Gold turned on a dime as soon as a much weaker than expected U.S. jobs report came in at 5:30 am Pacific time…expect the Federal Reserve to unveil QE3 at its meeting next week (Wednesday and Thursday) after employment growth remained weak in August with just 96,000 new positions created – far below the 125,000 that were expected…as of 5:45 am Pacific, Gold is up $24 an ounce at $1725 after falling as low as $1,689…Silver has reversed by nearly $1.50 an ounce and is now up 66 cents at $33.37…Copper has surged 6 cents to $3.54 (very good sign)…Crude Oil is up 27 cents at $95.80 while the U.S. Dollar Index is in trouble – it’s down three-quarters of a point at 80.39, falling below critical support…
Today’s Markets
Asian markets were sharply higher last night with China’s Shanghai Composite Index soaring nearly 4% to 2128…while yesterday’s news regarding the ECB bond buying program was certainly a factor in the jump, the rise was fueled largely by the fact that Chinese regulators had given the go-ahead to 30 infrastructure projects, adding to 25 rail projects already approved this week, the official China Securities Journal reported this morning…the report estimated that the total amount of investment projects approved this week was above $157 billion – a sign that China is taking measures to stimulate its economy…this sparked a rally in Chinese machinery stocks which contributed significantly to the overall surge in Chinese equities…
The reversal in the Shanghai Index is for real – below is a chart from John that was completed after yesterday’s trading and doesn’t include the overnight surge…notice how the Index has reversed out of oversold conditions right at important support levels…it’s reasonable to suggest we’re about to see a sharp rise in the Shanghai that will, at a minimum, test the resistance at the top of the downsloping wedge (which is what it did earlier this year) now around 2300…
A deluge of data is due out of China on Sunday (inflation, factory output, fixed-asset investment and retail sales for August) that could confirm investors’ worst fears that a downswing in the world’s second-largest economy has stretched into a seventh straight quarter…the inflation number will be a key one to watch…if there’s an awkward combination of rising prices while growth in exports and factory output wilts, Beijing will face a policy dilemma: relax policy and risk an inflation spike, or stand still and risk a continued slowdown in activity…
North American Markets
U.S. Stocks closed at multi-year highs yesterday with the S&P 500 (1432) ending at its best level since before the collapse of Lehman Brothers…the rally was broad, with more than three-fourths of stocks listed on both the New York Stock Exchange and Nasdaq ending higher…materials, financials and industrials – groups tied to the pace of economic growth – led with gains of more than 2%, giving the Dow (13292) its biggest daily gain in two months and helping the Nasdaq (3136) advance to its highest level since 2000…stock index futures as of 5:45 am Pacific are pointing to a flat to slightly higher open this morning on Wall Street…
Venture Exchange
The Venture Exchange plowed through important resistance yesterday, climbing 12 points to close at 1258…this puts the Venture just slightly above its still-declining 100-day moving average (SMA) for the first time in over five months…what really jumps out at us, though, is that the 1000-day SMA has flattened out at 1500 after a steady four-year decline and seems to be on track to reverse to the upside early in the fourth quarter…historically, such a reversal has only been witnessed at the start of a bull market…
Below is John’s updated short-term Venture chart – volume and buying pressure need to continue to increase, but we believe both will gradually build as the month unfolds…RSI(14) on this 4-month daily chart bounced off support at 50, as predicted, and is now at 64 which is still below the overbought range…
TSX Gold Index
There are very encouraging signs in the TSX Gold Index which has broken above a down trendline in place all of this year as you can see below in John’s 2.5-year weekly chart…note the recent surge in buying pressure, after months of selling pressure, and how the +DI is about to cross up over the -DI and the ADX…this is unquestionably a bullish chart…on Monday, we’ll take a look at a couple of the best-looking producers…
ECB Decision And Its Impact On The Dollar
The European Central Bank’s (ECB) much awaited announcement yesterday that it would buy sovereign bonds in a new program to ease the euro zone debt crisis should help the battered euro reclaim at least some of its clout (which is bullish for Gold), according to analysts…the euro (1.2692 is now at a two-month high against the greenback after the ECB unveiled new and possibly unlimited steps to buy the bonds of those euro zone countries that have faced painfully high borrowing costs this year…ECB President Mario Draghi said the central bank would buy bonds with maturities of up to three years once those euro zone countries in need of help agreed to strict conditions to improve the state of their finances…
So how are things looking for the U.S. Dollar right now in light of the ECB announcement and possible new easing measures from the Federal Reserve?…John’s updated U.S. Dollar Index chart shows a support band that is now being broken…a clear down trendline is in place with a possible head and shoulders top that suggests the Index could plunge to at least 78 (this would be hugely bullish for Gold)…we’re also anticipating an Obama re-election victory in November (Dollar bearish, Gold bullish) if for no other reason than the fact that Mitt Romney just doesn’t seem to be able to sell the Republican message and connect with the American people…
Obama’s Nomination Speech
President Obama was right about at least one thing last night as he accepted the Democratic Presidential nomination: “On every issue, the choice you face won’t be just between two candidates or two parties…“It’s a choice between two fundamentally different visions for the future”…Obama called on Americans to rally around an economic recovery plan based on shared sacrifice and the “bold, persistent experimentation” that Franklin Roosevelt employed during the Great Depression, which reflects Obama’s faith in government and reliance on an institution that needs to shrink in size – not expand – simply based on the fact it’s carrying a $16 trillion debt…Margaret Wente of the Globe and Mail hit the nail on the head regarding Obama in an article yesterday in the Globe and Mail: “Mr. Obama dwells in the world of the technocratic elites, who believe that a government with enough smart people and smart policies can solve all our problems (this is a cherished Canadian myth, and one reason we relate to him)…I suspect Mr. Obama knows no more about ordinary people than Mr. Romney does…like immense wealth, the White House tends to isolate a person…Mr. Obama is surrounded by people who tell him he walks on water – and, by most accounts, he believes it…but his greatest problem is that he doesn’t seem to know the old order is finished…he seems to think that all he needs to do is tax the rich, wait it out and soon the good times will return…that’s not a vision, or a plan…it’s a fantasy”…
President Obama was right about at least one thing last night as he accepted the Democratic Presidential nomination: “On every issue, the choice you face won’t be just between two candidates or two parties. “It’s a choice between two fundamentally different visions for the future”…Obama called on Americans to rally around an economic recovery plan based on shared sacrifice and the “bold, persistent experimentation” that Franklin Roosevelt employed during the Great Depression, which reflects Obama’s faith in government and reliance on an institution that needs to shrink in size – not expand – simply based on the fact it’s carrying a $16 trillion debt…Margaret Wente of the Globe and Mail hit the nail on the head regarding Obama in an article yesterday in the Globe and Mail: “Mr. Obama dwells in the world of the technocratic elites, who believe that a government with enough smart people and smart policies can solve all our problems (this is a cherished Canadian myth, and one reason we relate to him)…I suspect Mr. Obama knows no more about ordinary people than Mr. Romney does…like immense wealth, the White House tends to isolate a person…Mr. Obama is surrounded by people who tell him he walks on water – and, by most accounts, he believes it…but his greatest problem is that he doesn’t seem to know the old order is finished…he seems to think that all he needs to do is tax the rich, wait it out and soon the good times will return…that’s not a vision, or a plan…it’s a fantasy”…
it’s a fantasy
it’s a fantasy
it’s a fantasy
it’s a fantasy
it’s a fantasy
YES IT IS…..
Comment by john — September 7, 2012 @ 5:01 am
BMR – Margaret Wente of the Globe and Mail hit the nail on the head regarding Obama
in an article yesterday in the Globe and Mail: “Mr. Obama dwells in the world of the
technocratic elites, who believe that a government with enough smart people and smart
policies can solve all our problems.
Bert – I am about to hit the nail on the head by stating the folks at BMR, dwell in
the world of technical analysis, who believe it is the perfect method to evaluate
securities. They also feel their analysis will result in moving us from average folk
to being elite, as a result, we will never again have to worry about our every day
problems. We all have our beliefs. R !
(Joking)
Comment by Bert — September 7, 2012 @ 5:21 am
awesome job guys!! we can only hope that BigBen pulls the trigger, and boom… the chinese have allocated tons of dough to kickstart… ecb has… why not the Fed:) oh they are already doing it!:)
this could be fireworks boys and girls… nugt up from 7 bucks to almost 14 in 2-3 weeks..??? yikes!!
Comment by Jeremy — September 7, 2012 @ 5:25 am
Watch out folks – RBW about to rip right through 25 cents – this has been an utter dissppointment for those waiting for a climb in the stock price before releasing results.
Down a penny and a half on 33k shares – impressive! I have 196k shares and God help you all if I decide to get out of this. Not a threat, sorry folks. I am going to unfortunately commence the dump.
BMR would you like these shares at 20? I will sell them all to you, otherwise we go down to 15-16 in a heartbeat..
Comment by Alex — September 7, 2012 @ 6:07 am
RBW… dropped to 21.5 cents… I am not worry about it as the sellings are from the small investors but I did not sell a single share. I strongly believe that each share will bring me 250% profit minimum. As I said, it is your call to sell or not. Definitely, I am not the one. GQC… had a jump this morning but I always doubt about the momentum. $1.65 … already over the line and it will go down in the later session. SFF … surprised me at this price but you cannot go wrong at 12 cents. PEM and EVR .. nothing to comment as it should stay between 8.5 – 9 cents and 10 – 11 cents respectively.
Comment by Theodore — September 7, 2012 @ 6:09 am
Now i am beginning to wonder if there really is any gold at the
end of the Rainbow… Recent performance, in particular this a.m.,
down 0.015, tells me, the market is not enthused… We may have a
problem Mr. Spock. R !
Comment by Bert — September 7, 2012 @ 6:13 am
This has been bouncing up and down between current levels and 25 cents for a while now, and you have rising 50, 100, 200 and 300 day SMA’s which confirm the primary trend is up…..light volume on pullbacks…..what does that tell u? Personally, I like the idea of a pullback to support as that means taking shares off someone at a cheaper price when I’m confident of the big picture which is a pending breakout through .25…..simple as that….so this is no time to be discouraged, it’s a time to be patient….especially with gold and silver doing what they’re doing, and the venture looking a lot healthier….there are lots of other plays are aren’t moving just yet but will…..
Comment by Jon - BMR — September 7, 2012 @ 6:31 am
Theo, your brilliant.
Comment by OldMan — September 7, 2012 @ 6:33 am
I bought some more rbw yesterday @ .225, thats probably why its down, stocks tend to do that as soon as I buy them! Sorry!!
Comment by fred — September 7, 2012 @ 6:33 am
Asks seem to have thinned out up to .24. Let’s hope we get more bids showing up too. Fingers are crossed for a winner here!!
Comment by Tony T. — September 7, 2012 @ 6:44 am
I was referring to RBW in my above post.
Comment by Tony T. — September 7, 2012 @ 6:45 am
gqc..another profit takeing day jon???????
Comment by tom — September 7, 2012 @ 6:47 am
Jon
I am about to hit you a little harder this a.m.,
The last 3 words of your narrative on President Obama, it’s a fantasy,
says it all, when it comes to your continuous belief in RBW & no matter
how it performs, it’s a fantasy. R!
Comment by Bert — September 7, 2012 @ 6:50 am
No problem, my friend……it was also a fantasy for GQC to go from a nickel to $2!
Comment by Jon - BMR — September 7, 2012 @ 7:05 am
Jon – It was also a fantasy for GQC to go from a nickel to $2!
Bert – You got me there, but if i were to turn the tables on
you & state in a joking manner, that it’s no fantasy that Bre-x
went from way up there to 0. R !
Comment by Bert — September 7, 2012 @ 7:14 am
IMO, RBW screwed this up by issuing news releases on Fridays. We had momentum building and then trading stops b/c of the weekend. Once Monday arrived, RBW was just a distant memory in investors minds. Very Poorly executed timing for the releases.
Comment by Tony T. — September 7, 2012 @ 8:01 am
Alex, I thought you were going to sell us all your shares at 20c?
Comment by db — September 7, 2012 @ 8:02 am
Patience people, when RBW has good assay results this will be off to the races, I think we should all be happy we can buy more down here while we can. More and more people are hearing about the story, just a matter of time imo, which is worth absoulutely nothing, I know…
Comment by greg — September 7, 2012 @ 8:03 am
Loks like gold is going to set a new high both daily and weekly in Euros here in Europe today. It set an all time high in Rupees in India during the week. Fasten your seat belts folks this show is only getting started. Picked up my final buy of RBW at 22c earlier in the week. Let the games commence!!
Comment by Patrick — September 7, 2012 @ 8:14 am
Yikes, I just calculated the amount of shares for sale in the 20’s (that are showing on the ask) and there are 537100 for sale (so far) .
Comment by Tony T. — September 7, 2012 @ 8:20 am
From Jeb Handwerger re: Jim Decker
Not only has Mr. Decker who is a Rainbow director and the companies qualified person under NI 43-101 been an experienced trainer in mine supervision for such companies as Alamos Gold, Barrick, Breakwater, BHP, Cameco, Capstone Mining, Cleveland Cliffs, Farallon Mining, Fording, Kinross, Newmont, North American Palladium, Placer Dome, Prodeco, Suncor, Teck, Western Coal and Xstrata but some of you may have known him as President and Founder of Grande Cache Coal. Grande Cache was eventually acquired by China’s Winsway Coking Coal Holdings Ltd. and Japan’s Marubeni Corp. for $1 billion
Comment by greg — September 7, 2012 @ 8:28 am
Jeb Handwerger issues an update this morning on RBW:
We are expecting a major breakout at $.25 as there are many
catalysts on the horizon.
They recently released news that they raised over $1 million
dollars in a private placement to fund drilling at their Big Strike
Project in British Columbia and their Jewel Ridge Property which
borders Barrick’s world class Ruby Hill Mine. There are many
developments in the pipeline. Drilling is expected to begin at Jewell
Ridge in Nevada and has already started in British Columbia at their
International Property.
Moreover, Rainbow has announced that the first ever drilling
program on the International, a historic producing asset in BC has
intersected the vein system. Drill site locations are being expanded
from three to eight and core has already been sent to the lab for
assaying. Investors should be hearing about results in the next few
weeks as well as additional permits to drill other exciting prospects
such as their Gold Viking Property.
Another important announcement is that Jim Decker who was
one of the founders of Grande Cache Coal has been appointed VP of
Operations and Technical Services. Grande Cache was eventually
bought out by the Chinese for over $1 billion dollars. Jim Decker has
over 40 years of experience exploring, operating and designing mines
all over the world for some of the top resource companies. This is an
impressive addition to the management team of a early stage
explorer.
Moreover, the company has granted stock options to
management at $.25. One can purchase below that price right now.
This price is the near term breakout point and we believe that
Rainbow is a bargain below $.25. The companies ability to attract top
notch management, raise capital in a volatile market and begin
exploration on top projects in mining friendly British Columbia and
Nevada. In the early stage of a bull market in the junior miners,
active, well managed and financed explorers can make major gains.
The company has an experienced board with strong shareholders
including one of the owners of the Calgary Flames. The share
structure is impressive with approximately 35 million shares
outstanding, with insiders owning approximately 22%. Stay tuned.
Comment by greg — September 7, 2012 @ 8:38 am
One of the problems with the US economy is that the Dems haven’t been progressive enough.
They need to raise marginal rates a lot on the super rich, (like during the Eisenhower administration) and give tax breaks to the middle class.
We need to bring manufacturing jobs back home via tariffs and taxes.
We need massive infrastructure investments.(paid in part by cuts to our ever so bloated military industrial complex)
We need to curtail our immigration rate of 100,000 a month and use e-verify to reduce the 12 million illegals in the country.
We need to curtail the runamok financial industry and we need a single payer health care system.
That should do for starters.
Comment by Carl — September 7, 2012 @ 8:54 am
CRE.V….the next one to go from a dime to $2?? 😉
Comment by M. — September 7, 2012 @ 8:57 am
good comeback jon,i’ve taken bad info once on sd,never again will i do that,along with bmr and a lot of homework on my own i’m on the rite track,got into gqc at .16 and it seems like a lifetime ago,but alot of reading and watching i think rbw will be a hit as well ,great job bmr,a wealth of knowledge comming from these guys,boys and girls,bmr should be on everyone’s christmas list.keep up the great work…
Comment by tom — September 7, 2012 @ 12:40 pm
I COULDNT TAKE IT ANYMORE I HAD TO LIGHTEN UP ON RBW I COULDNT STAND TO WATCH OTHER STOCKS RUN WHILE RBW STOOD STILL. I BOUGHT WS SOL SVL SPM AGQ AZX I STILL HOLD A GOOD POSTION IN RBW
Comment by gil — September 7, 2012 @ 1:30 pm
I am not privy to the RBW trades for the day, but i managed
to come across the last 2 hours of trading information. I noticed
that anonymous sold approximately 125K shares, the top price obtained
was 0.225. Because the financing is closed, i feel someone may want out
& because they are using anonymous, i could be right. Are the Calgary
Flames in need of cash ? (joking) Anyway, if it’s an insider, it has to
be reported. R !
Comment by Beert — September 7, 2012 @ 2:34 pm
Bert, just something I noticed today that was interesting. Over the last week or so, there was a RBW block of about 200K that was being offered on the ALPHA market. It would sometimes appear and disappear, and the offering price ranged from 26 to 23 cents. Anyway, I think that block is what got sold on the Venture today – it was split up into different orders. It disappeared from ALPHA, never showed up at all today for the first time in over a week. Since this first appeared right near the announcement of the financing, I suspect it may have been PP related. Just an observation. Looks like that seller is now gone which takes away some pressure. I have a gut feeling next week will be good.
Comment by Jon - BMR — September 7, 2012 @ 2:45 pm
Jon – I have a gut feeling next week will be good.
Bert – Long live Jon’s gut.
Comment by Beert — September 7, 2012 @ 3:06 pm
My forecasts of this week and results: (re-post, not aligned properly)
—————-Forecast ——————————————-Actual———————————————————
RBW.. Low 23 cents High 31 cents, Close at 28 cents———- Low 21 cents High 23 cents, Close 22.5 cents (Wrong – still not moving)
GQC.. Low $1.50 High $1.71, Close at $1.61 —————— Low $1.51 High $1.70 , Close $1.67 (High/Low accurate, Close +$0.06)
GBB.. Low 8.5 cents, High 11.5 cents, Close at 10 cents —– Low 8.5 cents High 10 cents, Close 9.5 cents ( Pretty close except High)
EVR.. Low 11.5 cents, High 12.5 cents, Close at 12 cents —- Low 10 cents High 11.5 cents, Close at 10 cents (Close lower but expect drop in price after last week’s 13 cents high)
SFF.. Low 12.0 cents, High 14.5 cents, Close at 14.5 cents — Low 11.5 cents High 13.5 cents, Close at 12.5 cents (Close lower than prediction but I have full confidence in this one – 25% profit, purchased 40,000 shares at 12 cents)
Comment by Theodore — September 7, 2012 @ 7:03 pm
Alex, sorry I beat you to it on the sell of RBW.
Jon, GQC from a nickel to $2. It was in the forties last year when you were pumping it so hard and releasing email alerts that it was going to break out. Now I ask you. Do you honestly think anyone held it from the .40’s to .04. Keep in mind that one out of a thousand do what GQC did and sustain the value. Such would be Aurelian in 2006. It is very rare.
Bert, you have been giving everyone hints, but they are not listening.
BMR has RBW sidetracked as a Discovery and they don’t even have thier first drill assays yet. Let me give you 2 just this week that the boards were SURE bigs assays were coming. LOT and UVN. I think it was Lundin (not sure) that said UVN will be a double digit stock upon the assays.
In my opinion, the safest way to play any venture is buy on the news if it is steller and NO ONE is selling. If the news is bad or not up to expectations and the stock tanks, you don’t lose a penny if your not in it. If its great and opens with a gap and sustains a couple days, then you pick your entry. No, you don’t make as much as you would if you were in it at .15 to .20, but you don’t lose.
Comment by dave — September 7, 2012 @ 7:05 pm
ABI vol up today, bit early to say but early signs are looking good.
Comment by Hugh — September 8, 2012 @ 3:32 am
I am somewhat disappointed in RBW & it’s lack of performance,
considering what has taken place so far. Some may argue, it’s
at 0.22, what more do you want. My response is, isn’t that the
price of 2 sticks of gum ? Anyway, the question remains, why do
i visit this site, my response, because i have come to trust,
let’s call them the BOYS. Although i find Jon somewhat excitable,
it doesn’t take away from him being honest & until i find him to
be the opposite, i will continue to believe in him. I am being
repetitious now, because i have stated this before, are we to
believe that they would jeopardize years of long hours working on
our behalf & free of charge, just to see their plan, of having a
successful business die, because of one stock in particular, that
is ”RBW”. I just can’t make myself believe that they don’t know
precisely what’s going on with the company & that it will have it’s
run, therefore i am hanging in there, at least for now. I get all
kinds of reminders of different stocks, but i have decided to stay
with & believe in, those i think i have gotten to know, rather than
those i don’t know. Making decisions can be difficult, but i have
mentioned before, how i profited from ATC & it was a similar dilemma,
but i hung in & did well, in fact, i should have hung on longer, so
there you go. Have a good weeekend. R !
Comment by Bert — September 8, 2012 @ 8:20 am
Hang in there, my friend, patience is a virtue…
Comment by Jon - BMR — September 8, 2012 @ 8:36 am