Gold has traded in a range of $1,658 to $1,667 so far today…as of 6:00 am Pacific, the yellow metal is essentially unchanged at $1,664…Silver is up 11 cents to $30.83 but is temporarily technically overbought as one of our charts pointed out yesterday…Copper is off 3 pennies at $3.43…Crude Oil is up 42 cents to $95.89 while the U.S. Dollar Index has fallen one-quarter of a point to 81.43…
Today’s Markets
Asian markets were mixed overnight with China’s Shanghai Index climbing 17 points to 2073, its best day in three weeks after yesterday’s sell-off that took the Index to its lowest close since March, 2009…European shares are down marginally this morning while stock index futures in New York are pointing toward a slightly negative open on Wall Street…the Venture Exchange lost 5 points yesterday to close at 1247…the rising 10-day moving average (SMA), which can be expected to provide strong support, is at 1237…
U.S. Dollar Index Chart – Bullish Implications For Gold, Silver & The CDNX
The greenback appears to be in some technical trouble which is ultimately bullish for Gold and Silver and the equity markets (the Venture Exchange tends to perform best in a weak Dollar environment)…there are two possible scenarios for the Dollar Index in our view, and both are negative…either it crashes through support or – more likely – it stages a near-term rebound but forms a head and shoulders top…below is an updated chart from John that helps explain this bearish outlook…
On the other side of the equation (supporting the case for a weaker U.S. Dollar) is a very powerful-looking long-term CRB Index chart…examine this closely, folks, because what it’s showing is that a Wave 5 move is underway in commodities which is not necessarily the standard view at the moment…check the SS (Slow Stochastics) pattern…
GoldQuest Mining (GQC, TSX-V)
The Monster at Romero got even bigger yesterday as GoldQuest Mining (GQC, TSX-V) reported results from four additional holes (LTP-94 thru 97) which included 235 metres grading 7.88 g/t Au (4.71 g/t Au using a 50 g/t Au cut-off) and 1.43% Cu 24 metres north of the discovery hole (LTP-90)…LTP-96, nearly 80 metres east of LTP-90, returned 188.5 metres of 3.14 g/t Au and 1.07% Cu…two other holes weren’t nearly as good but most companies would still love to report 79 metres of 2.33 g/t Au (LTP-97) or 102 metres grading 0.73 g/t Au (LTP-95)…hole 95 was drilled within a fault zone, and the deep drill rig that is on its way to Romero will be investigating potential mineralization on both sides of that fault zone…mineralization remains open in all directions at Romero as the company continues to drill step-outs within the 500 m x 300 m IP anomaly…Romero is a world class discovery by any measure and Big Money continues to position itself…yesterday’s market action was highly interesting…the stock, which closed Friday at $1.71, opened at $1.80 following the halt, ran up to $2 and then magically fell back down to $1.70 where Dundee crossed a mere 14 million shares which helps put a floor on the price…it seems there was an eager buyer to take out Goldfields‘ long-standing position in GQC and that has to be considered a bullish development…GoldQuest was not a core asset for Goldfields, and what a great way for a new player (or players) to get their hands on a big chuck of stock especially since GQC has not been doing any large financings up to this point…total volume for 1 hour of trading yesterday was 21.5 million shares (20.8 million on the Venture)…
The GoldQuest chart continues to look fantastic…in fact, yesterday’s activity – though nerve-wracking to some – confirmed Friday’s bullish move up, and the recent overbought condition has cleansed itself…one should underestminate the wisdom or power of Dundee…they have become a big player in this and they have some very sharp mining analysts who know how to size up a discovery…with 7 holes reported, it’s already very clear that GQC is sitting on a rich deposit – the extent of which will be better defined in the coming weeks and months…with the deep drill rig on its way, additional holes in the lab and a lot more step-outs to come, this story still has a lot of “legs” to it at a time when Gold is in a new uptrend and the Venture is turning around…below is John’s updated GQC chart…as John has shown previously, GQC is underpinned by very strong technical support between $1.50 and $1.60…
Readers are advised to continue to keep a close eye on other key juniors in the Dominican Republic – Unigold Inc. (UGD, TSX-V), now arranging a $5 million financing, Everton Resources (EVR, TSX-V) and newcomer Precipitate Gold (PRG, TSX-V)…
Rainbow Resources (RBW, TSX-V) Update
After Friday’s news regarding encouraging early drilling indications from the International Silver Property, our instincts tell us something very positive is brewing at Rainbow Resources (RBW, TSX-V) which could be the catalyst that allows this play to break out to a new all-time high of 30 cents+…in addition, Rainbow continues to draw new followers and the latest example is technical analyst Clive Maund (www.CliveMaund.com) who featured Rainbow yesterday and sees a strong likelihood of a continued “robust advance”…RBW has been consolidating in a healthy way over the past several sessions which sets the stage for a potentially powerful move through the 24 to 27 cent resistance band that John, our technical guru, previously identified…accumulation and buying pressure have been impressive…on the ground, RBW is drilling into a known high-grade system and our interpretation of last Friday’s news is that they are hitting the vein structure they were hoping to…Moose Mountain Technical Services, the company’s geological consultant, is increasing the number of drill-site locations which us tells they’re gaining valuable new information with regard to this potential deposit…
RJK Explorations (RJX.A, TSX-V)
Yesterday, we pointed out what we see are some obvious opportunities in the rich Blackwater district of central British Columbia including RJK Explorations (RJX.A, TSX-V) which is expected to start drilling again next month…this morning, John has a 3-year weekly RJK chart that shows an important reversal in RSI(2)…based on this chart, it’s our strong belief that the support band will hold…RJK definitely appears to be in the very early stages of a new uptrend that should certainly gain momentum as September,
Note: John and Jon both hold share positions in RBW with Jon increasing his share position again yesterday (Jon also holds a share position in GQC and RJX.A).
Jon, what do you think about that interview with EVR, Andre mentioned that there may be a small offering of $500,000 or so just to keep some cash, Looking for a JV partner to drill the Dominican. My question to you is:
1. Why would he get a JV partner for the Dominican when he was trying to get rid of one in Brigus.
2. More of a statement: That is why he went for 1.5 million, apparently he knows something that he could tell an investor to make them cough up that amount of money. He stated that he needs 2 million or so to continue. There was never an intention to get a JV partner and this interview should have never been conducted by Audet. It makes him look like a liar.
Comment by john — August 28, 2012 @ 5:08 am
GQC will open high today but my small buy lot still at $1.64 Love to see big flucutations today. Hopefully, my day trade can make me richer today!
Comment by Theodore — August 28, 2012 @ 5:12 am
What are the major differences between UGD and PRG at the moment besides drilling locations? Would one be more incline to invest in one or the other at this point in time or is it too early to tell?
Comment by Dave — August 28, 2012 @ 5:22 am
BMR – John and Jon both hold share positions in RBW with Jon increasing his share position again yesterday.
Bert – For goodness sake, it was you, Considering what you already have,
25K is indeed showing that you are very very positive on RBW.. Follow
the person in the know says me. R !
Comment by Bert — August 28, 2012 @ 5:28 am
Dave
The biggest difference at glance is the # of shares o/s, UGD has over 200 million…. PRG
also has other great properties, in particular in the Yukon.
Comment by Bert — August 28, 2012 @ 5:50 am
sorry if this a duplicate all… but
http://goldstocktrades.com/blog/2012/08/22/early-stage-silver-miners-in-friendly-jurisdictions-ready-to-move/
RBW coverage
Comment by Jeremy — August 28, 2012 @ 5:59 am
If we see a pp announced shortly at this sp level for RBw we will know what the anon selling was all about. One way or another they are trying to keep sp right where it is. Be nice to see a stock trade normal and honestly for a change. Seems like the crooks and slime have taken over the market conpletely
Comment by Heath — August 28, 2012 @ 6:22 am
Thank you … my GQC buy lot filled!
Comment by Theodore — August 28, 2012 @ 6:32 am
Jon, even you must be getting even a little bit irritated by the anon selloff on rbw…
Comment by db — August 28, 2012 @ 6:33 am
@heath… I am putting my sell lot at $1.75. I am not a greedy person…
Comment by Theodore — August 28, 2012 @ 6:38 am
Actually, db, I love what I see……this is typically the kind of set-up (technically and fundamentally) that is seen prior to a sudden acceleration to the upside…….RBW has been range-bound for a while and I suspect this will finally bust out to the upside with a breakout next week on news in the next few days, perhaps right before the Labor Day long weekend….it has that signature and feel to it……minor drops like this morning on low volume have meant nothing over the last several weeks other than a buying opportunity……..be patient here folks for a couple more days as I have a hunch – just a gut feeling – that the dynamics are going to change by Friday……..
Comment by Jon - BMR — August 28, 2012 @ 6:45 am
Hey Jon,
What’s your insight on the recent PP released at .08 cents for EVR.V? Doesn’t this seem a bit low and might bring down the SP quite a bit now?
Comment by Dave — August 28, 2012 @ 7:03 am
Jon, is there any concern about the CEO selling 100k of RBW the other day?
Comment by Steve French — August 28, 2012 @ 8:23 am
BMR – Which company do you prefer PPP or RJX.A? It appears Jon owns RJX.A so I’m just wondering why not PPP instead?
Comment by Andrew M — August 28, 2012 @ 9:07 am
Not at all…..I looked into that this morning, and I also remember very well the trade last week when it went thru above the market at 25 cents…..Brian Murray crossed 100,000 shares to a close associate (strategic reasons) thru Jones Gable, that’s what it was….I confirmed that with him this morning…..I interpret that as a bullish sign…..
Comment by Jon - BMR — August 28, 2012 @ 9:09 am
I like both the same, and I bought some PPP this morning on top of a bit yesterday for the first time. I think RJK is closer to actually drilling.
Comment by Jon - BMR — August 28, 2012 @ 9:11 am
hey guys and gals…. GQC now has no assays pending yes???? am I accurate on that DD??
Comment by Jeremy — August 28, 2012 @ 9:21 am
Two holes (#’s 8 and 9) in the lab (assays pending), two more holes (#’s 10 and 11) in progress….lab company will be releasing results in batches which I assume means probably at least batches of 4……I suspect it’ll be a few weeks before we see additional assays…..in the meantime, the Deep Rig will be starting in September……..
Comment by Jon - BMR — August 28, 2012 @ 9:27 am
GBB finally, 8.5 cents buy lot filled… currently 8 cents… it will float now between 8 and 8.5 cents in low volume. GQC …I will try to sell before closing… probably close to $1.70 as I am not going to hold position in this one. RBW not much to say in low volume and may end up in 23 cents.
Comment by Theodore — August 28, 2012 @ 9:52 am
RBW – I don’t get it. It may be small volume. But’s really annoying. Who keeps selling at this level. Hard to find that those have made any major profits.
Comment by Kalkan - Sweden — August 28, 2012 @ 10:25 am
rbw at 19.5 – yup we’ll be chasing this one to the 30’s boys and girls – fasten your seatbelts
pfff what a joke.
Comment by alex — August 28, 2012 @ 10:41 am
was it Bert that said rbw might be @.10 by the time we get results, he might be right
Comment by BRIAN — August 28, 2012 @ 11:00 am
Just got off the phone talking to pierre report to come out Thursday Things are looking very good at rbw
Comment by gil — August 28, 2012 @ 11:12 am
My sell lot of GQC changed to $1.69
Comment by Theodore — August 28, 2012 @ 11:18 am
Theo, the constant play by play of your daily trading is not why I come to this site. Why do you feel the need to share your trading strategies? is it to gain credibility the one time a week you actually get your prediction right? im goimg out on a limb and gunna say gqc will close below 1.65
Comment by db — August 28, 2012 @ 11:38 am
Thank you Jon .. guess my DD sucks:)
Comment by Jeremy — August 28, 2012 @ 11:40 am
takes 2 hours of trading to reverse about 4 weeks of buildup and accumulation on millions of shares bought
jon I’m sure everyone is trying to figure out what happened today and what the technical damage here was
Let’s just say we all know the 24 support got sliced right through like a hot knife on butter
Been adding to my positioin it for almost 7 months and it’s at my average cost now
Pretty uneventful
Comment by alex — August 28, 2012 @ 12:25 pm
boy someone wanted out of RBW didnt they????? a silly market order eh!!
Comment by Jeremy — August 28, 2012 @ 12:36 pm
I also bought PPP and RJX.A today. I think you guys hit is right on targetting these little guys since they do have a fairly large land package that’s adjacent to Blackwater. I like both of these two years ago but only have been watching since. Looks like both have a fairly decent drilling campaign. Now we just have to see which hits better and sooner.
Any analysis on management? One better than the other? Land packages?
Comment by Andrew M — August 28, 2012 @ 12:53 pm
Wow… what the hell happened there at the end? One guy got scared and it seemed like the whole boat jumped off with’em. (you know which stock i’m talking about)
Welp… time for the rest of us to rake in more shares for cheap
Comment by Muiyan — August 28, 2012 @ 12:54 pm
This was a classic case of market manipulation or “painting the chart” near the end of the day in an attempt to shake some apples out of the tree, or someone who at month-end settlement had to do some squaring of accounts. I personally added 40,000 more shares today because common sense told me to and even my fiancee didn’t object. Someone was determined to have this close at .20 today, for whatever reason, given the nature of the trading over the last hour-and-a-half, and have it bounce off the 50-day rising moving average. It was all done on small orders, so I wouldn’t even classify this as a sell-off. .22 to .20 in the last 3.5 minutes on 8,000 shares. Very strange trading. By the way, the U.S. close was 22 cents on over 100,000 shares and the ALPHA close was 22 cents. Go figure.
Comment by Jon - BMR — August 28, 2012 @ 1:38 pm
Would you believe that the drop in RBW today didn’t really bother me,
especially since it seemed to be the pattern for many stocks. It was a
down day & hopefully, stocks will bounce back tomorrow…Now we wait for
September, when the kids get back to school & parents get back to work.
The problem is, we have been waiting for months & predicting as we moved
along, that the next month would be better. The expected RBW report/news,
which was expected Wednesday, is now due out Thursday, only a day, but
nothing ever seems to happen on time with most companies, but i am
satisfied to wait it out, to determine what is at the end of that Rainbow.
I still maintain RBW will have a run, every company has a run, otherwise
they are pronounced dead & shareholders are left to mourn. R !
Comment by Bert — August 28, 2012 @ 4:14 pm