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Gold has been somewhat volatile today, trading between $1,252 and resistance at $1,275…as of 7:30 am Pacific, bullion is up $7 an ounce at $1,261…Silver is 40 cents higher at $19.91…Copper is flat at $3.22…Crude Oil is up 24 cents at $97.43…stockpile data and supply glitches have tightened Oil markets recently…the U.S. Dollar Index has been bouncing around and is currently down one-tenth of a point at 81.03…

Gold is performing very well when one considers the lack of demand from Asia due to the Lunar New Year holiday…

Concerns about the fragility of stock markets after a recent heavy sell-off has piqued some investment interest in bullion, with the world’s largest Gold-backed ETF, the SPDR Gold Trust, reporting a 3.9-tonne inflow yesterday…

Reuters reported this morning that Indian jewellers are stepping up imports of finished Gold jewellery from Dubai and Singapore, as a record high import tax on the metal and rising premiums demanded by sellers are choking bullion supplies in the world’s second-biggest consumer…importantly, cheaper imports of finished jewellery now pose a threat to local jewellery manufacturing units that employ more than 10 million workers, excluding retail store employees…hit by lower availability of Gold, a few Indian jewellery makers such as Gitanjali Exports are also thinking of raising capacities at their overseas manufacturing units…we believe this may put additional pressure on the Indian government to relax its Gold-import restrictions in advance of May’s elections…winds of political change are brewing in India, and that should be favorable for Gold…

Updated Copper Chart

Copper hit a two-month low on Monday but bounced back slightly yesterday to snap a nine-session losing streak, its longest since December 1995…the sell-off was attributed to expectations that weaker economic data and tremors in emerging markets will lead to lower demand for the metal…the market, of course, is sensitive to changes in the global economic outlook because of Copper’s widespread use in construction and manufacturing…

Even with a modest slowdown in the Chinese economy, however, this country’s strong appetite for Copper continues…stockpiles of the metal in LME warehouses have fallen nearly 50% since late June, and much of that Copper has been moving to China according to industry experts…Deutsche Bank says China’s Copper consumption increased 11% last year as companies ranging from power-cable makers to home builders continued to use Copper products at a brisk clip…these companies ramped up despite slower growth in the broader economy and the Chinese government’s efforts to keep a lid on credit…many of China’s biggest Copper users are state-controlled companies, which are less reliant on the loans types that are the focus of the government crackdown…a great example is State Grid Corp. of China, responsible for the maintenance and expansion of high-voltage transmission lines across most of China…the company plans to increase spending by 13% this year…

Below is a 2.5-year weekly Copper chart from John that shows important support has held despite the string of nine consecutive down days that ended Monday…Copper has been trading in a horizontal channel, mostly between $3.20 and $3.40, since last summer…

Today’s Markets

Asia

Japan’s Nikkei average gained 172 points overnight to close at 14180, after enduring its worst drop since June 2012 yesterday…China’s Shanghai Composite remained closed for the Lunar New Year holiday…

Europe

European markets are mixed in late trading overseas…business activity in the euro zone expanded at its fastest pace since June 2011 in January, according to fresh data released this morning…

North America

The Dow is down 72 points as of 7:30 am Pacific… private companies created 175,000 new positions in January, a bit lower than expected but consistent with the pace of job creation over the past two years, according to the latest report this morning from ADP and Moody’s Analytics…the government’s non-farm payrolls data for January will be released Friday…

The U.S. budget deficit is set to fall to $514 billion this year, down substantially from last year $680 billion) and the lowest level by far since President Obama took office five years ago, according to a congressional report yesterday…the Congressional Budget Office (CBO) credits higher tax revenues from the rebounding economy and sharp curbs on agency spending as the chief reason for the deficit’s short-term decline…but the budget experts see the long-term deficit picture worsening by about $100 billion a year through the end of the decade because of slower growth in the economy than they had previously predicted…now, what would happen in future years if the government had to pay higher interest rates than expected on its accumulated debt which now stands at just over $17 trillion?…

The TSX is off 40 points through the first hour of trading while the Venture is down 2 points at 945…Alix Resources Corp. (AIX, TSX-V) is trading briskly this morning, one of the volume leaders, after announcing the acquisition of 1700 hectares in the Sheslay Valley next to claims held by Doubleview Capital Corp. (DBV, TSX-V)…the B.C. Ministry of Mines web site shows intense staking activity in the Sheslay Valley in recent days as this play continues to build momentum…

Venture Updated Chart

The Venture is underpinned by very strong technical support between the 920’s and the 940’s as clearly shown in this 4-month daily chart from John…not only is their Fib. support, but moving average (SMA) support as well with the 200-day flattening out at 935, just below the 100-day SMA at 940…

Garibaldi Resources Corp. (GGI, TSX-V) Updated Chart

The healthy minor pullback in Garibaldi Resources Corp. (GGI, TSX-V) over the last two trading sessions, into a strong band of support between its rising 10 and 20-day moving averages (SMA’s), has been a terrific opportunity for investors in our view, a consideration of Garibaldi management as well it seems…last night they announced the granting of 1 million stock options at 20 cents per share, and that kind of thing is often a very positive sign…

With a strong portfolio of diversified assets in Mexico and British Columbia, and a healthy balance sheet, GGI is well-positioned for a breakthrough year – especially given the fact it holds by far the largest land package among juniors in the Sheslay Valley district of northwestern B.C. where the Grizzly is being rapidly advanced to the drilling stage…Doubleview Capital Corp’s (DBV, TSX-V) recently announced discovery, contiguous to the borders of the Grizzly, has reinforced the theory that there could be multiple Cu-Au porphyry deposits along many kilometres in the Sheslay, like “pearls on a string”, and that this area could easily develop into a world class mining camp given its location and highly prospective geology…in recent days, BMR has been consulting with numerous independent geologists and prospectors in advance of a major report on the Sheslay district next week…suffice to say, the Sheslay Valley is shaping up to be British Columbia’s #1 exploration play in 2014, putting all the companies in the Sheslay region in a very favorable position (explains the acceleration of staking/acquisition activity)…

Below is an updated 3.5-year weekly GGI chart from John…the first critical technical event in this stock occurred last summer when GGI broke above a long-term down trendline…the next critical event was a recent breakout above a bullish downsloping flag…this chart is consistent with the idea of a potential massive move to the upside in GGI, generated by the strong possibility of new discoveries in the Sheslay Valley from the drilling of at least three properties – the Grizzly, the Hat (Doubleview) and the Sheslay (Prosper Gold, PGX, TSX-V)…as always, perform your own due diligence…

Monster Lake Exploration Resumes

TomaGold Corp. (LOT, TSX-V) has started work on the Monster Lake Property, 50 km southwest of Chibougamau, Quebec, pursuant to an agreement that calls for Iamgold Corp. (IMG, TSX) to spend at least $2 million on exploration at Monster Lake in Year 1…the first phase of work, which begins immediately, consists of a high-resolution magnetic survey, to be followed by an initial program of at least 6,000 metres of drilling scheduled to commence during the second half of this month…

Fission Uranium Corp. (FCU, TSX-V) Update

Fission Uranium Corp. (FCU, TSX-V) released assay results this morning from the final 20 holes of last summer’s drill program – noteworthy was the broad mineralization returned by the recently discovered R600W zone, and hole PLS13-109 (line 750E) which returned 4.22% U3O8 over 8.0 m including a higher grade interval of 11.1% U3O8 over 3.0 m…Fission’s winter drill program is underway…significantly, on January 27, the company announced that PLS14-129 (line 600E) returned the widest, strongest off-scale results recorded at PLS to date…FCU is off 2 pennies at $1.18 as of 7:30 am Pacific…important chart resistance is at $1.25 – a confirmed breakout above that area would be a very bullish development…

Reservoir Minerals Inc. (RMC, TSX-V) Update

Reservoir Minerals Inc. (RMC, TSX-V) is the perfect definition of a discovery play and we encourage our readers to perform their due diligence on this company and not dismiss the opportunity simply because RMC is trading around $6 a share…it has only 40 million shares outstanding, and reminds us a lot of how Richfield Ventures traded since rising from pennies in 2009 to more than $10 a share on a take-out by New Gold Inc. (NGD, TSX) in 2011…

Below is a 1.5-year weekly RMC chart – look at the impressive uptrend line…a correction at some point will almost certainly occur, as it does in all stocks, but the fundamentals underpinning this play are exceptionally strong as they were with Richfield…

Note: John and Jon both hold share positions in GGI.  Jon also holds share positions in PGX and DBV.

Gold has traded between $1,252 and $1,262 so far today…as of 7:45 am Pacific, bullion is down $7 an ounce at $1,250…Silver has added 8 cents to $19.42…Copper is up a penny at $3.22…Crude Oil is up over $1 a barrel to $97.63 while the U.S. Dollar Index has climbed slightly higher to 81.16…

Barclays stated, “The strength of the Gold price floor will be tested this week, given the absence of the Chinese market,” due to the Lunar New Year holiday period…bullion moved higher yesterday thanks to weak U.S. economic data, continued emerging market concerns and turmoil in the broad equity markets, but its gains were probably muted due to the fact that Chinese buyers are mostly on the sidelines this week…

Large speculators’ net-long Gold positions are now at the highest since November 5 according to the latest COT report ending January 28…Edel Tully, strategist at UBS, said that since the bulk of the net-long gains continue to be on short covering, rather than new buying, this “in a way helps explain Gold’s failure to break higher in spite of several attempts.”

The key for Gold, as John’s charts have shown, is to break above the $1,275 level which represents very significant resistance…

“Mattress Mack” Has A Really Bad Day

If you saw the value of stock portfolio dip yesterday thanks to the S&P 500’s worst February start since 1933, at least your net worth didn’t take as much of a beating as “Mattress Mack’s”…the Houston furniture store owner is out an estimated $7 million due to the Seattle Seahawks’ Super Bowl victory Sunday after losing a bet with customers who made hefty purchases at his stores…Jim McIngvale, known as “Mattress Mack,” ran a 10-day promotion at his two Gallery Furniture stores promising customers their money back if the Seahawks beat the Denver Broncos…to win, customers needed to have purchased $6,000 worth of furniture and had it delivered before kickoff on Sunday night…about 1,000 people participated, buying an average of $7,000 worth of furniture…at least he got some Super-Bowl sized free publicity…

Today’s Markets

Asia

Japan’s Nikkei tumbled 4% overnight, losing 610 points to finish at 14,008, as a reaction to what occurred on Wall Street yesterday plus the yen jumped to two-month highs against both the U.S. dollar and the euro…the Nikkei is down 12% since hitting a six-year peak of 16320 on December 30, placing this market firmly in correction territory…China’s Shanghai Composite remained closed…

Europe

European markets have been volatile today and are mixed in late trading overseas…

North America

U.S. markets are moderately in the green as of 7:45 am Pacific, trying to get back up on their feet after yesterday’s drubbing which extended the Dow’s losses to 1086 points (6.6%) over the last 10 trading sessions…

Since 1971, when January was negative, the S&P 500 extended its losses into February 72% of the time, falling on average 2.4%…that ratio stands at 65% for the Dow and 57% for the Nasdaq…the S&P 500 settled at 1742 yesterday, 35 points above its 200-day moving average (SMA), its lowest close in more than three months…in fact, it was the worst start to February for the Nasdaq on record, and the worst for the S&P since 1933 and 1982 for the Dow…

Yesterday’s weaker than expected manufacturing report contributed to growing concerns about the economy before Friday’s monthly jobs report…overall factory activity hit an eight-month low in January as new order growth plunged by the most in 33 years…Obamacare continues to weigh heavily on business confidence…of course emerging countries are a focus of attention right now, and a bullish catalyst has been removed from the market in Ben Bernanke…new Fed chair Janet Yellen faces a difficult task in the weeks and months ahead in terms of “messaging” and sending the right signals to the market…

From CNBC this morning…a historically high number of people will be locked out of the workforce by 2021, according to a report by the Congressional Budget Office released today…President Obama’s signature healthcare law will contribute to this phenomenon, CBO said, citing new estimates that the Affordable Care Act will cause a larger than-expected reduction in working hours – eliminating the equivalent of about 2.3 million workers in 2021 versus a previous estimate of an 800,000 decline – a great example of how Obama’s “social engineering” is killing jobs and hampering the ability of the American economy to fire on all cylinders…this is also a President who of course has mocked the job-growth potential of the Keystone XL Pipeline Project…does the President really understand how jobs are created?…he is America’s version of Pierre Trudeau, the hero of Canadian liberals and socialists, who inflicted long-term damage to the Canadian economy…

Updated Dow Chart

Yesterday, the Dow fell below its 200-day moving average (SMA) for the first time since December 28, 2012…over the last several years, great buying opportunities have always emerged each and every time the Dow has touched or fallen below (briefly) its 200-day, but that’s not a catchy headline for the mainstream media which has a tendency to dwell on the negative…the 300-day at 15000 also provides great support…below is an 18-month weekly chart from John…a critical band of support for the Dow, we would say, is between 14850 and the 300-day at 15000…what’s the big deal about a 10% correction?…interestingly, historically, February ranks as the second-worst performing month of the year for the Dow and the S&P 500, and the fourth-weakest month for the Nasdaq…

Volatility Index Chart

The “VIX” rose above 20 yesterday for the first time in four months…it’s important to note that the “Fear Index” is approaching a resistance zone (indicated in the chart below) and a near-term extreme based on the RSI(2) indicator…this is solid evidence that now is not the time to push the “panic button” – the worst time to be a seller is when the “Fear Index” is near a peak…

In Toronto, the TSX is relatively unchanged as of 7:45 am Pacific…the Venture, which has a very strong band of support between the 920’s and the 940’s, is up 3 points at 944…

TSX Updated Chart

Strong chart support for the TSX should exist at 13400…the TSX is also underpinned by rising 200 and 300-day moving averages between just below 13000 and 12800, respectively…

Canadian Dollar Chart Update

The Canadian dollar, like many other currencies, has taken a pounding recently, but appears to have landed on support…below is an interesting 20-year monthly “big picture” chart from John…RSI(14) is now at a level not seen since late 2008/early 2009 during and shortly after the Crash…

Tower Resources Ltd. (TWR, TSX-V)

We suggest readers perform their due diligence on Tower Resources Ltd. (TWR, TSX-V) which came out with significant news January 23 and Jan. 27 regarding its Rabbit North property near Kamloops which now covers 16,400 hectares in the immediate vicinity of New Gold Inc.’s (NGD, TSX) producing New Afton mine…check out TWR’s news release regarding this Copper-Gold porphyry play, and we’ll be continuing our due diligence in the days ahead…

New Afton is approximately 14.5 kilometres east of the main Rabbit North target…Rabbit North is also 28 kilometres east-northeast of the producing Highland Valley mine operated of course by Teck Resources Ltd. (TCK, TSX)…

TWR 2.5-Year Weekly Chart

LX Ventures Inc. (LXV, TSX-V)

Some of our readers have been following this tech story in recent months, so below is an updated chart from John on LX Ventures Inc. (LXV, TSX-V)…rising long-term moving averages suggest an overall uptrend is still intact with LXV, but note the down trendline that has formed from the late November high of 96 cents…yesterday may have marked the start of a turnaround as shown in this 6-month daily chart…

Note: John, Jon and Terry do not hold share positions in TWR or LXV.

Gold has traded between $1,240 and $1,254 on this first trading day of February…as of 7:00 am Pacific, bullion is up $3 an ounce at $1,249…Silver has added 16 cents to $19.32 (see updated charts below, reasons for encouragement)…Copper is flat at $3.21…Crude Oil is up 15 cents at $97.64 while the U.S. Dollar Index is down slightly at 81.22…

Physical demand volumes out of Asia dwindled considerably since last Thursday with the start of Chinese New Year, and Chinese traders will not likely be back in full force until the week of February 10…this Friday’s U.S. jobs report could prove to be critical in determining bullion’s next major move…Gold finished lower last week for the first time in six weeks, and the bulls must overcome key resistance at $1,275 in order to seize momentum and put the bears on the defensive…

The U.S. Mint sold 91,500 ounces of Gold coins last month, the most since April, joining counterparts from Australia to Europe in reporting higher demand…meanwhile, Global security services company Brinks is getting ready to open its fifth Gold vault in Singapore to profit from bullion’s movement from the West to the East…

Not sure if this is a good sign or not – hedge funds’ net-long position in Gold jumped 40% (the most since July) to 60,672 futures and options in the week ended January 28, according to data from the U.S. Commodity Futures Trading Commission data…

Today’s Markets

Asia

Japan’s Nikkei average closed at a two-and-a-half month low overnight, falling nearly 300 points to finish at 14619…several Asian markets, including Shanghai and Hong Kong, were closed for the Lunar New Year holiday…data released over the weekend showed Chinese factory growth slumped to a six-month low in January…China’s official PMI fell to 50.5 in January from December’s reading of 51, heightening worries of an economic slowdown in the world’s second largest economy…

Europe

European markets are mixed in late trading overseas…

North America

After falling more than 5% in January in its worst month in over a year, the Dow is off another 60 points through the first 30 minutes of trading today…the TSX is off 78 points but the Venture is bucking the trend with a gain of 3 points to 954 as of 7:00 am Pacific…

CDNX Updated 3-Year Weekly Chart

Below is John’s updated 3-year weekly CDNX chart that we’ve been tracking consistently over the last several months…what will be interesting to monitor is whether or not the RSI(14) will find support around the 50% level…it broke out above this resistance area in late December/early January for the first time on the 3-year weekly since the bear market began in early 2011…accumulation remains strong…the Venture out-performed the Dow, the S&P 500, the Nasdaq and the TSX in January with a gain of 2%…

Interesting headline at www.CliveMaund.com this morning:  “Precious Metals Sector New Uptrend – Juniors To Lead The Charge”…Clive is a respected technical analyst…

Junior Financings Surge

The money exists to fund junior exploration companies, but how it’s allocated – which companies and projects it goes to – is the key…at the recent Vancouver Resource and Investment Conference, Rick Rule stated that Sprott funds had invested $800 million in deals last year and will likely substantially pick up the pace in the first quarter of 2014 by pouring another $600 million into various projects…

Check out the article this morning by Mineweb’s Kip Kean at www.mineweb.com…Kean noted, “The latest tallies of junior financings year-to-date in January put the first month of the year on pace to equal all financings in the fourth quarter 2013.  In a recent research for its clients, Canaccord counted 144 equity financings over C$250,000 worth a total $480 million CDN in January versus $410 million in 180 financings in the fourth quarter 2013.  About a third of the January financings had closed, Canaccord noted.  Much of the January surge in terms of value stems from three multi-million bought-deals: Torex Gold ~C$125 million, Timmins Gold ~C$25 million and True Gold ~$36 million. In the final talk of the recent Roundup conference in Vancouver, PI analyst Jim Mustard pointed to similar figures as a positive sign for the junior market.  “That’s a significant start to the year,” Mustard said. “Maybe it’s the January effect. I don’t know. I hope it establishes a trend.”

Sheslay Valley Cu-Au Porphyry Play Heats Up More

Significant news this morning from Ashburton Ventures Inc. (ABR, TSX-V) which adds further support to the theory that Doubleview Capital Corp’s (DBV, TSX-V) recently announced discovery at its Hat Property may extend for a considerable distance to the east and southeast…

Besides staking additional claims, Ashburton has reported that a “large gossanous zone” has been observed, through recent flyovers, along the western edge of its Hackett Property contiguous to Doubleview’s Hat Property and within just 1,000 meters of DBV’s discovery holes…DBV’s discovery, as we showed in an updated map last week, is within a parallel trend dipping southeast that begins at least nine km to the northwest at Prosper Gold Corp’s (PGX, TSX-V) advanced Star target…several of these parallel trends appear to exist throughout the Sheslay district, extending all the way through Garibaldi Resources Corp.’s (GGI, TSX-V) massive Grizzly Property south to Teck Resources Ltd.’s (TCK, TSX) Eagle Project…

The existence of a large gossan on the western edge of the Hackett is interesting indeed, and this is also very close to the historical “Hoey” showing that appears to be on Doubleview’s ground…besides “Anomaly B”, where DBV has made its discovery, four other areas with similarly strong geophysical and geochemical characteristics, including two areas with Copper mineralization and Gold values in surface outcrops, have not been tested by drilling at the Hat…as DBV stated in its Jan. 20 news release, “The horizontal distance from mineral zones in drill hole H-6 to drill hole H-8 is almost one kilometre. Speculatively, if the newly discovered mineral zone is, as appears likely, continuous with the historic Hoey Copper-Gold zone that lies two kilometres south of the drill hole H-8 and has closely similar geologic and mineralogic characteristics, the horizontal extent may be in excess of three kilometres.”  Given what Ashburton is now reporting, it’s quite conceivable that any deposit at the Hat could extend onto ABR’s Hackett Property with continued potential going east and southeast…Garibaldi‘s acquisition of the Hat East and Hat East 2 claims to add to the Grizzly (plus the staking of Grizzly strike extension claims) represents a growing understanding of this whole system…

Below is a close-up look at the Doubleview discovery area…for scale purposes, keep in mind that this area – as significant in size as it is – represents just a small slice of the massive Sheslay pie which is a growing mineralized district covering at least 600 sq. km…

Ashburton Ventures Inc. (ABR, TSX-V) Updated Chart

Below is an updated chart to assist our readers with their own due diligence regarding Ashburton…since the summer of 2012, the stock has traded in a horizontal channel between support at 3.5 cents and resistance at 10 cents…in addition to its presence in the Sheslay Valley, ABR is focused on PGE exploration in the Yukon in the immediate vicinity of Wellgreen Platinum Ltd.’s (WG, TSX-V) deposit…as of 7:00 am Pacific, ABR is unchanged at 6.5 cents…

Prosper Gold Corp. (PGX, TSX-V)

Prosper Gold Corp. (PGX, TSX-V) has been perking up recently and of course is a very important player in the Sheslay district with its nearly 70 sq. Sheslay Cu-Au Porphyry Project that hosts at least five porphyry targets, four of them within a 12 sq. km area (Star, North Star, East Star and Copper Creek)…Prosper is gearing up for a 2014 drill program that will step out beyond the Star to test the theory that at least some of those targets are connected to the Star as one very large porphyry system…alternatively, Prosper could be looking at a series of potential deposits while the same holds true for Doubleview and Garibaldi…the Sheslay system is so “pregnant”, in our view, that the possibilities are truly incredible…

The 2.5-year weekly PGX chart shows increased momentum with a resistance band between 50 and 65 cents…as of 7:00 am Pacific, PGX is off a penny at 41 cents…

Magor Corp. (MCC, TSX-V) Updated Chart

We continue to keep a close eye on Magor Corp. (MCC, TSX-V), a tech play we like for the long-term…2014 could be Magor’s breakout year after the company first started trading on the Venture nearly a year ago…Magor is a “visual collaboration” company led by an all-star management team that includes some of the same senior personnel that guided Newbridge Networks…the company recently reported “solid growth” in its existing software transaction business, while it’s also in the process of rolling out its key Aerus cloud-based services…we expect Magor’s business model to really start to kick into gear during the second half of this year…no guarantees but superb potential here as we’ve seen their impressive technology in action…

Technically, Magor shows strong support in the mid-30’s, the ADX trend indicator is bullish and buy pressure remains strong despite the recent pullback in the share price…MCC closed Friday at 44.5 cents…below is a 10-month weekly chart from John…

Silver Long-Term Chart Update

One encouraging aspect to this long-term Silver chart is the current oversold RSI(2) condition at 11%…the RSI(2) indicator on the long-term chart has consistently been a reliable indicator of a near-term turnaround in the Silver price if it dips below the 15% level…given strong support for Silver around current levels, and this extreme RSI(2) reading, the metal could be ready for an immediate or near-term move higher…

Silver Short-Term Chart Update

Note: John and Jon both hold share positions in GGI.  Jon also holds share positions in DBV, ABR, PGX and MCC.

TSX Venture Exchange and Gold

After an impressive winning streak of 19 days out of 22, from December 20 through January 23, the Venture has cooled off modestly over the last six trading sessions which is healthy of course for the Index from a technical standpoint.  A very strong support band ranges from the low 920’s to the upper 940’s, and we saw a test of that Friday as the Venture dipped to 944 intra-day before recovering to finish at 951.  That was a 16-point drop for the week, the second straight weekly decline. For the month, the Venture gained 19 points or 2% and out-performed the Dow, the S&P 500, the Nasdaq and the TSX – a very good sign (the Dow actually suffered its worst month in over a year, falling 878 points or 5.3%).  Gold outshone the Venture slightly, gaining 3.4% in January.

Getting the overall trend right is the key, and we’re convinced the Venture has turned the corner with the bear market that started in early 2011 finally “peaking” with last June’s low of 859.  Below is a 5-year monthly chart from John showing how the RSI(14) pattern since the spring of 2012 is essentially a mirror image of the one between late 2009 and early 2011.  Note how the MACD histogram is now in the bullish zone for the first time since 2011 – excellent sign.

The Venture pushed above its long-term downtrend line in October, and overall it has been trading within a horizontal channel for the past nine months – a range that it should finally break out of at some point this quarter, especially if the 200-day moving average (SMA) reverses to the upside.  The Venture has broken above its 200-day for the first time since the bear market began, and this SMA now also contributes to that strong support band between the 920’s and the upper 940’s.

Bottom line:  The Venture bear market is indeed over in our view.  Patience and selectivity, however, remain critical.  Focus on the companies with strong management and geological teams, healthy balance sheets with no immediate need to raise money, attractive share structures, excellent properties in safe jurisdictions, active programs, and a management group that’s driven to push hard to build shareholder value.

New Discoveries Could Give The Venture The Lift It Needs

Fresh discoveries will be key in terms of igniting this market and restoring investor confidence.  In northwest British Columbia, an extremely significant exploration situation is deservedly gathering increasing attention and momentum.   Quite simply, the Sheslay Valley is rapidly developing into B.C.’s next major Copper-Gold porphyry discovery camp.  The biggest juniors in the area are Garibaldi Resources Corp. (GGI, TSX-V), Prosper Gold Corp. (PGX, TSX-V) and Doubleview Capital Corp. (DBV, TSX-V).  Doubleview, of course, reported an important discovery January 20 at its Hat Property on trend with Prosper ‘s advanced Star target approximately 9 km to the northwest.

According to our extensive research, a massive area in the Sheslay Valley covering at least 600 sq. km can be considered highly prospective for Cu-Au porphyry deposits.  Parallel trends (SE/NW) are cutting across this entire district, in classic northwest B.C. fashion, with ample geological, geochemical and geophysical evidence supporting the possibility of deposits like “pearls on a string” for many kilometres.  This play has serious “legs” to it and the intensity of it is only going to ramp up as all three companies gear up for more drilling.  Keep in mind, the Sheslay Valley has been under-explored and under-exploited for far too long, and it’s right on trend with major deposits, current and past producing mines to the south and southeast.

On Friday, Garibaldi soared 21% to a nearly two-year high, closing at 23 cents, after announcing it has expanded its Grizzly Property by nearly 50% to a whopping 262 sq. km through staking and the strategic acquisition of a claim package immediately east of DBV’s Hat Property (within as little as 1 km).  Garibaldi has the Hat surrounded on three sides now, but there’s also a 15-km corridor stretching through the heart of the Grizzly (from Grizzly West to Grizzly Central) featuring “multiple targets”, according to GGI – “known mineral occurrences over a wide corridor coincident with magnetic anomalies.”

Garibaldi stated it best for all the players in the Sheslay Valley Friday when it referred to the area as “an emerging Copper-Gold porphyry mining camp with world-class potential.” GGI is finalizing an “aggressive” 2014 exploration season at the Grizzly including a first-ever drill program. GGI has financial strength behind it (more than $3 million in working capital according to its latest financials ending Oct. 31) and a clean share structure as it hasn’t had to carry out a significant financing in five years.

There are smaller players in the area besides GGI, PGX and DBV, and one of them we really like – given its strategic property location – is Ashburton Ventures Inc. (ABR, TSX-V).  Few investors seemed to have clued in to the fact that ABR’s Hackett Property (contiguous to the Hat) is on trend and very close (within at least 1200 metres by our estimate) to Doubleview’s discovery holes.  ABR has been edging higher on increased volume since DBV’s announcement, but at 6.5 cents its market cap is still only a very modest $1.8 million.  As always, perform your own due diligence.

Gold

As expected, after climbing for five straight weeks, Gold ran into stiff resistance around $1,275 and got pushed back to finish Friday at $1,246 for a loss of $23 on the week.  Physical demand volumes out of Asia dwindled considerably since Thursday with the start of Chinese New Year, and Chinese traders will not likely be back in full force until the week of February 10.  Next Friday’s U.S. jobs report will be critical for bullion.

Below is a 9-month daily chart from John.  Buy pressure has been subsiding recently, and it’ll be interesting to see if RSI(14) can hold at the 50% support level.

Silver tumbled 74 cents last week to close at $19.17 (John will have updated Silver charts tomorrow morning).  Copper slipped a nickel to $3.22 on emerging market concerns and weaker economic data out of China.  Crude Oil, however, climbed nearly $1 a barrel to $97.49.  The U.S. Dollar Index gained three-quarters of a point to close at 81.25.

The “Big Picture” View Of Gold

As Frank Holmes so effectively illustrates at www.usfunds.com, the long-term bull market in Gold has been 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, has had a huge impact on bullion.  Despite Gold’s largest annual drop in three decades in 2013, the fundamental long-term case for the metal remains solidly intact – currency instability and an overall lack of confidence in fiat currencies, governments and world leaders in general, an environment of historically low interest rates, a Fed balance sheet now at $4 trillion and still expanding, money supply growth around the globe, massive government debt from the United States to Europe, central bank buying, flat mine supply, physical demand (especially from China), emerging market growth, geopolitical unrest and conflicts…the list goes on.  However, deflationary concerns around the globe and the prospect of Fed tapering had a lot to do with Gold’s plunge during the spring below the technically and psychologically important $1,500 level, along with the strong performance of equities which has drawn “momentum traders” away from bullion.  June’s low of $1,179 may have been the bottom for Gold – only  time will tell.  Given the high level of bearishness that exists in this market at the moment, it’s probably safe to say that if Gold hasn’t seen its low yet, it’s at least very close to a bottom (within 10% to 15%).  We do, however, expect new all-time highs as the decade progresses and inflationary pressures finally kick in around the globe after years of ultra-loose monetary policy.  There are many reasons to believe that Gold’s long-term bull market is still intact despite this major correction from the 2011 all-time high of just above $1,900 an ounce.

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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.  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 perspective (His money that we have been given stewardship of), He will bless you.  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

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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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