As we mentioned this morning, a market will take the path of least resistance. The grinding, consolidating action in the Venture Exchange over the last couple of months finally gave way to an event we’ve been predicting for a while – a move through resistance at 1200, the first time in 27 sessions the Index has closed above this level. This is additional evidence that “sellers’ exhaustion” has occurred with the Venture and that bodes well for better days ahead. The bearish trend has broken down significantly.
This morning, we showed you a 12-year chart from John that highlighted why the bullish case makes so much sense with the Venture at the moment. Tonight, John has a four-month chart that should be music to everyone’s ears as the Venture has finally overcome resistance at 50 on the RSI. Other indicators are looking strong as well.
Keep in mind that a rising tide over the next month or two, or even for the balance of the year, will not necessarily lift all boats. Focus on the companies that have been the most active and are generating solid results and have either made a discovery or have an excellent shot at one – GoldQuest Mining (GQC, TSX-V), Rainbow Resources (RBW, TSX-V) and Comstock Metals (CSL, TSX-V) are just three situations we’ve been following. Each has strong fundamentals and a powerful chart in its favor, and all three show potential for major moves over the short term (the next several weeks).
How can you say that your bullish again on the venture? You guys have been bullish since the index was 2400. You always state that the venture will lead other markets. To me, this minor move off the bottom is in no way leading the markets. Risk capital is barely buying into these small companies. Yes, the venture will have its day in the sun again but it is simply a risky proposition to be going all in at this point. I don’t think the bottom is in yet
Comment by OldMan — August 15, 2012 @ 8:38 pm
You haven’t been reading the site regularly by stating we’ve been bullish since the Index was at 2400. Anyway, the point we’re making – you need to look closely at the charts we’ve been putting out on the Venture in recent days – is that the conditions are gradually coming together for quite a rally in the coming weeks. Plenty of cash on the sidelines and the bearish trend is clearly weakening in a MAJOR way – “sellers’ exhaustion” as we’ve been stating. I much prefer the odds of a 20% move to the upside over the next 6 to 8 weeks than a new low. We also have a situation where the 1000-day SMA is flattening out and could reverse to the upside within the next couple of months – historically, a huge development and a big warning signal for bears. This market could easily close higher for the year.
Comment by Jon - BMR — August 15, 2012 @ 9:30 pm
Sorry old man, Jon has this call right. I follow some of the most prominent well respected analysts in the nation and have tons of information at my fingertips. I am well respected on the boards and an exceptional bottom caller. the bottom is in on the Venture. No, it won’t see 2400 by the end of the year, but it is staging a bullish run here. You will see bigger up days than down days in the coming weeks.
Comment by dave — August 16, 2012 @ 1:02 am
Wondering what you could give us readers in the way of an sd update. I am assuming after this long that it is done. I have sent emails to kamal with no response. I see that they changed their name to cameo but that’s all that can be found. With your connections I’m sure you could shed a little more light on this matter. Any info would be greatly appreciated.
Comment by Heath — August 16, 2012 @ 3:50 am
Will look into it, Heath. This was one of our picks in 2010, it ran from a nickel into the mid-to-upper 20’s before heading south in March of last year and eventually went thru a name change and consolidation. They should have raised more money when they had the opportunity in 2010, more than a few companies made that mistake…
Comment by Jon - BMR — August 16, 2012 @ 4:02 am
sd has changed to cru.h waiting…..
Comment by tom — August 16, 2012 @ 5:33 am
what was the consolidation rate for SD or should I say cru.h
Comment by erik — August 16, 2012 @ 7:31 am
See dave, between u and BMR your calls have not exactly been spot on. BMR has been trying to call a bottom for over a year now. Eventually they will get it right then they’ll turn around and say they correctly called the bottom. Dave, your cred is kind of wiped out due to your calls on cev and cjc, although u can bottom fish cev right now. Point being, absolutely no one, either u or BMR or myself knows where this thing is going
Comment by OldMan — August 16, 2012 @ 11:13 am