BullMarketRun   BullMarketRun.ca

A Daily, Vibrant Voice Focused on Speculative Opportunities,
Commodities, and Economic & Political Trends Impacting
The Resource Sector & Equity Markets
 

"Market-Trouncing Returns Through Unbeatable
Technical & Fundamental Analysis of Niche Sectors"

October 3, 2011

BMR Morning Market Musings…

Gold is firmer today on euro zone debt concerns…as of 7:50 am Pacific, the yellow metal is up $23 an ounce at $1,648…Silver is 52 cents higher at $30.49…Crude Oil is off another $1.38 to $77.82…Copper has fallen 9 cents to $3.05 while the U.S. Dollar Index is up one-quarter of a point (bad sign) at 79.17…Copper is now at a 14-month low, trading at levels not seen since July, 2010…the action in Copper is critical in terms of gauging the overall health of the global economy, and additional weakness in Copper can be expected over the near-term according to John’s chart…

Silver has recovered nicely since trading as low as $26 last Monday…John’s chart, however, shows that Silver is likely to test its long-term trendline at $25 this month…

The CDNX is down another 22 points at 1445…yes, this market is oversold based on RSI but one must keep in mind that such an oversold state could persist for several months – the opposite of what occurred in late 2010 and early 2011 when the Index stayed extremely overbought for an extended period…what is really troubling is that it appears to be inevitable that the CDNX’s 300 and 500-day moving averages (SMA) are going to reverse to the downside sometime this quarter which will push this market even lower…the CDNX is an extremely reliable leading indicator of the broader markets and the global economy as a whole, so a fourth quarter that could even be worse than the 23% third quarter drop suggests there could soon be blood and panic in the streets…of course that’s when fortunes are born, so those with cash should remain patient and wait for what could be some incredible opportunities in the equity markets…

Default is looking increasingly inevitable in Greece with the announcement over the weekend that the country won’t be able to meet its 2011 deficit target…one of the biggest problems in Greece (and elsewhere) of course is an “entitlement culture” that has made people think they need government in order to survive…the reality is that debt, at both personal and government levels, puts individuals and countries in a state of bondage…governments are run by people and they will always have a tendency or a desire to spend more than they take in, and the only answer to that is to keep government limited and constrained…the bigger government becomes, the more it spends, and the more it spends the bigger it becomes…it’s a vicious circle…

Governments around the world (even in so-called “safe” jurisdictions like Ontario and Quebec) remain grave threats to investors’ capital and pocketbooks…another excellent case in point is now Brazil where the government is preparing to vote on three new mining bills by mid-October…under consideration will be bills that could double royalties, change the way royalties are calculated (naturally not in favor of the mining companies) and a special participation tax based on profits…why is it the left always complains about “corporate greed” and never mentions government greed (and stupidity)?…

Quebec is considering controversial changes to its mining and exploration laws, while in Ontario it appears the NDP could make a strong enough showing in Thursday’s provincial election to thwart the Liberals or Progressive Conservatives of a majority and acquire what would essentially be a “veto” over economic and environmental policies…Andrea Horwath’s socialist NDP in Ontario couldn’t run a lemonade stand, so the fact that party could be in a position to significantly influence policymaking at a time of global economic turmoil is like putting a drunk at the wheel of a car on a busy freeway…that wouldn’t be the first time that’s happened in Ontario politics and the damage Bob Rae’s NDP did was profound…hopefully, over the next few days, Ontario voters will look beyond the deceiving charming smile of Horwath and realize she’s the worst choice of three poor choices overall…

11 Comments

  1. it’s quite an interesting day…. loads of buying opportunities, just don’t know if I should wait longer before I do! :S 🙂

    Comment by M. — October 3, 2011 @ 11:53 am

  2. What a day ! GBB dropped to 25.5 cents and no doubts that the 25 cents level may not be able to stay long. Most of small investors who bought this stock at 50-60 cents level are still holding them. The people who bought recently (within 2-3 months) want to dump at when it comes to a higher price. Unfortunately, the price keeps on going down as I said before… it will hit 25 cents mark. BER again, lost another 20% in value and I will suggest not to touch it at this time. I am holding a portfolio of this one… poor me. NAR came to 11.5 cents and strong support 10 cents level. TYP lost 1 cent to close at 53 cents. I like this one but the market does not look too good. My sixth sense, the market will further adjust with 20%…. hold the cash for the cheap cheap stocks…. . SFF lost one cent to close at 18 cents and it cannot beat the downward market.

    Comment by Theodore — October 3, 2011 @ 12:49 pm

  3. Hello, anyone have support and resistance bands for VGD, AGE and CUI? With the CDNX now below 1400 I’m expecting these to continue a slow unwind of their sp even in the event of any news? Is anyone still holding or is it wiser to try to sell on any sp resilience and buy back after a drop? A real shame for the potential of these stocks and with news overdue.

    Comment by Andrew — October 3, 2011 @ 1:54 pm

  4. Let the Greece default. I had it with its government and citizens. After all, it is people who elect the government, so the blame can’t go to the governments entirely.

    There is hardly any confidence in the market, especially the Venture. Hence the Stochastics Hinge didn’t forms On CDNX. I don’t see any meaningful recovery for sometime.

    Dave, good call on CDNX falling to 1400. How did you figure that?

    Comment by Bruce — October 3, 2011 @ 3:31 pm

  5. Bruce you must be new in investing like the folks at BMR. I am sure john an Jon are truely two good guys and excellent writers but I notice since the start they were very wet over the belt in the world of investing. My self I went threw all crashes since 1987 and with any trouble I could see this one comming over 1 millions miles away. Since march I tried my best to sound the alarm for you guys and girls and I hope I had some succes with a few out there. finally ,I hope john and jon are learning threw these bad times and wish them much futur succes in there website. Finaly , if you want to have more credebilty I honnestly think you should stop mixing up ancient relegious beliefs with investing and, I agree with you that we are missing strong leadership in the world of politics but stay out of it… You are going to loose many followers if you keep pushing your politics views.

    Sorry for my English.

    Your friendly Andre.

    Comment by Andre — October 3, 2011 @ 4:52 pm

  6. Totally agree with Adre here, stop pushing political views, you are offending some of us who stil have some faith in people before money and gold!

    Comment by A — October 3, 2011 @ 6:46 pm

  7. Bruce – just looking at the 1,3,5, year chart, reading analysts reports since March, and knowing a lot about world history. Unfortunitely, we could continue below 1400 now. Too much unsettled and we could see 2008 all over again by mid- Nov. I am in total cash right now.

    Comment by dave — October 3, 2011 @ 9:20 pm

  8. So any ideas or guesses where the bottom is? Looks like some really good buys out there right now, but may be better buys tomorrow?

    Comment by GREG H — October 4, 2011 @ 7:57 am

  9. Andre – most investors come to this site to learn from the excellent DD that John and Jon offer for free. They don’t tell you to buy or sell shares. They look at companies that offer good growth potential in what is a secular bull market for gold and they do some great coverage of those stocks. Politics and economics are inextricably linked so telling people not to discuss them does not insinuate, to me at least, that you are are the wise old investor you are claiming to be.

    Comment by Hugh — October 4, 2011 @ 8:25 am

  10. Greg H. Why don t you find your answer in your bible. I hope the next time you will think twice before insulting me. the bible of investing is listening to peoples who have been investing for many years and have gain the knowledge and experiences to better guide others in not repeating the same errors. Now go back reading your mathew 7 where the dogs ang pig are stepping on you.

    Comment by Andre — October 4, 2011 @ 8:27 am

  11. I have to agree with Andre stop the pushing of politics I’m sick of hearing how misguide Obama and his admin is. I’lltake Obama over rick Perry or Sarah pallin any day of the week

    Comment by Dan — October 4, 2011 @ 9:41 am

Sorry, the comment form is closed at this time.

  • All Posts: