BullMarketRun.ca

Gold is off sharply this morning but the bleeding on the CDNX has stopped, at least for now, as the Venture is up 4 points to 1361 as of 8 am Pacific time in sympathy with significant gains in New York and Toronto…the CDNX has fallen below its rising 300-day moving average which it did every year during the 2003-2007 climb, so we continue to view this as a normal correction within an ongoing bull market…Gold has slipped $18 an ounce to $1,191, a 6-week low, and has clearly suffered some technical damage which likely means more weakness ahead…an astonishing development over the last week has been the extent of the slide in Gold Bullion Development (GBB, TSX-V)…we did state GBB was in overbought territory in the upper 60’s and a pullback was expected, but a drop from 70 to 45 cents over 6 sessions meant some investors were pushing the panic button and throwing GBB overboard for no logical reasons…with regard to Gold Bullion we’ve always stated here it’s important to keep an eye on what Jordan Capital is doing…from June 28 through yesterday, Jordan sold but 15,000 shares and bought 224,000…Jordan was first on the scene with Gold Bullion – they handled the financing at 7 cents last December – and they remain as bullish as ever on this play as we do here here at BMR…investors are still waiting for initial drill results from Granada but everyone should remember it took 2 and a half months from the start of Phase 1 drilling before the first big batch of results (including GR-10-17) came in…some 16-cent warrants expire July 10, so this is no doubt contributing to some of Gold Bullion’s current weakness…the stock is trading huge volume today (over 3 million shares in the first 1.5 hours) and is currently down another 1.5 cents  to 46 cents…Gold Bullion does have very strong technical support in the low to mid-40’s…an interesting development with Seafield Resources (SFF, TSX-V)…the company has arranged a conference call for 11 am eastern time tomorrow with Ian Park as moderator…it’s clear Seafield wants to get the message out just how undervalued its Colombian assets are…Seafield is down half a penny to 17.5 cents…Kent Exploration has increased its financing from $600,000 to $900,000, a very positive sign…at 11 cents and with a much healthier balance sheet, Kent represents outstanding value for long-term investors…Fire River Gold (FAU, TSX-V) is up 2 pennies at 58 cents this morning and has held up extremely well through this market weakness…