BullMarketRun.ca

Welcome to our site, or at least the initial version of it!  BMR has been online for nearly three years and strictly through word-of-mouth we have built a 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.  While we focus a great deal on the Gold and Silver markets and trends in the global economy, and of course the technical health of the TSX Venture Exchange (CDNX), an important component of this site will always be original research on undiscovered junior exploration companies or small producers, mostly in the Gold and Silver 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.  However, investors must understand that these are still highly speculative situations and entail considerable risk, volatility and unpredictability.  Our stock coverage is for informational and entertainment purposes only and must not be viewed or interpreted as “buy”, “sell” or “hold” recommendations. We are not Registered Securities Advisers. Our opinions can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Adviser operating in accordance with the appropriate regulations in your area of jurisdiction. Always perform your own due diligence and please read our disclaimer at the bottom.

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.  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

Disclaimer:

BullMarketRun.com (BMR) is completely independent from any companies it covers.  BMR accepts no compensation of any kind from any groups, individuals or corporations for coverage of any company mentioned on this site.  We accept no advertising either.  Our stock coverage is for informational and entertainment purposes only and must not be viewed or interpreted as “buy”, “sell” or “hold” recommendations. No investment opinion or other advice is being rendered on any stock or company. We strongly recommend that you consult with a qualified investment adviser, one licensed by appropriate regulatory agencies in your legal jurisdiction, and do your own due diligence and research before making any investment decisions. The stocks we cover, by definition, are highly speculative and potentially very volatile. Investors are cautioned that they may lose all or a portion of their investment if they make a purchase or short sale in these speculative stocks.  We are not Registered Securities Advisers. Our opinions can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Adviser operating in accordance with the appropriate regulations in your area of jurisdiction. It should be assumed that BMR personnel, writers and their associates may hold or dispose of or trade in positions in any securities mentioned herein at any time.  Owner/Publisher of BullMarketRun.com is Terry Dyer of Langley, British Columbia.

Forward Looking Statements:

All statements in BMR’s reports, other than statements of historical fact, may be forward-looking statements. These statements relate to future events or future performance. Forward-looking statements are often but not always identified by the use of words such as “seek”, “anticipate”, “plan”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “predict”, “potential”, “targeting”, “intend”, “could”, “might”, “should”, “believe” and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements.

TSX Venture Exchange and Gold/Silver

The Venture Exchange recorded its third straight weekly advance, climbing another 19 points (1.5%) to close Friday at 1252.  From a technical perspective, the Venture is currently in an uptrend with 10 and 20-day supporting moving averages at 1228 and 1208, respectively.  We believe we correctly identified the yearly low in this market at 1154 intra-day June 28.  A rounding bottom formation, and strong evidence of sellers’ exhaustion, is more convincing evidence that the risk/reward ratio with the Venture at the moment has turned very favorable.  “Smart money” has been jumping in recently but the general public is still nervous about the speculative market – a good sign.  When they’re all excited and everyone’s buying, that’s the time to aggressively lock in profits.  Back in late June, I remember having lunch with a very sophisticated and successful pro trader on Howe Street who said market sentiment at that point was about the worst he’d seen in 40 years.  He also predicted a bottom had formed and that the Venture would have a powerful finish to the year.  We’ll see what happens, but those were words of wisdom from a wealthy investor who I suspect will be proven right.

Below is a 4-month daily chart from John that shows strong buying pressure but temporary resistance right around Friday’s close at 1252.  It’ll be interesting to see what happens early in the coming week, but some minor consolidation and a test of the 10-day SMA certainly can’t be ruled out.  That’s normal in any uptrend.  Volume does need to increase significantly for this market to really take off and bust through stiffer resistance at the declining 100-day SMA just under 1280.  That’s a scenario we expect will unfold in September.

Two interesting things to point out – the 50-day SMA has flattened after being in decline since early April, and a reversal to the upside appears imminent – anytime within the next 5 to 10 trading sessions.  The 1000-day SMA has flattened out at 1500 after a 4-year decline.  This is highly important if you look at this SMA from a long-term perspective.  Chances are, it will begin rising again by October which would be a powerfully bullish sign for the Venture.  Watch this reliable indicator very closely.  Aggressive global central bank action, coupled with the right political dynamics out of Washington and the euro zone, could produce a “risk-on” environment and a big move higher in the markets in the fourth quarter.  Keep in mind, there is a lot of cash sitting on the sidelines – consider that the market’s fuel reserve.

Gold

Gold staged a powerful advance last week, busting through two critical resistance levels ($1,620 and $1,640) and closing Friday at $1,671 for a gain of $55 an ounce. The bulls are back in control (Gold is at its highest level in 16 weeks) and this does mean higher prices are coming, but some minor consolidation is very possible before we see the yellow metal power through $1,700.  You can see on John’s six-month chart below that short-term overbought conditions may need to unwind modestly to set the stage for another sharp advance.  Bloomberg reported on Thursday that Gold investors were the “most bullish in nine months” as its survey of 29 of 35 analysts indicated that they expected prices to rise – only three were bearish toward the metal.

It’s interesting to point out that the Gold-to-Brent crude oil ratio has historically averaged about 16.5x. According to this ratio and using an approximate Brent price of $115 per barrel, the price of Gold should be roughly $1,900, on par with its all-time high close in 2011.

Lately, we’ve been yelling from the rooftop with regard to Silver and how it was oversold technically and ready to explode from the $26-$27 support level.  Well, Silver finally did explode last week, gaining $2.73 an ounce to close at $30.82.  A powerful “Wave 5” move appears to be underway in Silver which is also now rising faster than Gold (expect that trend to continue).  John will have an updated long-term Silver chart in Monday’s Morning Musings.  After last week’s strong advance, a slight pullback is very possible but smart traders and investors will use that to add to positions and accumulate shares in quality Silver stocks – producers and explorers.

Copper edged up a nickel last week to $3.41.  Crude Oil gained 14 cents to $96.01 while the U.S. Dollar Index fell a full point to 81.62.

The “Big Picture” View Of Gold

As Frank Holmes so effectively illustrates at www.usfunds.com, Gold is being driven by both the Fear Trade and the Love Trade.  The transfer of wealth from west to east, and the accumulation of wealth particularly in China and India, is having a huge impact on Gold.

The fundamental case for Gold remains incredibly strong – currency instability and an overall lack of confidence in fiat currencies, governments and world leaders in general, an environment of historically low interest rates and negative real interest rates that won’t end anytime soon (inflation is greater than the nominal interest rate even in parts of the world where rates are increasing), money supply growth, 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, and inflation concerns…the list goes on.  Massive central bank intervention appears increasingly likely to prevent a breakup of the euro zone and to kick-start the global economy.  It’s hard to imagine Gold not performing well in this environment.

Gold is pulling back slightly after seven straight gains…as of 6:20 am Pacific, the yellow metal is down just $1 an ounce at $1,669 after falling as low as $1,662 overnight…Silver has recouped its overnight losses and is now essentially unchanged at $30.56…Copper is flat at $3.46…Crude Oil has reversed and is now up 19 cents at $96.46 while the U.S. Dollar Index has gained one-quarter of a point to 81.63…

Gold Demand Triggers Opening Of Major New Vault

The Brink’s Co. (BCO, NYSE) which stores and transports bullion, is set to open one of the world’s largest precious metals vaults in the London area within the next month, at a time when investors’ Gold holdings are at a record…the firm plans to open the facility with a major London clearing company and is considering opening another vault next year, according to the U.K. managing director for Brink’s…the vault will be able to hold a “very substantial” amount of metal according to the report from Bloomberg…

Republican Party To Re-Examine Gold Standard

The Gold standard has returned to mainstream U.S. politics for the first time in 30 years, with a “Gold commission” set to become part of official Republican party policy according to a Financial Times report…drafts of the party platform, which it will adopt at a convention in Tampa Bay, Florida, next week, call for an audit of Federal Reserve monetary policy and a commission to look at restoring the link between the dollar and Gold…the move shows how five years of easy monetary policy – and the efforts of congressman Ron Paul – have made the once-fringe idea of returning to Gold-as-money a legitimate part of Republican debate…the proposal is reminiscent of the Gold Commission created by President Ronald Reagan in 1981, 10 years after Richard Nixon broke the link between Gold and the dollar during the 1971 oil crisis…that commission ultimately supported the status quo…some analysts were quick to throw cold water on the latest rumblings from the Republican Party on a possible return to the Gold standard…“I think it’s absolutely nonsensical,” Moorad Choudhry, head of treasury at the corporate banking division of the Royal Bank of Scotland told CNBC this morning…“There’s a very good reason they unhooked it in 1971, because their deficit didn’t enable them to maintain it with the supply of Gold…in fact, is there enough gold in the world to back the U.S. debt?”…U.S. federal debt grew to $15 trillion at the end of 2011 from around $400 billion in 1971…

Today’s Markets

The Chinese stock market has slumped to levels last seen near the depths of the global financial crisis as fears build about waning economic growth (manufacturing surveys from China and the euro zone depicted a bleak outlook) and some uncertainty reigns over the prospect for central bank support from Beijing and Washington…the Shanghai Composite fell 21 points or 1% overnight to 2092, its lowest close since March, 2009…European shares are off mildly this morning while stock index futures in New York as of 6:00 am Pacific are pointing toward a slightly negative to flat open on Wall Street…speaking separately over the past day, St. Louis Fed President James Bullard, regarded as a policy centrist, played down chances of imminent easing to bolster the U.S. economy, while Chicago Fed President Charles Evans, a policy dove, supported taking more action… neither official has a vote on the Fed’s policy-making committee…meanwhile, the American Association of Individual Investors said yesterday that poll respondents are now 41% bullish, the first break above the long-term average of 39% since March…

Venture Exchange

The Venture Exchange was in negative territory most of yesterday but staged a late-day comeback that took it to its third straight positive day, a modest 2-point gain to 1248…the Index is currently up 15 points for the week after a 42-point jump the previous week…the 50-day moving average (SMA) has flattened out at 1200 and could begin reversing to the upside as early as next week…the 50-day has been in decline for most of the time since the bear market began in March, 2011 – the only exception being the February-March period this year…

China Confronting A Glut?

The New York Times is reporting that after three decades of torrid growth, China is encountering an unfamiliar problem with its newly struggling economy: a huge buildup of unsold goods that is cluttering shop floors, clogging car dealerships and filling factory warehouses…the glut of everything from steel and household appliances to cars and apartments is hampering China’s efforts to emerge from a sharp economic slowdown…it has also produced a series of price wars and has led manufacturers to redouble efforts to export what they cannot sell at home…the severity of China’s inventory overhang has been carefully masked, according to the Times, by the blocking or adjusting of economic data by the Chinese government – all part of an effort to prop up confidence in the economy among business managers and investors…but the main non-government survey of manufacturers in China showed yesterday that inventories of finished goods rose much faster in August than in any month since the survey began in April, 2004…the previous record for rising inventories, according to the HSBC/Markit survey, had been set in June…May and July also showed increases…

U.S. Dollar Chart

The U.S. Dollar Index has been under pressure recently but it is now within a support band between 81 and 81.5…RSI(14) is also at support on the 6-month daily chart, so it’s quite possible we could see the greenback rally somewhat from current levels as Gold catches its breath after a substantial run-up recently…any advance in the Dollar Index, however, could be constrained by a downtrend line on the chart as shown by John below…if the support band doesn’t hold, then look for Gold to explode much higher…

Mineral Mountain Resources (MMV, TSX-V)

Yesterday we mentioned a new company, Mistango Resources (MIS, TSX-V) which is worthy of our readers’ due diligence (more on Mistango next week), and this morning we’d like to put forward Mineral Mountain Resources (MMV, TSX-V) as its chart and recent news have caught our attention…at the end of May this year, Mineral Mountain announced it had struck a deal with a 120-year old private mining company (Holy Terror) that owns 14 patented mineral claims and 22 unpatented mineral claims totalling 532 acres (215 hectares) located along the Homestake Gold belt in the Keystone Mining District in the Black Hills area of South Dakota…MMV has an option to acquire up to a 75% interest in the Holy Terror property, consisting of six former high-grade producers, and since then MMV has expanded the project by acquiring the 190-acre Bullion Mine Property from privately-held Energy Fuels Corporation…Bullion Mine adjoins the Holy Terror property and is another past producer…it appears MMV has consolidated a very attractive land package and has also just completed a remote sensing airborne light detection and ranging (Lidar) survey, and a high-resolution helicopter-borne tri-axial magnetometer survey over the area – never before conducted over this Gold district…

Technically, MMV is showing a lot of strength though it will need good volume to churn through 90 million outstanding shares…the stock closed up 2.5 cents yesterday at 26.5 cents…below is a 2.5-year weekly MMV chart from John…

GoldQuest Mining (GQC, TSX-V) Chart Update

Prodigy Gold (PDG, TSX-V) Update

Prodigy Gold (PDG, TSX-V) continues to build an impressive resource at its Magino Gold Project in northern Ontario (nearly 6 million ounces)…higher Gold prices and a better environment for the junior sector over the balance of the year would be very bullish for PDG which has a healthy balance sheet and a positive overall chart with a supporting rising 500-day moving average (SMA) at 57 cents…currently, however, PDG is at or near resistance and will likely need to consolidate its recent gains for at least a brief period…PDG closed down a penny yesterday at 67 cents…

Note: Jon holds a share position in GoldQuest Mining.

Gold, powered by expectations of aggressive central bank action to kick-start economies across the globe, climbed as high as $1,668 overnight after pushing through technical resistance in the $1,640’s yesterday…as of 6:15 am Pacific, the yellow metal is up $11 an ounce at $1,665…Silver, rising faster than Gold now to reverse a recent trend in place since the spring, is 74 cents higher at $30.57, just slightly above its 200-day moving average (SMA)…Copper is up a nickel to $3.49…Crude Oil has gained 22 cents to $97.48 while the U.S. Dollar Index is flat at 81.46…

Last night, we posted John’s updated short-term charts on both Gold and Silver…how Gold handles the $1,660 area today and tomorrow will be interesting to watch…however, all things considered, the yellow metal seems destined to run into the low $1,700’s – at a minimum – over the next few weeks, supported by highly probable central bank action from the ECB and the Fed as well as new potential monetary and fiscal measures from China…

Below is a long-term Gold chart from John (10-year monthly) that shows how the RSI(14) has reversed after nearly touching its 2008 low…there’s plenty of room for Gold to move higher over the remainder of 2012 before getting into overbought territory on the monthly chart…

The long-term Silver chart shows how RSI(2) has made a strong recovery after reaching oversold levels not seen since the 2008 Crash…based on historical patterns, the RSI(2) can be expected to move further into the overbought zone – a condition that could exist for an extended period…

Today’s Markets

Asian markets were in the green overnight while European shares are mixed this morning…stock index futures in New York as of 6:15 am Pacific are pointing toward a slightly negative open on Wall Street…the number of Americans filing new claims for jobless benefits unexpectedly rose last week, suggesting the labor market is healing too slowly to make much of a dent in the unemployment rate which is more ammunition for the Fed…the Venture Exchange closed up 6 points at 1246 yesterday…a convincing move on strong volume through the 1250 area – inevitable, we believe, but not necessarily immediately – would be another very bullish sign as the Index does face resistance just below 1250 at current levels…

Fed Moving Closer To Action

The Federal Reserve is set to ease policy unless there is a sharp change in economic data after the minutes of its August meeting, released yesterday morning, revealed a strong consensus for action…“Many members judged that additional monetary accommodation would likely be warranted fairly soon unless incoming information pointed to a substantial and sustainable strengthening in the pace of the economic recovery,” say the minutes of the rate-setting Federal Open Market Committee…that is an unusually clear statement of the FOMC’s views about future action and sets a tough condition for it to change course and keep policy on hold..payrolls data for August will be released shortly before the Fed’s September meeting (Sept. 12-13) but even if jobs growth is better, it is unlikely to amount to “a substantial and sustainable strengthening” in the pace of recovery…in another indication that the FOMC is ready to act, it discussed a range of tools with which to ease monetary policy further, including a possible third round of quantitative easing…under QE3, the Fed would buy more long-term assets…according to the minutes: “Many participants expected that such a program could provide additional support for the economic recovery both by putting downward pressure on longer-term interest rates and by contributing to easier financial conditions more broadly”…in a hint that the Fed might consider an open-ended program of asset purchases, in which it did not specify the total amount up front, the minutes say that “many” participants thought that any new program should be “sufficiently flexible to allow adjustments”…Fed Chairman Ben Bernanke speaks August 31 at the Fed’s annual Jackson Hole symposium where he’s expected to give strong clues as to the Fed’s plans for further easing as he did two years ago…

China Slowdown Continues

A preliminary gauge of manufacturing activity in China today sent another warning signal on the state of the world’s second-largest economy…the preliminary HSBC China Manufacturing Purchasing Managers Index fell to a nine-month low of 47.8 in August, compared with a final reading of 49.3 in July…a reading below 50 indicates contraction of manufacturing activity from the previous month, while one above 50 indicates growth…the preliminary August reading marks the 10th straight month the index has been in contractionary territory, signaling extended difficulty for manufacturers…this suggests that more monetary easing is likely from China in the near future as well as additional fiscal support to stabilize growth…

Euro Zone Recession Looms

The euro zone will almost certainly slip back into recession, according to surveys of business activity that highlighted how Germany’s economy is being dragged into the region’s crisis…an index of purchasing managers in the euro zone showed a seventh consecutive private-sector contraction…the “flash”, or preliminary, August figure for the bloc was broadly unchanged at 46.6 from 46.5 a month earlier but the decline in German output accelerated…Markit Economics, the compiler of the index, said the readings, on top of gloomy data in July, would be consistent with a fall of 0.5% or 0.6% in euro zone gross domestic product in the third quarter…euro zone GDP shrank 0.2% in the three months to June…

Mistango Resources (MIS, TSX-V)

Readers are advised to perform their due diligence on little-known Mistango Resources (MIS, TSX-V) which continues to deliver interesting results from its Omego Gold Project, 18 miles east of Kirkland Lake and 4 miles west of the former Kerr Addison Mine…results from six more holes from an open-pit area were released yesterday and included 1.5 g/t Au over 55 metres and 2.4 g/t Au over 19.5 metres…in addition, drilling is currently testing the down-plunge extensions of the Omega deposit and the Lake Zone where two shafts are already in existence…meanwhile, recent metallurgical testing provided very positive results including 99% recovery by gravity flotation…Mistango completed a $2.5 million financing with Queenston Mining (QMI, TSX) earlier this summer and Queenston now holds 41% of the 38 million MIS outstanding shares…Mistango jumped a nickel yesterday to 25 cents on volume of 122,000 shares…

GoldQuest Mining (GQC, TSX-V) Update

GoldQuest Mining (GQC, TSX-V) took a rather strange end-of-the-day hit yesterday and finished down 27 cents at $1.60…the decline during the last hour was likely magnified by stop-losses and high-frequency trading, and it’s also possible a fund just decided to take some profits off the table…the company has always been very guarded with drill data so it’s highly unlikely there was any kind of a leak in that regard…it’s important to point out that GoldQuest has been volatile in its incredible climb from under a dime to an all-time high of $2.03 on Wednesday…the stock dropped 23% over a two-day period in June and by more than 40% over a 17-day stretch that month…it also fell by 16% over two days in July…so while the 21% drop over the last couple of trading sessions is unnerving for some investors, it’s important to put it into proper perspective as normal trading activity for this stock…below is an updated GQC chart from John showing strong support around current levels…the EMA-20 is at $1.51…

Rainbow Resources (RBW, TSX-V) Update

The surge in Silver bodes extremely well for Rainbow Resources (RBW, TSX-V) which is focusing on its flagship International Silver Property at the moment, followed by another high-grade Silver target – the Gold Viking Property…Rainbow continues to trade impressive volume, which is drawing many new eyes to this intriguing play, and as John’s charts have pointed out, it’s just a matter of time before the stock plows through the 24 to 27 cent resistance band…the 100-day moving average (SMA) has flattened out and appears ready to reverse to the upside which should provide fresh fuel for another powerful advance…all other moving averages are in bullish alignment…news is expected very soon from RBW as drilling continues at the International…

Scorpio Mining (SPM, TSX)

A Silver producer to keep an eye on is Scorpio Mining (SPM, TSX) which has jumped 50% since trading as low as 53 cents a week ago (investors are waking up to bargains)…Scorpio became extremely oversold recently and could still climb quite a bit higher over the coming weeks, given the look of the chart, especially in a bullish Silver price environment…

Richmont Mines (RIC, TSX) Chart Update

When a stock becomes as oversold as Richmont became recently, you simply back up the truck and load up…Richmont has put in an important bottom at $3.30, and the stock jumped another 25 cents yesterday to close at $4.29…

Note: John and Jon both hold share positions in Rainbow Resources.  Jon also holds a position in GoldQuest Mining.

9:30 pm Pacific

Both Gold and Silver shot higher today and staged important breakouts through key resistance areas.  As of 9:30 pm Pacific, the yellow metal is up another $10 an ounce to $1,664 while Silver has cracked the $30 level and is currently up 40 cents to $30.23. The minutes from the Fed’s last meeting, released this morning, renewed expectations that the Fed is ready to take more easing steps, including another possible round of quantitative easing or asset purchases.

A new uptrend in Gold is gathering momentum after today’s move through resistance in the $1,640’s.  While there is also some resistance around $1,660, there appears to be nothing stopping Gold from testing the low $1,700’s at a minimum in the coming few weeks as shown in John’s chart below.

As regular BMR readers know, we are extremely bullish regarding the “Big Picture” and long-term outlook for Silver which is now rising faster than Gold for the first time in several months.  Following a significant breakout, Silver’s new support is between $28.40 and $29.00 as shown in John’s chart below.  The 200-day moving average (SMA) at $30.53 can be expected to provide strong resistance for now.  John’s latest Fibonacci target level for Silver (no time line) is $78.

John will have long-term charts for both Gold and Silver as part of tomorrow’s Morning Musings.

After yesterday’s important move, Gold has traded in a range of $1,637 to $1,647 (the June high) so far today…as of 6:25 am Pacific, the yellow metal is up $2 an ounce at $1,641…Silver has gained another 12 cents to $29.45…Copper is a penny higher at $3.44…Crude Oil has lost 33 cents to $96.51 while the U.S. Dollar Index is up one-fifth of a point to 82.06…

Gold, at a time of seasonal strength, is on the edge of a significant breakout after being range-bound in choppy action on the daily chart for three months…volume needs to pick up some more in Gold, as well as in Silver, but it’s likely just a matter of time before both explode to the upside with traders/investors anticipating bold action from the European Central Bank next month and possibly from the Federal Reserve…

A bullish interpretation of Gold at the moment is supported by renewed strength in the euro…below is a 2.5-year weekly chart of the euro from John showing patterns that suggest a real reversal in the euro is underway…this will need some more time to play out, but there’s evidence we’re seeing more than just a bounce in the euro…note how the RSI(14) is rising from a double bottom at previous support…there are other technical factors as well that support a higher euro in the near future…

TSX Gold Index

The TSX Gold Index is looking a lot healthier from a technical standpoint these days, showing increased up momentum, and there seems to be little doubt that the Index put in an important bottom in mid-May at 266…the next major task for Gold Index is to clear a resistance band between 310 and 315…the Index, currently supported by rising 10 and 20-day moving averages, climbed 5 points yesterday to close at 306…a reversal to the upside in the 50 and 100-day moving averages appears quite possible by early September, within the next couple of weeks…below is an updated 6-month daily Gold Index chart from John…

Today’s Markets

Asian markets were modestly lower overnight…Japan’s exports slumped the most in six months in July as sales to a debt-ridden Europe and a sluggish China dropped…that gave investors reason to lock in some profits on the Nikkei which has been rallying strongly recently…China’s Shanghai Composite index fell 11 points to 2108, only a fraction above its lowest close since March, 2009…Reuters reported that Chinese steel mills have decided to default or defer shipment of up to 4 million tonnes of iron ore because of slumping prices which are at 32-month lows…European shares are weaker by as much as 1% this morning with cyclical stocks suffering due to the Japan export data and renewed global growth concerns…stock index futures in New York as of 6:25 am Pacific are pointing toward a slightly negative open on Wall Street…the S&P 500 touched highs yesterday not seen since May, 2008, and is up 3% this month…the minutes of the U.S. Federal Reserve’s most recent policy meeting are set for release later this morning…traders will be looking for clues on the Fed’s attitude toward more stimulus measures but all they may find is confusion…some Fed officials, including Chairman Ben Bernanke, have made it clear the Fed will need to weigh incoming data in order to make a decision on any new measures…Bernanke has said the Fed is ready to act if necessary, and it was expected he would signal the Fed’s intentions during its annual symposium at Jackson Hole at the end of this month just as he did two years ago…but now some Fed watchers believe Bernanke will have difficulty clearly stating the Fed’s view at Jackson Hole, and Fed officials will have to wait until the early September data, particularly the August employment report, to make a decision…

Venture Exchange

The Venture Exchange encountered resistance as expected at 1248 yesterday and finished the session up 10 points at 1239…a new CDNX uptrend is clearly in place on the charts but be patient for the breakout through the 1250 area…the rising 10 and 20-day moving averages (currently at 1215 and 1200, respectively) can be expected to provide strong support…

BHP Billiton Puts Project On Hold

BHP Billiton Ltd. (BHP, NYSE), the world’s biggest mining company, has put approvals for about $68 billion of projects on hold after second-half profit plunged 58% as metal prices declined and costs rose…net income was $5.5 billion for the six months ended June 30, from $13.1 billion a year ago, according to a calculation from Bloomberg confirmed by the Melbourne-based company…that beat the $3.5 billion median estimate of four analysts surveyed by Bloomberg…the mining giant says its plan to turn Olympic Dam, Australia’s most valuable discovered mineral deposit, into the world’s biggest open-pit mining operation has been derailed by a sharp rise in construction costs, coupled with a strong local currency and a fall in prices for copper and uranium…instead, BHP is looking at a less costly design for the mine, which under the scrapped scheme had promised to bring in billions in tax dollars and create thousands of jobs…BHP isn’t acting alone…big diversified mining companies have been tightening their focus on costs and reconsidering investment plans to shore up weaker cash flow…the world’s appetite for commodities continues, however, and the fact several large projects are being put on hold, and others are slow in coming together for various reasons, has to be bullish for prices…“We expect volatility in commodity markets to persist as temporary weakness in the manufacturing and construction sectors across all key markets is expected to weigh on market sentiment,” BHP said…“However, in the medium term we expect supportive economic policy and a broad growth bias, particularly in China, to lead to measured improvement in the external environment beginning in the first half of the 2013 financial year”…

Barclays – Bullish Outlook For Chinese Commodity Imports

Barclays Capital sees the glass half full and is looking for strong Chinese imports of commodities to continue…the bank describes year-on-year rises as “still robust” even though growth has slowed from the rapid rates early in the year…the most recent data show Copper net imports up 27% year-on-year with sharp gains for zinc and tin as well…corn imports were up 318% year-on-year, wheat 133%, soybeans 10%, oil 12% and platinum 102%…some pundits suggest the strength in imports, despite China’s slowing economy, is because commodities are being used to raise financing or to fill strategic stocks, rather than immediate consumption…”While we agree these factors have been important in some markets, especially Copper and, to some extent, Crude Oil and some agricultural commodities, we think it a mistake to attribute all of the recent strength to factors such as these,” Barclays stated…”Indeed, indicators of local demand collected directly from source or calculated independently of trade flows suggest that consumption levels still look very healthy…production of Copper-containing products rose by 7% year-over-year in July while (output of) aluminum-containing products was up by 23%…in oil, diesel demand was down, but gasoline demand grew 17% in July to hit an all-time high, jet fuel demand was up by 24% and residual fuel oil rose by 9%”… Barclays says “2012 is shaping up to be a much stronger year and we expect that trend to persist over the coming months”…

ATAC Resources (ATC, TSX-V) Chart

ATAC Resources (ATC, TSX-V) came out with impressive drill results yesterday from the Conrad and Isis East Zones at its Rackla Project in the Yukon (including 42.9 metres grading 18.44 g/t Au at Conrad), and the stock responded favorably by climbing 24 cents to $2.80 on one of the best volume days of the year…John sees some strong positives in the chart – below is a 15-month weekly chart that puts the bigger picture into perspective…

Great Panther Silver (GPR, TSX)

With Silver looking strong, there are numerous Silver stocks that are poised to move higher – not the least of which is producer Great Panther Silver (GPR, TSX-V) which we have been following regularly at BMR…GPR has been consolidating in a downsloping flag since early 2011…a convincing move on good volume through the $2.25 area would be a sure sign that GPR and Silver are ready to rock…below is a 2.5-year weekly chart from John…

Note: John, Jon and Terry do not hold positions in ATC or GPR.

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Welcome to our site, or at least the initial version of it!  BMR has been online for nearly three years and strictly through word-of-mouth we have built a 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.  While we focus a great deal on the Gold and Silver markets and trends in the global economy, and of course the technical health of the TSX Venture Exchange (CDNX), an important component of this site will always be original research on undiscovered junior exploration companies or small producers, mostly in the Gold and Silver 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.  However, investors must understand that these are still highly speculative situations and entail considerable risk, volatility and unpredictability.  Our stock coverage is for informational and entertainment purposes only and must not be viewed or interpreted as “buy”, “sell” or “hold” recommendations. We are not Registered Securities Advisers. Our opinions can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Adviser operating in accordance with the appropriate regulations in your area of jurisdiction. Always perform your own due diligence and please read our disclaimer at the bottom.

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.  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

Disclaimer:

BullMarketRun.com (BMR) is completely independent from any companies it covers.  BMR accepts no compensation of any kind from any groups, individuals or corporations for coverage of any company mentioned on this site.  We accept no advertising either.  Our stock coverage is for informational and entertainment purposes only and must not be viewed or interpreted as “buy”, “sell” or “hold” recommendations. No investment opinion or other advice is being rendered on any stock or company. We strongly recommend that you consult with a qualified investment adviser, one licensed by appropriate regulatory agencies in your legal jurisdiction, and do your own due diligence and research before making any investment decisions. The stocks we cover, by definition, are highly speculative and potentially very volatile. Investors are cautioned that they may lose all or a portion of their investment if they make a purchase or short sale in these speculative stocks.  We are not Registered Securities Advisers. Our opinions can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Adviser operating in accordance with the appropriate regulations in your area of jurisdiction. It should be assumed that BMR personnel, writers and their associates may hold or dispose of or trade in positions in any securities mentioned herein at any time.  Owner/Publisher of BullMarketRun.com is Terry Dyer of Langley, British Columbia.

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