eventually stabilize, allowing the United States to avoid any inflation troubles.  Of course this is the same individual who declared on July 1, 2005, that the U.S. was not experiencing a housing bubble.  Back then he stated, “I think what is more likely is that house prices will slow, maybe stabilize, might slow consumption spending a bit.”

Bernanke’s comments last Monday suggest the Fed Chairman is committed to maintaining historically low interest rates and completing a $600 billion stimulus program as scheduled in June, despite calls from some of his colleagues to consider cutting the stimulus effort short and perhaps raising rates beginning in the fourth quarter in light of an improving economy and rising inflation.

Crude oil prices, buoyed by Middle East unrest and very bullish supply-demand dynamics, rose to their highest level since September, 2008, on Friday.  U.S. light sweet crude jumped $2.49 Friday to close at $112.79 a barrel.

DundeeWealth’s chief economist, Martin Murenbeeld, continues to believe that Gold and other commodities are headed toward being a separate asset class, and expects to see increased levels of managed money being invested in commodities.

The U.S. Dollar continues to get pummeled with the Dollar Index off nearly three-quarters of a point Friday, closing at 74.86.

9:45 am Pacific – VGD Alert

At a time when Gold is surging to new all-time highs and the CDNX is roaring once again,  nothing excites us more than finding a junior exploration company that is aggressive, cash-rich, well-managed and determined to position itself as a major player in one of the most prolific Gold producing areas in the world – northwestern Quebec, home of the famous “Golden Highway” and a multitude of mines, deposits and fresh discoveries.

As many of our readers know, we’ve spent a great deal of time in the Rouyn-Noranda region of  Quebec over the last year with our biggest find so far being Gold Bullion Development (GBB, TSX-V) which has a potential multi-million ounce near-surface deposit on its hands at Granada.  It’ll be exciting to continue to follow the impressive GBB story.

We uncovered GBB for our readers before it became a big story.   And now we’re convinced we’re doing the same with Visible Gold Mines (VGD, TSX-V) which we added to the BMR model portfolio just one week ago.  Visible Gold Mines has a first-rate business and geological team and came out with news today that really jumped out at us, fresh on the heels of a major announcement March 31 regarding a deal with Agnico-Eagle Mines (AEM, TSX).  VGD is a company we believe that’s going to make things happen and turn some heads in the exploration and mining sector in Quebec.  Its senior geologist, Robert Sansfacon, was instrumental in the discovery of Osisko’s (OSK, TSX) massive Canadian Malartic deposit. And its President and CEO, Martin Dallaire, is a highly successful Rouyn-Noranda entrepreneur who knows how to create wealth and build a company.  He has a great feel for the mining industry and has surrounded himself with the right people in order to rapidly develop Visible Gold Mines.

Today’s news from VGD underscores the fact that this is a very eager and aggressive group that’s also going to deliver a few pleasant surprises every now and then.  We learned today the following regarding Visible Gold Mines:

1. In its December option agreement with Cadillac Mining (CQX, TSX-V), Visible Gold Mines did acquire three claims near Richmont Mines‘ (RIC, TSX-V) Wasamac deposit (Cadillac still has a 100% interest in four claims – the Gold structure hosting mineralization at Wasamac dips northerly toward those claims).  We have been very bullish on what has been developing at Wasamac and Richmont is now trading at all-time high.  VGD announced it will soon be moving a rig to its three claims near Wasamac to begin a drill program.

2. Quote from Dallaire in the news release:  “With working capital of nearly $8 million, we continue to investigate additional potential strategic land package acquisitions.”

3. Visible Gold Mines has commenced a drill program very close to Vantex Resources‘ (VAX, TSX-V) Moriss Zone Discovery at its Galloway Project (15 kilometres west of Wasamac) – within 800 metres in fact.  Given the information we’ve seen from Vantex, mineralization trends onto VGD (and CQX) ground;

4. Drilling continues at Visible Gold Mines‘ Silidor Gold Project where the company is testing for potential extensions to the past producing Silidor Mine.  A total of 21 holes have been completed so far with initial results due shortly;

5. Visible Gold Mines has provided its first NI-43-101 resource estimate for its Stadacona-East Gold Property at Rouyn-Noranda – 163,000 inferred ounces with numerous targets yet to test.  From what we’ve seen, VGD has a good opportunity to more than double that initial estimate with continued drilling.  This helps underpin the company’s value.

On March 31, Visible Gold Mines announced a major deal with Agnico-Eagle Mines on AEM’s past producing Joutel Property (the former Eagle, Eagle Ouest and Tebel Gold mines gave birth to Agnico-Eagle in the early 1970’s).  This project is going to be aggressively pursued by VGD and if anyone can unlock the value of it and make new discoveries, it’s Sansfacon who has an incredible track record as a geologist.

An exciting story is unfolding with Visible Gold Mines.  Technically, a reversal to the upside in the stock’s 50-day moving average (SMA) appears imminent which is always a major sign of a change in trend.

Piles of cash.  Strong management.  Large land package with properties of major discovery potential.  Talented geological team.  Aggressive approach with a game plan to succeed.  To us, that means opportunity which is why we’re so excited about Visible Gold Mines.

Note: As always, perform your own due diligence.  The type of stocks we cover at BMR are highly speculative.  Please read our disclaimer.  The writer holds a position in VGD.

Gold raced to a new all-time high this morning of $1,474.20…it has since pulled back slightly to $1,471 (as of 9:00 am Pacific) for a gain of $13 an ounce from yesterday…Silver has crossed the psychologically important $40 barrier and is currently up 74 cents at $40.38…crude oil is now above $111 a barrel while the U.S. Dollar Index has hit a new five-month low and is down nearly half a point at 75.08…budget difficulties continue in Washington and a government shutdown deadline is just hours away…this isn’t helpful for the greenback and there’s also a perception in the market that the Fed could be getting behind the curve on rising inflationary pressures…we should all make sure we put Ben Bernanke on each of our Christmas card lists as he’s helped many of us make lots of money on Gold stocks over the past couple of years…thank you, Ben, just keep doing what you’re doing and hopefully we can keep riding this wave…talk about climbing a wall of worry…a possible U.S. government shutdown (some would say that’s not such a bad thing), the Middle East has been flipped on its head, many countries are fighting major debt problems, the world’s third largest economy is trying to dig out of a disaster, food and energy costs continue to rise, and even a Tim Horton’s coffee is going up in price…but the market keeps going higher…the CDNX is up another 16 points this morning to 2392…this market has turned very bullish with Tuesday’s breakout through 2330…the possibility of a major near-term move from here cannot be ruled out given the current dynamics…the big test will come soon as the CDNX nears its early March high of 2465…major intrigue surrounds White Tiger Mining (WTC, TSX-V) which we immediately brought to our readers’ attention Tuesday morning when the company released very positive news regarding its Phase 2 drill program at its Marshall Lake copper-Silver-Gold-zinc Property in northern Ontario (Rainy Mountain Royalty Corp., RMO, TSX-V), was also halted as it’s a 50% partner in the project)…WTC exploded on huge volume from the 50-cent area and last traded at 81 cents when the stock was halted late in the trading session pending news…we’re watching developments from WTC and Marshall Lake very closely…the stock has just 15 million shares outstanding and the President and CEO is a gentleman we have a great deal of respect for, Ron Coombes…Gold Bullion Development (GBB, TSX-V) rocketed higher yesterday as it was added to Casey’s International Speculator’s portfolio…it’s great to see others recognize the exceptional potential of GBB…a reversal to the upside in the stock’s 20-day SMA is a very positive technical development…John updates the GBB chart below…

Gold Bullion has traded between 51 and 54 cents this morning…it’s currently at its high for the day, 54 cents, up 3 pennies on strong volume…Visible Gold Mines (VGD, TSX-V) has just come out with some interesting news…this company is getting very aggressive in its exploration in northwest Quebec…we’re still reviewing the news and we’ll be posting a separate piece on VGD later this morning…from a technical standpoint, an extremely bullish development with VGD – the 50-day SMA, which has been in decline since the beginning of January, has flattened out and now appears ready to reverse to the upside…this is almost always a sign of a pending major move…the stock is currently up half a penny at 40.5 cents…Gold Canyon Resources (GCU, TSX-V), which we first mentioned when it was below $3 last month, is off 3 pennies at $4.06 after jumping as high as $4.21…drill results demonstrate incredible potential for GCU’s Springpole Project which is located 100 kilometres northeast of the Red Lake mining camp…we suggest readers check out GCU and perform their due diligence if they haven’t done so already…other situations (not in the BMR model portfolio) that look particularly interesting right now include Levon Resources (LVN, TSX-V), Great Panther Silver (GPR, TSX) and Revett Minerals (RVM, TSX)…

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

Gold has hovered between $1,452 and $1,464 so far today…as of 7:50 am Pacific, the yellow metal is unchanged at $1,459…Silver is just 4 pennies lower at $39.47 while the U.S. Dollar Index is essentially unchanged at 75.60…the sharp jump in Silver prices during 2010 was the result of big increases in both investment and industrial-fabrication demand, according to the World Silver Survey 2011 released by the Silver Institute today…global Silver investment rose by 40% last year to 279.3 million troy ounces, said the report, for which data was compiled by the consultancy GFMS…this resulted in a net flow into Silver of $5.6 billion, almost double the amount from 2009…meanwhile, total fabrication demand rose 12.8% to a 10-year high of 878.8 million ounces in 2010, led by industrial uses…one of our favorite Silver plays continues to be Great Panther Silver (GPR, TSX) which has been under some selling pressure lately despite the big jump in Silver prices…it’s up slightly this morning to $3.88 with a financing expected to close next week…GPR has excellent technical support around $3.50, in the vicinity of its 50-day SMA, but that kind of a bargain is probably wishful thinking…Wildcat Silver (WS, TSX-V), which we’ve mentioned here recently, continues to perform well with impressive drill results from its flagship Hermosa Project in Arizona…WS got as high as $2.70 in early trading but has since pulled back to $2.52 for a loss of 10 cents…we suggest investors also perform due diligence on Levon Resources (LVN, TSX-V) which is up 8 pennies this morning at $2.05…the number of investors with a bearish outlook plunged by more than a third in one week according to a widely followed investor survey released yesterday, the largest amount of bears to throw in the towel in this poll since 2003…Middle East turmoil, debt problems in many parts of the world, a disaster in Japan and even a potential end to the Federal Reserve’s quantitative easing program has failed to keep the market down…bears collapsed to just 15.7 percent of those surveyed from a 23.1% part of the pie just one week ago, according to the weekly survey of financial newsletter writers by research firm Investors Intelligence…that 32 percent drop is the biggest in a single week since a 37 percent switchover in 2003, according to Bespoke Investment Group’s analysis of the Investors’ Intelligence data…bullish investors now make up 57% of the total pie in this week’s survey but that can also be a danger sign, not necessarily for the near-term but for later this year…at the October, 2007, top, the bull reading was 62%…U.S. jobless claims fell slightly more than expected last week as the American labor market continues to firm…the European Central Bank has raised interest rates by 25 basis points to 1.25%, announcing its first hike since July, 2008, to counter firming inflation pressures in the 17-country euro zone…The ECB is concerned that firm oil prices, near two-and-a-half year highs, could boost inflation expectations and financial markets are pricing in two further quarter-point rises in interest rates this year to follow today’s move…the rate decision came less than 24 hours after Portugal announced it was seeking European Union support for its debt woes, a decision long expected by financial markets…The Bank of England, meanwhile, has held interest rates at a record-low 0.5% despite a surge in inflation…most economists view Britain’s economic recovery as too fragile to withstand higher rates at the moment…Global food prices came off record highs in March, falling for the first time in eight months following unrest in the Arab world and Japan’s earthquake, but new increases are in sight as demand grows and supplies tighten, according to the UN Food and Agriculture Organization…the CDNX is up another 15 points at 2378…Adventure Gold (AGE, TSX-V) released good results from two more holes this morning from its recently completed Phase 1 drill program at the Pascalis Colombiere Gold Property near Val d’Or…hole #17 intersected four separate zones of mineralization at depths ranging from 6 metres to 187 metres (5.7 g/t Au over 4.3 metres, 4.6 g/t Au over 5.7 metres, 12.9 g/t Au over 8 metres, and 5 g/t Au over 6.1 metres)…hole #16 intersected 5.5 g/t Au over 5.9 metres…results from five more holes are pending…follow-up drilling will commence once all assays have been received and reviewed…a 43-101 resource calculation is planned for later this year…AGE is currently off 2 pennies at 70 cents…it’s chart is a picture of beauty so this is a stock to watch closely…at BMR, we’ve had some success identifying significant discoveries at early stages and we’re quite intrigued by what we see developing at White Tiger Mining’s (WTC, TSX-V) Marshall Lake Property in northern Ontario…Marshall Lake is an advanced-stage copper, Gold and Silver project that several majors have worked on over the years…on Tuesday, as we reported here, the company announced visuals from hole #21 (“longest and most continuous mineralized drill intersection that has been completed on the Marshall Lake property to date”) which suggest this hole has the potential to be stellar…on speculation alone, trading in this stock could get quite interesting over the next week or two (rush assays from ALS Chemex)…WTC is currently up 6 cents at 57 cents after climbing as high as 61 cents this morning (it hit 67 cents Tuesday)…what we find very encouraging from a technical perspective is that the stock has closed above its Tuesday opening price of 48 cents (it gapped up from 35 cents) for two consecutive days…WTC has only 15 million shares outstanding…the heavy volume Tuesday and Wednesday has likely moved stock from weak hands into strong hands as WTC, up until now, has had little liquidity in its nearly 4-year existence…the President and CEO is Ron Coombes (Doug Mason is the Chairman)…both are industry veterans with successful track records…Gold Bullion Development is up half a penny at 44 cents…John is working on an updated chart for GBB…Currie Rose Resources (CUI, TSX-V) is looking much healthier from a technical standpoint as the company gears up for the start of its 2011 exploration program in Tanzania…CUI closed yesterday at 17.5 cents and is unchanged so far this morning on very light volume…

Gold hit another new record high this morning of $1,464 with bulls now targeting $1,500 per ounce over the short term…as of 7:30 am Pacific, the yellow metal is up $4 an ounce at $1,461…Silver is 43 cents higher at $39.71 while the U.S. Dollar Index is off over one-quarter of a point to 75.58…some analysts continue to believe that Gold is somehow in a “bubble” which in our view displays a complete misunderstanding of the dynamics driving this market…Yogi Dewan, founder and CEO of Hassium Asset Management, told CNBC the other day that “this is a bubble and a fear trade…as soon as the recovery takes hold and the interest rate cycle changes, you will see mass outflows from Gold into riskier assets”…Yogi is about to find out that in reality the bubble hasn’t even started yet in Gold…he’s correct in stating that there is a “fear trade” in Gold, which will likely only intensify, but he doesn’t recognize the “love trade” (mostly from the emerging markets and the Middle East) and how critically important a factor that is in terms of what’s driving Gold…Frank Holmes of U.S. Global Investors has written and spoken so powerfully about the impact of the “love trade”…in addition, stocks are not showing that Gold is in a bubble…the TSX Gold Index, even after yesterday’s sharp advance, is still less than 10% above its 2007 high…the CDNX is 1,000 points or 30% below its 2007 high…and one of the most important facts of all is that Gold ownership as a percentage of global financial assets is only 0.7% vs. 0.2% in 2002 at the beginning of the current bull cycle (a majority of that increase has been fueled by Gold’s sharp price appreciation)…as an asset class, Gold is still very much under-owned as the chart below illustrates….

The CDNX blasted through important resistance around 2330 yesterday which was a very bullish development…it appears very likely the Index will now challenge the early March high of 2465…as of 7:30 am Pacific, the CDNX is up another 16 points at 2370…Gold Bullion Development (GBB, TSX-V) released more drill results from Granada following the market close yesterday…while tonnage continues to build in the LONG Bars Zone, there were no eye-popping numbers out of the 25 holes…hole #179 (72.25 metres grading 1.25 g/t Au and 156 metres of 0.61 g/t Au) shows mineralization continues to push eastward from Pit #1…six holes drilled just NE and SE of #179 under the waste pile will be important to look for (holes #198, #199, #201, #248, #250, and #253 – assays to come)…hole #97 was a nice cut likely of Vein #2, 46.7 metres grading 1.51 g/t Au…holes like #69, #124, #136 and #193 don’t get most investors excited but they’re very important to the overall picture with long intersections of lower grade (177, 113, 189 and 165 metres respectively grading between 0.31 and 0.42 g/t Au)…Frank Basa will have no problem with those numbers, keeping in mind the “upgrading” effect at Granada…structure is there…more bulk sampling and different types of drilling will quantify and improve the grade…just a few holes reported from the southwest corner of the Block Model with many more to come from there – it continues to be a promising area…there were a smattering of holes from the Eastern Extension but nothing that jumped out at us…many more results are yet to come from the Eastern Extension including the northern part where good visuals were reported earlier…it’s interesting to note that on GBB’s drill map, three step-out holes have been drilled about 90 to 145 metres north of holes #55 and #108…it’s important to keep an eye on results from those holes…nothing was mentioned about drilling commencing further east in LONG Bars Zone 2 (Aukeko)…February’s news stated a drill was being moved out there in March…Aukeko is a key target…assay results are now in on nearly half of the 228 holes completed so far (45,000 metres) in Phases 2 and 3…47,730 metres in total have been completed since December, 2009…the case for the LONG Bars Zone remains intact…much, much more drilling lies ahead as this is all about volume (which is why we wanted to see more than two rigs by 2011)…the 43-101 this summer will be extremely helpful in terms of pushing this exciting project forward…GBB is currently off 2.5 cents at 44 cents…a potential imminent turnaround in GBB’s 20-day SMA would be a bullish technical development…Currie Rose Resources (CUI, TSX-V) has closed above its 50 and 200-day SMA’s for the first time since January…the 50-day is also ending a nearly three-month decline…CUI is gearing up for a new exploration season in Tanzania beginning this quarter and we are particularly excited about the Sekenke Project which will be drilled by Currie Rose for the first time…Sekenke runs in between and surrounds two former high-grade Gold mines including one of Tanzania’s original producers…CUI is currently off a penny at 17 cents…we suggest investors perform due diligence on a couple of situations we’ve never mentioned before – Levon Resources (LVN, TSX-V) and Revett Minerals (RVM, TSX)…Revett is an established Silver-copper producer in northwestern Montana (Troy Mine) with a massive Silver deposit (Rock Creek) that still faces some hurdles in terms of permitting…the company is hopeful however regarding Rock Creek…Levon, meanwhile, is making excellent progress in developing its large Cordero Project (Silver, Gold, lead, zinc) in Mexico…both stocks have very strong charts…White Tiger Mining (WTC, TSX-V) is looking very interesting…the company’s first hole of its Phase 2 program at its Marshall Lake Property in northern Ontario could be a stellar one as reported yesterday in a news release that sent the stock soaring to as high as 67 cents…Marshall Lake is an advanced stage copper, Silver and Gold project and we like the chances of a significant discovery…with only 15 million shares outstanding, this one has the potential to really take off and speculation surrounding hole RMZ-11-21 will keep interest high…this stock has been around since 2007 and has never had liquidity until now, so likely many investors took advantage of yesterday’s move to cash out simply to cash out…they weren’t paying much attention to the significance of the news…the stock stayed above its opening price yesterday of 48 cents, closing at 48.5 cents, and has held support at 48 cents so far today…it’s currently up 1.5 cents at 50 cents…the President and CEO is Ron Coombes who’s had a lot of success in the industry…no urgent need for a financing as the company raised $1.3 million in February…this is a good story that could develop nicely in the days and weeks ahead…Seafield Resources (SFF, TSX-V) now has two rigs working at its Quinchia Project in Colombia…we believe the second quarter will be more kind to Seafield after a disappointing first quarter in terms of the share price performance…Quinchia has very strong geological merits but investor patience is certainly required with SFF as it is with many companies at similar stages of exploration…John’s chart below does give some near-term hope….Seafield is currently off half a penny at 34 cents…