Gold has traded in a tight range between $1,728 and $1,737 so far today…as of 6:00 am Pacific, and just a few hours before the FOMC meeting concludes, the yellow metal is up $2 an ounce at $1,733…Silver is off a dime at $33.21…Copper is flat at $3.66…Crude Oil has gained 34 cents to $97.35 while the U.S. Dollar Index, which has hit a 4-month low this week, is unchanged at 79.67…
The price of Gold has climbed more than 2% so far this month (Silver has risen much faster) following a near 5% gain in August when central banks around the world appeared more willing to take up further stimulus measures to aid a frail global economy…yesterday, bullion hit its loftiest since late February at $1,746.20 after a German court ruling in favor of the euro zone rescue fund lent support to an already rallying market, anticipating increased money supply…the greenback, meanwhile, has taken a beating with the U.S. Dollar Index falling below a key support level…
The Fed winds down its two day meeting today with a statement at 9:30 am Pacific…it then issues revised economic forecasts at 11:00 am Pacific followed by a press briefing by Chairman Ben Bernanke…an exclusive survey by CNBC showed that more than three-quarters of the 58 money managers, strategists and economists who responded believe the Fed will announce a new program of quantitative easing, or asset purchases, after today’s meeting (historically, though, the Fed has acted only during periods of weakness in the equity markets)…another 86% believe the Fed will announce that it will purchase a mix of Treasurys and mortgage-backed securities when it does launch its third QE program…expectations for QE3 have been running high all summer with equity markets rising as a result…but a dismal August jobs report last Friday turned around even some non-believers… ironically, the CNBC survey showed a majority do not expect QE3 to help lower the unemployment rate…
U.S. Household Income Falls To Multi-Year Low
The income of the typical U.S. family has fallen to levels last seen in 1995, a long and pernicious slide that likely means it will be a generation before Americans regain the peak income levels reached at the end of the 1990’s…a report from the Census Bureau today said annual household income fell in 2011 for the fourth straight year to an inflation-adjusted $50,054…median annual household income – the figure at which half are above and half below – now stands 8.9% below its all-time peak of $54,932 in 1999, at the end of the 1990’s economic expansion…other measures of well-being in the report were more positive…the poverty rate, which had risen in the past four years, held steady in 2011, and the number and share of people without health insurance fell…the shift in health coverage is in large part due to more Americans getting covered by government programs such as Medicare…the report covers the second full year of the economic recovery…however, it doesn’t capture the income gains that, though slow, were notched in 2012…it also doesn’t reflect gains in assets, such as growth in the stock market or home values that, while still depressed, have started to inch up…
Wall Street Rooting For Romney But Anticipating Obama Victory
Wall Street appears to be planning for a victory by President Obama but hoping for one by Mitt Romney…in an unscientific poll, 46% of respondent to the September CNBC Fed Survey said they expect President Obama to win re-election…only 24% believe Republican Presidential Nominee Mitt Romney will get the job…but asked who they preferred, 53% of respondents picked Romney and just 18% chose Obama…for both categories, a third said they didn’t know or were unsure…the survey is used primarily to gauge both sentiment for future actions by the Federal Reserve and the outlook for economy and markets…it had 58 respondents, including top money managers, strategists and economists…”Like Europe, when it comes to our biggest needs we have tended to kick the can down the road,” said Robert Brusque of Fact and Opinion Economics, who favors Romney…”We need someone to kick us in the can to get us going in the right direction on a different road”…the latest campaign contribution numbers back up the CNBC survey…through August 21, data from OpenSecrets.org show 77% of campaign contributions from the securities and investment industries going to the GOP…in 2008, Democrats beat out Republicans in Wall Street fundraising by 58% to 42%…
Today’s Markets
Asian markets were mixed overnight with China’s Shanghai Composite declining 16 points to 2110…European shares are mixed as well this morning ahead of the Fed announcement…meanwhile, trading volumes in European stocks, despite the market rally, have sunk to their lowest levels in 12 years as the euro zone debt crisis has sapped the appetite for the region’s equities and money has headed elsewhere…stock index futures in New York are pointing toward a slightly negative open on Wall Street…the Dow hit a nearly 5-year high yesterday as it closed at 13,333…the Venture Exchange enjoyed a strong finish to the day yesterday, closing 8 points higher at 1283 on the best volume in nearly two months…
Venture Exchange vs. U.S. Dollar – Bullish Signs For The Venture
The Venture Exchange performs best during periods of U.S. Dollar weakness…this is another reason we’re bullish on the outlook for the Venture over the next several months at least, given the recent change in trend for the greenback…below is a 5-year weekly chart from John that shows this inverse relationship and how the Venture is just now beginning to break above a downtrend line relative to the U.S. Dollar that has been in place since early last year…this is hugely significant, and we expect this change in trend will become much more definitive in another month or so…
Comstock Metals (CSL, TSX-V)
As we mentioned in Monday’s Morning Musings, Comstock Metals (CSL, TSX-V) is in breakout mode and is looking very strong now that the company has launched a drill program at its QV Project in the White Gold District in the Yukon…drilling is testing strong Gold enrichment discovered in trenches at the VG zone, including 3.31 g/t Au over 95 metres from trench QVTR12-06 and 3.77 g/t Au over 45 metres in QVTR12-15…the Gold mineralization occurs within lode quartz-carbonate veins, stockworks and breccias, as well as pyrite veinlets, fractures and disseminations, within a northeast-trending zone of strongly quartz-sercite-carbonate-altered felsic schists and granitic intrusives that has been defined over a minimum strike length of 390 metres, and is open to both the east and west…additional trenching and soil sampling are also being conducted in an effort to more closely define the limits of this Gold anomaly…continued speculation will keep CSL very active (and potentially volatile) but this one obviously could really power higher in the event that drilling confirms the trenching results…CSL climbed another 7 cents yesterday to close at 43.5 cents…below is an updated chart from John…
Kaminak Gold (KAM, TSX-V) – Technical Breakout
Kaminak Gold (KAM, TSX-V) has long been one of our favorites in the Yukon, and its chart is showing a confirmed breakout through a downtrend line that has been in place for a year…KAM closed up 12 cents yesterday to close at $1.94…
Prodigy Gold (PDG, TSX-V)
Prodigy Gold’s (PDG, TSX-V) Magino Gold Project in northern Ontario is coming along very nicely, and PDG is another excellent example of a stock that has recently broken out above a downtrend line…this occurred back on August 21 and PDG is up nearly 20% since then…yesterday, there was a hammer reversal with the stock touching its supporting EMA-20 and reversing higher to close at 72 cents…with a substantial resource at Magino, PDG should be a strong performer through the end of the year if Gold shoots higher as expected…
Note: John, Jon and Terry do not hold positions in CSL, KAM or PDG.
BMR – Wall Street Rooting For Romney
Bert – For goodness sake, what a surprise, they won’t get their taxes cut.
If Obama wins, the money pockets will have to help pay for the mess we are
in today. It will look good on them. Can you imagine one of the Wall Street
dudes got a $40 million bonus,,, you read it correctly, $40 million bonus.
For what it’s worth, i am against everything Wall Street is for. I am so
proud to be a lowly person, who worked long hours for what i have. I have
nothing against the rich, if they become rich by working their arses’ off,
but when they become rich on the backs of the lowly folk, i become somewhat
angry…R !
Comment by Bert — September 13, 2012 @ 5:23 am
We may be in trouble, if Bernanke don’t give the market something
to chew on today. It’s difficult trying to profit under such conditions. R !
Comment by Bert — September 13, 2012 @ 6:15 am
BMR
Could you please post a chart on NES Newstrike, looks like it broke out too. Great drilling results released too.
thanks
Comment by greg — September 13, 2012 @ 6:41 am
I’m beginning to ask myself, if it’s really worth the effort to
put together posts, only to have them delayed, enough so, that
some become obsolete. We are of the understanding that it is to
protect us from verbal abuse of our submissions. Although i don’t
like being verbally abused, there has to be a better way & if i
am one of the victims’, why should the rest of you suffer. R !
Comment by Bert — September 13, 2012 @ 7:02 am
BMR
Following from Stockcharts
Thank you for your recent symbol request.
Based on your suggestion, we have added [PPP.V] to our charting database:
Comment by Bert — September 13, 2012 @ 7:07 am
Got the same message from Stockcharts:
Based on your suggestion, we have added [PPP.V] to our charting database
looks like it worked
Comment by erik — September 13, 2012 @ 7:18 am
Hi Folks
Your requests for the Stockcharts listing has worked. They just informed me it has been or will be included on their database. There will be a PPP chart tomorrow.
many thanx
Comment by John - BMR — September 13, 2012 @ 7:39 am
Bert
me thinks you are being too hard on yourself
I look forward to your musings
cheers
Comment by ChartTrader — September 13, 2012 @ 7:46 am
btw that last post of mine was within seconds of being posted
Comment by ChartTrader — September 13, 2012 @ 7:47 am
Do silver projects enjoy the same price appreciation as gold projects? Thanks. odin1
Comment by odin1 — September 13, 2012 @ 8:16 am
Is this the QE3 the market has been starving for? Can we finally see green across the board on the ventures?
BMR is this a headfake or the real deal initiative that’s going to thrust the indices to serious highs?
Comment by alex — September 13, 2012 @ 9:09 am
Dan hits the nail on the head as usual
http://traderdannorcini.blogspot.ie/2012/09/the-fed-and-ecb-determine-to-destroy.html
Comment by Hugh — September 13, 2012 @ 10:30 am
Looks like RBW will close below support – none of the recent NRs have given it a jolt through the supposed $0.25 resistance. In fact, it’s about to sink below $0.20 support.
If assays aren’t spectacular, this will fade out like 90% of the ventures and probably trade at a dime if we are lucky.
Ventures are on pace to trade at record volume by the eod today in nearly 8 months – and RBW? wellll……… not even close. 20 will be broken today and probably find support around $0.18 where the recent financing was done.
Anybody care to disagree? BMR feel free to chime in and tell me otherwise.
Comment by Dave — September 13, 2012 @ 10:36 am
Driven identifies Drill Targets at Blackwater East
TSX Venture Exchange: DVV Frankfurt Stock Exchange: DV1
Driven Capital Corp. (TSXV: DVV) (FSE: DV1) (“Driven” or the “Company”) is pleased to announce preliminary results from the geophysical program conducted this summer on its 100% optioned Blackwater East project in the Nechako Plateau region of central British Columbia.
Thirty line kilometres of ground induced-polarization (IP) and magnetic surveying was completed over the southeastern portion of the property. This area had been identified as prospective from previously completed soil geochemical surveying and prospecting which was integrated with public domain regional geological mapping and airborne magnetics. Several well-defined IP anomalies trend northerly and northwesterly and occur adjacent to a major regional lineament believed to be a fault structure. The main north-south anomaly, which has been traced for over 1,800 metres, appears to be located near the western boundary of a felsic volcanic sequence which shows variable sericitic alteration along with local zones of phyllic (quartz-sericite-pyrite) alteration. Additionally, this area is underlain by a deep magnetic feature approximately 2 kilometres in diameter, which may represent a buried intrusive. Such an intrusive could represent the source of the alteration fluids and anomalous zinc, lead, silver, gold and copper values identified by the Company’s soil sampling in 2011.
The coincidence of anomalous metals in soils, major fault structures, felsic volcanic host rocks, IP chargeability zones possibly indicative of sulphides, and low resistivity zones possibly indicative of clay alteration all located adjacent to an interpreted intrusive body are considered indications of the possible occurrence of intrusive-related gold and/or base metal mineralization. Driven intends to test these areas with a first-phase drill program, the permit for which has been awarded by the BC Ministry of Mines (see Company news release August 9, 2012).
“Driven is actively evaluating alternatives in an effort to commence drilling at Blackwater East as soon as practicable,” stated Toma Sojonky, CEO. The property is adjacent to the eastern/southeastern boundaries of New Gold Inc.’s Blackwater gold project, which hosts currently defined indicated resources of 7.1 million ounces of gold, and additional inferred resources of 2.5 million ounces of gold; refer to New Gold Inc.’s news release dated July 18, 2012 for more details.
Lindsay Bottomer, P.Geo., a Director of the Company, is the Qualified Person as defined under National Instrument 43-101, who has reviewed the technical information in this news release.
Driven Capital Corp. is deploying its accomplished technical and management team toward the exploration of its portfolio of highly prospective precious metals projects in the Yukon and British Columbia.
On Behalf of the Board of Directors of Driven Capital Corp.
“Toma Sojonky”
Toma Sojonky, President & CEO
Comment by Bert — September 13, 2012 @ 10:44 am
Dow up over 200 good time to go short as for rbw nothing new same old crap
Comment by Gerry — September 13, 2012 @ 10:54 am
@gerry. Haha you go ahead and do that partner!!!! Another buffet wanna be!!!!
Comment by Heath — September 13, 2012 @ 11:36 am
Ladies and gentlemen, the ventures will hit 100 million for the first time in a very long time.
Comment by Dave — September 13, 2012 @ 11:42 am
RBW- ANON & CANNACORD SAME SELLER???????
Comment by BRIAN — September 13, 2012 @ 11:43 am
RBW unbelievable
Comment by Kalkan - Sweden — September 13, 2012 @ 12:37 pm
rbw – pathetic. i can t believe i bought that piece of crap.
Comment by mike — September 13, 2012 @ 1:06 pm
Not to sure why VGN (Deveron) won’t drill there property in the Blackwater Area. BMR, can you comment on the lack of action from VGN? Also on why VGN felt the need to spin this property off into a new company?
Comment by Chris — September 13, 2012 @ 3:30 pm
@Dave… I do not disagree with you but still I have full confidence of RBW to jump double, or even triple when the big players are there. If it falls below 20 cents, I will scoop more… No intention to sell off a single share … my patience will bring me the luck in the coming days.
Comment by Theodore — September 13, 2012 @ 4:55 pm
Have you noticed that some of our most interesting posters, seems
to have left this site. I won’t mention any names, but for those,
who have followed them, will know who they are. That’s the bad
news, now for the good news, as i type, copper is up 0.10, that’s
correct friends, up 0.10. That bodes well for the market, along with
gold, which is also shining. A lot can happen by the time this post
can be viewed, but for now, i feel good, that better days MAY be
ahead for us. I still can’t quite understand what is going on with
RBW, another newsletter writer, who visited the site, wrote glowing
words about our company, plus the venture crossed above 1300 today, yet
RBW disappointed us. Not that i expect it to take off without drilling
news, but i did expect it to crawl up to 0.25, the price a U.S. writer
stated that anything below, would be a great deal. The company must
know what is going on with all the selling & because they haven’t
arranged for someone to take out the big seller, i have no choice but
to believe, they are content to have the stock trade at around 0.20.
The companies, the market makers, the brokerage houses, et al are
closer to each other than we think. Have you noticed how some stocks
take off before news, why do you think that happens ? Why do some
folks get to buy in advance of news ? while we, the lowly folk struggle
to find out what the heck is going on… I can go on & on, but i am
tired & i want to go to bed, but i didn’t have a drink, well, i had a
glass of milk. Good night & good luck. R !
Comment by Bert — September 13, 2012 @ 6:00 pm
Bert
you crack me up! and you are right about the companies, market makers and brokerage houses all being in bed together, somebody wants this stock down here to accumulate a large position all IMO.
Comment by greg — September 13, 2012 @ 7:10 pm
From my experience in the venture market,I believe that when a company such as RBW is trading at this level and a bunch of other stocks are increasing in value,it makes me even more confident that RBW really has the goods and in due time everyone will be rewarded.
If RBW was trading in the $.30 – $.35 range at the monent on no real news I would be more afraid to be holding the stock than at this level.When the news does come from RBW,the stock will move up very rapidly,
Comment by Batterup23 — September 13, 2012 @ 7:46 pm
RBW has a new, dated 13 September, RBW Top 10 Key Facts. I cannot blame them for not trying. The first fact augurs well.
Comment by Alexandre — September 13, 2012 @ 8:30 pm
@Chris – try calling the company and asking them …oh that’s right they don’t answer the phone!
Comment by Hugh — September 14, 2012 @ 1:13 am
8 a.m. Newfoundland time & i am able to state, thank you God for waking
me up again this morning. Great morning, the Sun is out, giving everyone
& everything a boost. The birds are chirping, as they enjoy the seed, i
have placed in their feeder. The trees are still full of leaves, but the
colors are changing, as they prepare to fall to the ground & cause more
work for your buddy Bert. By the way, is this a nature or stock site ?
Back to the stock market, i am pleasantly surprised this morning, 3 hours
to go before market opens, but if the futures stay as they are, we are in
for a good day. Dow futures are up by 59.00, gold 6:10, silver .027 &
last but not least, copper up .124, an increase over last night. I was
disappointed yesterday, not only because of RBW, but with stocks in
general. Bernanke pleased the markets & they responded in kind, but the
stocks i have been following just marked time, which has been the pattern
for sometime now. It’s difficult watching one’s stocks, day after day,
trade in the same range, but i just cant help it, because things do happen
that way… R !
Comment by Bert — September 14, 2012 @ 2:51 am