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CDNX

We changed our “cautious” stance on the CDNX to outright “bullish” last Monday morning which in retrospect was obviously a wise move as the Venture enjoyed a superb week with strong volume and advancing prices.  The CDNX was up 43 points for the week (26 of those points came Thursday) and closed at 1603, its first close above 1600 since January 19.  It now appears certain in our view that the CDNX will soon break out to a new 52-week high and test the 1,700 level in April (potentially, this could also mark the beginning of a parabolic move that could take the Index even higher – close to 2,000 – before an overdue 20 to 30 per cent correction sets in.  This would require a new all-time for gold).  Given the power behind this latest move, in terms of volume and price action, it seems unlikely the CDNX will stall out at its 52-week high of 1629 – we believe that resistance will be overcome rather easily.  All the CDNX’s moving averages are now in bullish alignment with a reversal today in the recently declining 50-day SMA which has now turned positive – a very bullish development.  This market is on the move.

The previous week’s action in the CDNX tipped us off that a major upside move was quite possibly in the cards as the Index held up so well in the face of weakening gold prices and a declining 50-day SMA.  The Venture also hit  50 on the RSI last week which is where it has consistently staged significant rallies from in the past.

As we’ve stated here many times, the CDNX has proven to be the most reliable leading indicator of the precious metals and commodities markets.  What the CDNX has been saying consistently for some time now is that those markets are going higher, and indeed that is proving to be the case.

Gold is looking a lot stronger now from a technical standpoint.  It’ll be very interesting to see what kind of follow-through there is next week from the big move we’ve seen in recent days.  Based on the signals the CDNX has been giving us, it’s very likely gold is on the verge of a powerful breakout.

The BullMarketRun Portfolio

As expected, Gold Bullion Development (GBB, TSX-V) found major support in the upper 20’s this week and made an impressive turnaround Thursday when it dropped as low as 27 cents and quickly reversed to finish the trading week at 29.5 cents, a 3 cent increase from March 26…there is little doubt in our mind that Gold Bullion is going to enjoy a spectacular April…the company needs to close its private placement first, however, and we expect that to happen by the end of next week…Gold Bullion’s explosive chart is a picture that tells a thousand words about the Granada Gold Property and its potential to deliver a major bulk tonnage, open-pit deposit…

Seafield Resources (SFF, TSX-V)

Seafield looks ready to start moving again, especially after Wednesday’s sudden drop to 21 cents – just below its 100-day SMA…we saw the same thing out of Seafield in early December and the stock then proceeded to double in price in the span of about a month…Seafield finished the week strong, closing at 26.5 cents for a half-cent weekly gain…we should see some exploration news out of the company’s Quinchia properties in Colombia this month with drilling commencing in the latter half of this second quarter…

Sidon International Resources (SD, TSX-V)

We added Sidon to the BullMarketRun portfolio Wednesday morning when it was sitting at just 5 cents…this company has enormous blue sky potential and reminds us a lot of the above two former fledgling situations that we have scored hugely on – Gold Bullion and Seafield Resources…we uncovered Gold Bullion when it was at 7 cents last December (up 321% since then) and Seafield when it was at 6 cents last summer (up 317% since then)…Sidon has signed a letter of intent for an option to purchase an initial 80% interest in the highly prospective Morogoro East Gold Property in Tanzania…Morogoro is a potential company-maker project for Sidon which, like Gold Bullion and Seafield, will have to raise some capital to make things fly…some astronomical grades have been pulled out of parts of Morogoro by local miners over the last number of years…there is clearly a high grade zone for Sidon to explore there…gold exploration and mining have exploded over the last decade in Tanzania with the African country moving from one million ounces of reserves to 50 million ounces…Morogoro is 100 kilometres south of Canaco’s (CAN, TSX-V) Handeni Gold Project which has delivered significant results and powered that stock from a nickel to a high of 75 cents…Sidon was the most active stock on the Venture Exchange Thursday, trading a whopping 13 million shares…it got as high as 7 cents where it ran into resistance…it closed at 6 cents for a 1.5 cent gain on the week…the high volume suggests the stock is moving from weak hands into strong hands…Sidon could really start to fly after churning through some more stock and breaking down the wall at 7 cents, its 52-week high…its current market cap is only $4.7 million…

Kent Exploration (KEX, TSX-V)

Kent continues to struggle and is trading once again between its 100 and 200-day moving averages…investors with a 3 to 6 month time horizon should do extremely well with Kent…for those with that kind of longer term outlook, now is clearly the time to be accumulating this stock…keep in mind also the “dividend” Kent will be paying out in the form of shares in spin-off Archean Star Resources in this 2nd quarter (the shareholder vote on this is April 30)…40,000 shares of Kent gives you 10,000 shares of Archean Star which could come on the market around the 25 cent level…Kent closed the week at 16 cents, down half a penny from the previous Friday close…

Greencastle Resources (VGN, TSX-V)

As with Kent, patience is required with Greencastle at the moment…this is the only stock in our portfolio that is actually down in value from when we first highlighted it…we are not concerned, however, as Greencastle has far too much going for it…at this week’s closing price of 13 cents, the company is essentially trading for only its cash value…that’s always the best time, actually, to be buying Greencastle as long as you’re prepared to wait for the inevitable move higher…there is a lot of unlocked value here…

Richfield Ventures (RVC, TSX-V)

Richfield has finally pulled back into a zone of strong support as we had anticipated…it was down 8 more cents this week to $1.73, a 52-cent fall from its $2.25 March high…Richfield begins a 25,000 metre drill program at its Blackwater Project in central British Columbia this month…Blackwater has a great chance to develop into a world class bulk tonnage deposit…Richfield will first try to deepen hole BW 59 (1.25 g/t Au over 329 metres) – the final hole it drilled last year which ended in five metres of 9 g/t Au…they will also be drilling for possible extensions of the mineralization to the northwest, southwest, south and east of BW 59…these holes will be drilled vertically to depths of 500 to 600 metres from surface…following this Phase 1 program, Richfield will then start 15,000 metres of definition drilling to establish a NI-43-101 compliant resource…on a fully diluted basis, Richfield’s market cap is only $70 million which by year-end could easily be four or five times that amount if they’re able to determine an inferred resource of at least 3 million ounces…

Colombian Mines (CMJ, TSX-V)

Colombian dropped a penny this week to $1.30 where it seems to have some strong support…this stock’s chart is a thing of beauty with a nice consistent advance over the last six months…we would be shocked if CMJ doesn’t take a run to at least the $2.00 level sometime this quarter…CMJ continues to drill its Yarmualito Gold Property and has a huge portfolio of properties in Colombia which also makes it a potential takeover target, especially if Yarmualito delivers some good results…