BullMarketRun.ca

Gold has turned lower on a positive U.S. jobs report…as of 6:00 am Pacific, the yellow metal is off $17 an ounce at $1,682…Silver has fallen 36 cents to $33.56……Copper is up 3 pennies at $3.82…Crude Oil has gained 53 cents to $107.11 while the U.S. Dollar Index has shot up two-thirds of a point to 79.77…don’t worry about Gold…there is plenty of physical demand to support this market and the overall global environment for Gold remains very bullish…

China’s Inflation Slows

China’s annual rate of consumer inflation slowed sharply to a 20-month low of 3.2%  in February, comfortably within Beijing’s 2012 target of 4%…abating price pressures give China plenty of room to further loosen monetary policy to support slowing growth…fresh data out this morning show Chinese factory output retreated to August 2009 levels while fixed asset investment, which accounted for 54% of China’s economic growth in 2011, grew slightly ahead of expectations (21.5%) in the first two months of the year but at the lowest level in nearly a decade…retail sales grew 14.7% in January-February from a year earlier, short of the 17.% that was expected…China is very effective at engineering “soft landings” and an overall 2012 growth rate in excess of 8% would be bullish for commodities and financial markets…

Today’s Markets

Asian markets were up overnight with China’s Shanghai Index climbing 19 points to 2439…European markets have turned modestly higher after a better-than-expected U.S. non-farm payrolls report that came out about 30 minutes ago at 5:30 am Pacific…futures in New York are pointing to a positive open on Wall Street as optimism continues to grow regarding the outlook for the U.S. economy…

The Venture Exchange found support right around 1600 the other day (25 points above its rising 100-day SMA)  and that very well could have been the bottom in the five-day mini-correction that set in February 29…the primary trend is up so embracing weakness (buying into it as opposed to selling into it) is the key to maximizing profits in this market…

Rainbow Resources (RBW, TSX-V)

Rainbow Resources added another 1,500 hectares to its Big Strike Project land package yesterday, and also announced that a comprehensive technical report on its West Kootenay properties is expected next week…this should include results of fourth quarter exploration work completed by Rainbow at the International and elsewhere…if Rainbow has been able to confirm historical high-grade assays at the International, look out…a couple of things we picked up on in yesterday’s news…first, the Rainbow group clearly has its pulse on what’s happening on the ground in the West Kootenays and we suspect that’s because of David Johnston’s extensive work in the area over the last five years through the privately-held company that Rainbow acquired (Braveheart Resources)…it appears Rainbow has picked up some strategic claims in the immediate vicinity of Anglo-Swiss‘ (ASW, TSX-V) Kenville Gold Mine where drilling commenced more than a month ago and initial results could come as early as next week according to ASW’s latest news release (February 1)…the Kenville Mine is extending to the south and at depth …other good news for Rainbow is that, according to ASW, “a newly interpreted regional structural splay located on the west half of the Kenville Gold Mine Property has also been identified as a potential shear system capable of hosting Gold veins and will be drill tested during the current program”…a reliable source has confirmed to BMR that due to financial constraints, Anglo-Swiss couldn’t continue with options late last year on certain ground in the Nelson Gold camp…Rainbow has jumped in and could reap the rewards…a “quartz-tourmaline stockwork system” at Referendum is music to our ears, and obviously Rainbow must like what it sees at its Rhea Property as they continue to add ground contiguous to it…what’s also interesting about yesterday’s news is that not only is Rainbow going to be very aggressive in developing its Big Strike Project, but a quote from Johnston stated the company is “selectively targeting under-explored Gold and Silver opportunities in this prolific region (West Kootenays) and elsewhere in other friendly jurisdictions…the Rainbow group includes a part-owner of the Calgary Flames (Bob Libin), a mining engineer who helped raise millions to lift Grande Cache Coal out of difficulty and eventually to great success (Jim Durham), and a highly respected geologist who has been involved in some significant discoveries (Bruce Durham)…Rainbow is on track for another breakout through resistance at 30 cents and that could certainly occur at any point now…

Anglo Swiss Resources (ASW, TSX-V)

Yesterday’s news from Rainbow prompted us to take a closer look at Anglo-Swiss which has many more shares outstanding but is trading at just 6 cents…it appears to have bottomed out on the charts, as John shows below, and as a result we’re adding it to our “Watch” list “A” group…

Note: John, Jon and Terry do not hold positions in ASW (John and Jon hold positions in RBW with Jon adding to his position yesterday).

Gold Bullion Development (GBB, TSX-V)

The drills are turning again at Granada with GBB drilling an area of the LONG Bars Zone – the north part of the eastern Extension – that has shown great promise to date…what has us particularly excited is that two deep holes are being drilled (with a minimum of one wedge per hole) to be followed by a third hole strategically located between two cross-sections and the existing known drilled area…this is going to be highly interesting and what it shows is that SGS, the company’s new geological consultant, has the right approach to understanding this system…technically, GBB is looking much healthier and a move through the 100-day moving average (SMA) at 17.5 cents for the first time in months appears imminent…after being in decline for about a year now, the 100-day is flattening out and has a good chance of reversing to the upside in the coming weeks…below is John’s updated GBB chart…

Note: John and Terry hold positions in GBB (Jon does not).

Seafield Resources (SFF, TSX-V)

Seafield had a strong day yesterday, climbing from 16.5 cents to close at 19.5 cents on volume of 1.5 million shares…Seafield has been going in the right direction under Cesar Lopez and we believe this could be a very strong year for the company as it continues to develop its Quinchia Project in Colombia and examines other opportunities as well…

Note:  John and Jon do not hold positions in SFF (Terry does).