BullMarketRun.ca

The Venture gave some bullish reversal signals last week and jumped out of the gate powerfully this morning, demonstrating that the last half of May is going to be much different for the junior resource market than the first half.

Commodities are also rebounding with WTI closing above the key $48 technical level today.

Historically, “Sell in May and Go Away” has proven to be about the worst possible strategy during Venture bull market years, and 2017 is sure to be no exception.

Higher commodity prices, discoveries and takeovers – they are all “fuel” for the Venture and the tank is quickly refilling!

Today, northwest Quebec and the entire junior sector got a big boost when Eldorado Gold (ELD, TSX) announced a friendly takeover of Integra Gold (ICG, TSX-V), a deal valued at approximately $600 million.

That’s huge validation for Integra’s efforts at its Lamaque Project in Val d’Or, and for all that’s happening in northwest Quebec right now.

Bonterra Resources (BTR, TSX-V) hit a new multi-year high today, closing at 51 cents, and other Quebec plays showed strength including Granada Gold (GGM, TSX-V) just down the Golden Highway from Integra.

GGM, on the verge of confirming a significant technical breakout after closing at 7.5 cents today on total volume of 1.2 million shares (all exchanges), is due to release an important update on its Granada Property any day now.  Given that Integra was obviously undervalued, it’s safe to assume that GGM is, too.

In tonight’s BMR Evening Alert…

• What a difference a week makes – updated Venture chart…
• The beat of Bonterra…
• Could there be a LONG Bars Zone 2?…
• The Elephant in Ecuador…

Venture 6-Month Daily Chart

Markets will always take the path of least resistance.  Venture support in the upper 700’s is phenomenal and more powerful in our view than resistance around 850.

Plan for that breakout because at some point in the not-too-distant future, it’s going to happen.  And when it does, look out!

Note how the slide in the Venture from Easter to last Tuesday, almost 8%, very much mirrored the mini-correction in March in terms of its duration and percentage decline, though sell pressure wasn’t nearly as intense.  In each instance, the Index slipped briefly below its rising 200-day moving average (SMA).

What happened last week is that the Venture found support where it should have and by Friday overcame its short-term downtrend line as well as its EMA(8).

Today, the Venture also pushed above its EMA(20) and both exponential moving averages have swung to the upside.

RSI(14) bounced off a strong support level (30%) on the daily chart last week and also formed a “W” while a bullish +DI/-DI cross (ADX indicator) appears imminent.

There are many more great days like today in store for the Venture over the coming months, so enjoy!

Did you know that for as little as just over $2 a day, you can be a BMR subscriber and tap into the best analysis and picks for the junior resource sector that you’ll find anywhere?  Last year’s BMR Top 50 List returned a whopping 118% and we are delivering market-trouncing returns again in 2017.  BMR was the first to call the new bull market in the Venture in early 2016, and our coverage of the commodities space gives you valuable daily insights into price movements and critical trends.  BMR is daily information that puts you ahead of the crowd!

We also give first-time subscribers an industry-leading 100% money-back satisfaction guarantee.  If you don’t believe BMR has helped you make money for your first 6-month subscription period, we’ll refund your subscription fee in full – no questions asked!

Did you know that for as little as just over $2 a day, you can be a BMR subscriber and tap into the best analysis and picks for the junior resource sector that you’ll find anywhere?  Last year’s BMR Top 50 List returned a whopping 118% and we are delivering market-trouncing returns again in 2017.  BMR was the first to call the new bull market in the Venture in early 2016, and our coverage of the commodities space gives you valuable daily insights into price movements and critical trends.  BMR is daily information that puts you ahead of the crowd!

We also give first-time subscribers an industry-leading 100% money-back satisfaction guarantee.  If you don’t believe BMR has helped you make money for your first 6-month subscription period, we’ll refund your subscription fee in full – no questions asked!

To read the rest of tonight’s BMR Evening Alert, sign up NOW or login as a current subscriber with your username and password.

Gold has traded between $1,228 and $1,238 so far today…as of 11:45 am Pacific, the yellow metal is up $3 an ounce at $1,231…Silver has jumped 20 cents to $16.64…Copper is up 2 pennies at $2.54…Nickel is steady at $4.20…Crude Oil has climbed more than $1 a barrel to $48.86 while the U.S. Dollar Index has fallen one-quarter of a point to 98.94…

Chinese economic data released overnight, including industrial production and retail sales for April, came in below expectations…however, fresh liquidity injections into the Chinese economy, which have eased some monetary pressures, as well as recently announced trade deals between China and the U.S. have lifted the morale of the commodities complex after a late April-early May slump…the Chinese-U.S. deals, announced last Thursday, are the first tangible results of trade talks that began last month after President Trump and Chinese President Xi Jinping met in Florida to discuss cooperation between the world’s 2 largest economies…the mainstream media got so discombobulated over the Comey firing, it hasn’t been able to focus on much else since – hence, little coverage on positive developments in the U.S.-China trade relationship…

Multiple factors gave Gold a boost today as mentioned in 7 @ 7:00…despite some weaker than expected U.S. economic data since Friday, including the manufacturing sector within the New York region contracting for the first time since October of last year, the Fed remains on track to increase interest rates again June 14…that’s what could actually spark a nice summer run in Gold, Silver and commodities in general…

A Friday after market report out of Chile showed a stunning decline of 26% in Silver production in that country during the 1st quarter of this year…that’s a big deal considering that Chile is the 4th largest Silver producing country in the world…the majority of Chile’s Silver production comes as a by-product of Copper…by a long shot, Chile is the largest Copper producer in the world – 5.5 million tons last year vs. Peru (#2) at 2.3 million tons…

Oil Update

Meanwhile, the volatile Oil market is likely to get spooked again at some point by rising U.S. production…U.S. firms added Oil rigs for a 17th week in a row, extending a 12-month drilling recovery…

However, as Daniel wrote last week, the market’s worst fears about shale Oil may not come true…

5 Big Ideas You Must Know About Shale And The Industry Right Now

CRB Index Update

Two weeks ago we called for a further retracement in the CRB Index from 181 to the 177 level, the bottom of a horizontal channel that has defined the trading pattern for over a year…indeed, the CRB touched 177 last week and closed Friday just below 182…

Going forward, the outlook is clearly bullish with the CRB having successfully tested support and now pushing higher with some momentum behind it…Slow Stochastics (SS) is forming a low bullish “W” and RSI(14) is bullishly aligned as it continues to follow a long-term uptrend after extreme lows in early 2015…RSI(14) also has an excellent chance to break out above a short-term downtrend line before the end of this month, setting the stage for a potentially strong summer…great for the Venture!…

The CRB Index is up just over 1 point to 183 as of 11:45 am Pacific…

In Today’s Morning Musings….

1. Eldorado buys out Integra – bullish implications for northwest Quebec and junior exploration market…

2. Updated Silver charts – wow, this is interesting!…

3. Junior cuts deal with New Gold, will have 20 cents in cash (just 15 million shares) with stock trading at 14.5 cents…

4. Daniel’s Den – organic inputs, the sophisticated way to bet on marijuana?…

Did you know that for as little as just over $2 a day, you can be a BMR subscriber and tap into the best analysis and picks for the junior resource sector that you’ll find anywhere?  Last year’s BMR Top 50 List returned a whopping 118% and we are delivering market-trouncing returns again in 2017.  BMR was the first to call the new bull market in the Venture in early 2016, and our coverage of the commodities space gives you valuable daily insights into price movements and critical trends.  BMR is daily information that puts you ahead of the crowd!

We also give first-time subscribers an industry-leading 100% money-back satisfaction guarantee.  If you don’t believe BMR has helped you make money for your first 6-month subscription period, we’ll refund your subscription fee in full – no questions asked!

Did you know that for as little as just over $2 a day, you can be a BMR subscriber and tap into the best analysis and picks for the junior resource sector that you’ll find anywhere?  Last year’s BMR Top 50 List returned a whopping 118% and we are delivering market-trouncing returns again in 2017.  BMR was the first to call the new bull market in the Venture in early 2016, and our coverage of the commodities space gives you valuable daily insights into price movements and critical trends.  BMR is daily information that puts you ahead of the crowd!

We also give first-time subscribers an industry-leading 100% money-back satisfaction guarantee.  If you don’t believe BMR has helped you make money for your first 6-month subscription period, we’ll refund your subscription fee in full – no questions asked!

To read the rest of today’s Morning Musings, sign up NOW or login as a current subscriber with your username and password.

Check back later this morning for today’s BMR Morning Market Musings.

1. Gold has traded between $1,228 and $1,238 so far today…as of 7:00 am Pacific, bullion is up $5 an ounce at $1,235…Gold is getting help from sharply higher Oil prices this morning in addition to a weaker U.S. dollar…media-hyped U.S. political turmoil, a successful missile test by North Korea, a worldwide cyber attack and some weaker-than-expected U.S. economic data have all combined to boost Gold’s safe haven status to begin the new week…Silver is bouncing back sharply after last week’s extreme readings, up 26 cents at $16.72…

2. Crude Oil prices have climbed back above $48 a barrel after Russia got on board with Saudi Arabia to push for a longer extension than expected to the current deal among OPEC members and certain non-OPEC producers…speaking in Beijing today, Saudi Arabia’s energy minister, Khalid al-Falih, and Russia’s Alexander Novak said they want the current agreement to continue holding back around 1.8 million barrels of Oil from the market each day until the 1st quarter of 2018 through a 9-month extension… 

3. Another major swoops in to acquire a junior…Integra Gold (ICG, TSX-V) is up sharply this morning on the announcement that Eldorado Gold (ELD, TSX) is acquiring Integra for $1.21 per share through a combination of shares and cash…the deal values ICG at around $600 million…upon completion of the transaction and based on the maximum number of shares issuable under the arrangement, current Eldorado and Integra shareholders would hold approximately 90% and 10% of the combined company, respectively…Integra’s principal asset is the Lamaque Project near Val-d’Or which hosts an NI-43–101 Indicated resource of 5.1 million tonnes at a grade of 9.13 g/t Au and an Inferred resource of 3.5 million tonnes at a grade of 7.94 g/t Au, at a cut-off of 5 g/t Au…a Preliminary Economic Assessment was completed in February 2017 that envisions a high-grade underground operation producing 123,000 ounces of Gold per year at all-in sustaining costs of $634 U.S. per ounce over 10 years…Integra is currently in the process of advancing underground ramp development to facilitate underground exploration and completion of a bulk sample…George Burns, President and CEO of Eldorado Gold, stated, “The Company has been following Integra’s progress at Lamaque over the last 18 months and commend their team for the accomplishments to date. From previous experience of building and operating Gold mines in Canada, I am excited about Eldorado’s entry into the Eastern Abitibi region of Canada. With our current balance sheet strength post the sale of our Chinese assets, this acquisition represents a use of the proceeds complementing our existing portfolio of high quality, low cost assets.”

4.  If Integra was undervalued at a market cap of $400 million, what does that make Granada Gold (GGM, TSX-V) just down the Golden Highway near Rouyn-Noranda, Quebec?…GGM is expected to release an updated resource estimate very soon for its Granada deposit which has multi-million potential in addition to indications of a significant high-grade discovery at depth immediately north of the LONG Bars Zone open-pit resource around 1 g/t Au…GGM is trading at 6.5 cents for a market cap of $25 million…

5. Salazar Resources (SRL, TSX-V) has intersected 16 m (15.6 m true width) of massive and semi-massive chalcopyrite-sphalerite-pyrite grading 3.7 g/t Au, 117.4 g/t Ag, 4.9% Cu and 5.4% Zn in the northeast section of its El Domo resource in Ecuador (drill hole CURI-224), mineralization that is thicker and of higher grade than any previous results from this area…the intercept in CURI-224 is Gold-rich with the top of the mineralization grading 7.7 g/t Au over 6.3 m from 225.4 m to 231.7 m…this hole represents new exploratory drilling in an attempt to expand and upgrade the latest El Domo resource estimate released January 16, 2005…drilling continues at Salazar’s 100%-owned Curipamba VMS Project with just over half of the 10,000-m program completed to date…Fredy Salazar, President and CEO, commented:  “This new intersection indicates significant potential for finding thicker mineralization in the northeast area of El Domo resource which will increase the size and quality of the resource“…SRL is up a penny at 15.5 cents as of 7:00 am Pacific and has the potential to accelerate to the upside based on the impressive intersection in hole #224…

6. The Venture snapped a 3-week losing skid last week and has started the 2nd half of May with a bang, up 12 points at 806 through the first 30 minutes of trading this morning…our latest Venture charts provide ample evidence that the nearly 8% mini-correction in the Index that started immediately after Easter was yet another “head fake” in the ongoing bull market and ended last Tuesday at 772…the TSX is up strongly in early trading as are U.S. markets…

7.  White Gold (WGO, TSX-V) is up 3 cents at $2.08 as of 7:00 am Pacific after announcing this morning that it has commenced its 2017 exploration program on its portfolio of projects in the Yukon’s White Gold district…the focus of the company’s program is to drill test new and previously defined high priority Gold-in-soil trends and to further define and advance its other targets to drill ready status…200 RAB drill holes consisting of 20,000 m will test a minimum of 6 target areas on the Loonie, Dime, IND, Nolan and Black Hills properties…exploration activities including soil sampling, geologic mapping/prospecting, drone surveys, DC IP-Resistivity surveys, GT Probe sampling and/or RAB drilling to be conducted on 24 of the company’s 25 properties…very busy summer coming up for WGO…

The most popular recent BMR articles…

Undervalued Quebec Gold Play on Verge of Fresh Catalysts

Their Last Deal Was Just Shy of a 100-Bagger!

The Best Kept Secret In Canadian Cobalt!

TSX Venture Exchange and Gold

Venture weakness in May has once again provided junior resource investors with major opportunities!

Did you know that for as little as just over $2 a day, you can be a BMR subscriber and tap into the best analysis and picks for the junior resource sector that you’ll find anywhere?  Last year’s BMR Top 50 List returned a whopping 118% and we are delivering market-trouncing returns again in 2017.  BMR was the first to call the new bull market in the Venture in early 2016, and our coverage of the commodities space gives you valuable daily insights into price movements and critical trends.  BMR is daily information that puts you ahead of the crowd!

We also give first-time subscribers an industry-leading 100% money-back satisfaction guarantee.  If you don’t believe BMR has helped you make money for your first 6-month subscription period, we’ll refund your subscription fee in full – no questions asked!

To read the rest of today’s report, click here or login as a current subscriber with your username and password.

Check back later this morning for Daniel’s Den (BMR Morning Market Musings returns soon) and other potential posts today.

1. Gold has traded between $1,226 and $1,232 so far today…as of 7:00 am Pacific, bullion is up $5 an ounce at $1,230…a weekly close in the $1,230’s would certainly be a bullish sign going into the final half of May, but critical for Gold this week was bouncing off key support at $1,215…commodity traders will be keeping an eye on a host of Chinese macro releases due over the weekend…meanwhile, traders are expecting a 100% probability of an interest rate increase next month, according to CME Group’s FedWatch prior to fresh economic data released this morning…a rate hike June 14 has the potential to ignite a summer rally in the metal…

2. U.S. consumer sentiment for May, reported just moments ago, slightly exceeded expectations with the University of Michigan’s Consumer Sentiment Index rising to 97.7…that’s up from 97 in April and shows that the “Trump Bump” continues, much to the bewilderment of the mainstream media…meanwhile, the Commerce Department announced retail sales increased 0.4% in April from March…that was below expectations of 0.6%; however, sales had ticked up just 0.1% in March and fell in February…the increase suggests consumers may spur faster growth in the quarter of April through June after the economy just barely expanded in the first 3 months of 2017 despite a surge in consumer and business sentiment…

3. Net length in open Crude Oil futures positions is at its lowest level since November 2016 which sets the stage for further gains in Crude ahead of OPEC’s meetings later this month when the cartel and certain non-OPEC countries are expected to extend production cuts implemented at the beginning of this year…Crude has rebounded this week, thanks in part to the expectation of bullish news in a couple of weeks regarding the extension of production cuts while the latest U.S. inventory report has also helped…meanwhile, Norwegian consultancy Rystad Energy, commenting on how U.S. Oil production has gained “significant momentum“, predicts that U.S. Lower 48 (all states excluding Alaska and Hawaii) Oil production is set to expand by an additional 390,000 bpd from May 2017 to December 2017, assuming a WTI price of $50 per barrel…WTI is hovering just below near-term resistance at $48 this morning…

4. Commodity corruption:  The Wall Street Journal reported this morning that money from state-run Chinese companies was used to help finance the buildup of a massive Aluminum stockpile that has crisscrossed the globe, depressed prices and sparked a U.S. criminal investigation…any such involvement by these state-run entities has the potential to strain relations between the U.S. and China as the latter is clearly undercutting global competition by giving government assistance to its commodity companies…Aluminum is among several commodities that the Trump administration has singled out for potential protectionist policies against cheap Chinese imports…the stockpile in question involves nearly a million tons of Aluminum products from China that began accumulating outside a factory in a Mexican desert and was later transferred to Vietnam…WSJ tied the cache to Chinese billionaire Liu Zhongtian and his China Zhongwang Holdings Ltd. Aluminum company…his apparent goal, American competitors allege in federal complaints, was to disguise the origin of the metal, which could have faced U.S. tariffs as high as 374%…he was planning for retirement in Switzerland by shifting assets out of China where citizens can move only a limited amount of money out of the country…

5. The Venture is set to snap a 3-week losing skid which shaved 53 points or 6.3% off the Index in a mini-correction that closely mirrored the weakness in March…further evidence of strong support in the 780’s with the Venture up 3 points at 791 as of 7:00 am Pacific, 21 points above the weekly intra-day low during B.C. election day on Tuesday…the TSX has added 21 points in early trading with the Gold Index set to post a very strong week, currently up 6% from last Friday’s close…Markham, Ontario-based Real Matters Inc. closed its initial public offering of $156.7 million yesterday, the largest technology IPO on the Toronto Stock Exchange in a decade and only the 3rd tech company since 2014 to raise more than $100 million in its IPO. ..90% of the company’s business comes from the United States where it is a leading player in the network management services platform sector for the mortgage and insurance industries…

6. Transition Metals‘ (XTM, TSX-V) Canadian Gold Miner Corp., not yet publicly listed, has closed a private placement totalling $817,250 by way of the issuance of 5,294,998 units, each consisting of a common share and common share purchase warrant exercisable for 3 years at 25 cents per share at a price of 15 cents per unit, and the issuance of 115,000 flow-through eligible shares at a price of 20 cents….concurrent with the financing, Canadian Gold Miner has entered into a finder’s fee agreement with Gravitas Securities Inc., whereby Gravitas will endeavour to assist the company to complete additional flow-through financing of up to $1-million this spring…the planned use of proceeds includes drilling of the high-grade Bjorkman showing (Feb. 8, 2017, XTM news release) as well as a robust exploration program on Canadian Gold Miner’s South Kirkland project area…

7. Klondex Mines (KDX, TSX) has provided an updated mineral reserve estimate for its True North Gold mine in Manitoba…total Proven and Probable mineral reserve (underground) is 147,900 ounces, an increase of 25% from the prior estimate…the new figure is based on 7,877 drill holes totaling a whopping 1,504,878 m…this includes 131 drill holes totaling 18,065 m completed by Klondex since June 30, 2016.  Brian Morris, Senior VP Exploration, stated:  “This updated mineral reserve estimate is another milestone in the ramp-up of True North. As expected, the system is beginning to unveil its real potential as we continue to see robust grades and widths at depth as well as up-dip mineralization in the 710/711 zones.  We continue to make good progress ramping up the mine at True North with infrastructure being put in place. We expect production to be weighted to the 2nd half of the year and remain on track to meet our annual production guidance.”

The most popular recent BMR articles…

Wake Up, British Columbia!

The Best Kept Secret In Canadian Cobalt!

A 50,000-m Drill Program? 

Venture support levels have been holding up as expected and the Index is now showing signs of gaining new traction to the upside after a 3-week slump that closely mirrored the weakness in March.

Investors should have learned by now that every Venture pullback since the start of the bull market early last year has been a time to get excited, not discouraged, just like you’d be thrilled if Costco suddenly decided to roll back prices across the board an average of 10% to 15%, with even better deals on certain products, for a limited period.  Would you stop visiting Costco until they raised prices again?

Investors who understand this truism are the ones who make the most money in the market, especially during bull phases when dips to key support areas are classic low-risk opportunities.

Nervous nellies sell into the weakness they don’t understand and are fearful of; sophisticated investors understand the weakness and its limits.  Unlike the nervous nellies, they aren’t controlled by the market or their own emotions.  They are astute traders and investors.

Venture 6-Month Daily Chart

With investors’ worst fears about the B.C. election not materializing, and commodities starting to firm up again, the Venture has posted back-to-back winning sessions to once again get above what has been a key Fib. level going back to last year – 784.

• RSI(14) has bounced off support at 30%, forming a bullish “W”
• Today the Index closed at 788 and above its short-term downtrend line and the EMA(8)
• Venture will accelerate to the upside once the EMA(8) and EMA(20) have both been cleared and reverse higher
• Notable short-term resistance around 800 which held for 33 straight sessions and is just 3 points above the current EMA(20)
• Short-term bearish trend (ADX indicator) is weakening
• It’s quite possible the last half of May will be much stronger than most investors were anticipating just days ago

The Venture since last August has been consolidating from a massive 80% gain over just 7 months.   The stage is being set for another major upside move that will crystalize during the 2nd half of 2017.