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September 8, 2015

BMR Morning Market Musings…

Gold has traded between $1,118 and $1,127 so far today…as of 8:30 am Pacific, bullion is up $3 an ounce at $1,127…Silver has added 27 cents to $14.85…Copper has surged 9 cents to $2.43…Crude Oil is up slightly at $46.25 while the U.S. Dollar Index has fallen one-quarter of a point to 95.96

Gold consumers in India, the world’s biggest users after China, are expected to increase purchases for festivals during this final half of the year, given that the metal has become cheaper, according to the World Gold Council…imports in August are estimated between 95 and 100 tonnes, compared to 67 tonnes the year prior…

Copper has strengthened today after Glencore, the world’s largest supplier of the metal and its 3rd largest producer of mined Copper, said it would cut output as part of a financial restructuring…Glencore said it will suspend Copper output for 18 months at 2 African mines which produced 127,000 metric tons or about 17% of the company’s output in the 1st half of the year…Freeport-McMoRan (FCX, NYSE) became the 1st major miner to announce production cuts late last month in response to depressed Copper prices which have slipped nearly 20% since their 2015 high of $2.95 per pound in May…

China Update

There are fresh expectations that China’s central bank will inject more stimulus after another round of weak trade data…Chinese exports fell in August for the 2nd consecutive month as the economy continued its struggle to regain momentum…China’s exports fell 5.5% in August from a year earlier in dollar terms, after a drop of 8.3% in July, according to data from the General Administration of Customs…they said in a statement that China’s exports will continue to face “relatively big pressure” in Q4

Meanwhile, China reported yesterday that its foreign exchange reserves fell by a record $93.9 billion in August from July, the largest-ever decline in dollar terms, as the central bank intervened in an effort to prop up the yuan after the recent devaluation…

At $3.56 trillion as of the end of August, the currency reserves held by the PBOC still account for nearly one-third of all holdings by central banks world-wide…but the reserves have declined since a peak of nearly $4 trillion in June 2014 as more money is leaving the country…

The reversal raises some concerns in the U.S. government bond market because about 40% of China’s foreign-exchange reserves are held as Treasurys, according to estimates by analysts at Bank of America Merrill Lynch…as of June, China was the world’s largest investor in Treasurys, holding $1.27 trillion, according to the latest data from the Treasury Department…

Today’s Equity Markets

Asia

China’s Shanghai rallied strongly near the end of the today’s session (the “rescue team” must have stepped in) to close up 90 points or 3% at 3190…resistance at 3400 and strong support at 2650 as shown in John’s chart yesterday – that appears to be the range for now…

In a bid to bring some stability to China’s volatile stock markets and improve confidence in the government’s economic management, the communist government’s finance minister, Lou Jiwei, said in a statement over the weekend that economic growth would remain around 7% for the next 4 to 5 years and the stock market correction was nearly finished…we’ll see…numbers out of China have always been more than suspect…keep in mind that the country’s main data provider, the National Bureau of Statistics, is under control of the Communist Party and ruling State Council, which prize stability above all…if that means “massaging” certain numbers simply to protect against the potential of citizen “unrest”, so be it…

Europe

European markets were up strongly today…

North America

The Dow is 265 points higher as of 8:30 am Pacific…China’s late session rally gave Wall Street some encouragement…meanwhile, the National Federation of Independent Business said today that its Small Business Optimism Index rose modestly in August, up half a point to 95.9…the gain suggests the economy continued to grow at a steady clip halfway through the 3rd quarter…

Growth is set to slow across a number of the world’s largest economies, including the U.S., China and the U.K., according to leading indicators released today by the Organization for Economic Cooperation and Development (OECD)…we expect the Fed to “chicken out” on a rate hike at its upcoming meeting…

In Toronto, the TSX is up 153 points as of 8:30 am Pacific while the Venture has finally inched above its 20-day moving average (SMA) which has been resistance for more than 4 months…the Index is 4 points at 557

Venture Comparative Since August 24

Since the August 24 “flash crash” in the broader equity markets, the Venture has out-performed the Dow, the Nasdaq and the TSX, an encouraging sign as the Venture’s breakdown in early July was a leading indicator at that time of potential trouble ahead on the broader markets (indeed that developed in late July/early August)…the Venture has been buoyed in part by a recovery in Crude Oil which has jumped 20% over the last 10 trading sessions…

CDNX Comparative 10 Days

NexGen Energy Ltd. (NXE, TSX-V) Update

NexGen Energy (NXE, TSX-V) reported more stellar results this morning from the Arrow Zone discovery at its Rook 1 Project…AR-15-49c2 returned 50 m at 12% U3O8 (435.5 to 485.5 m) including 18 m at 20.55% U3O8 (456.0 to 474.0 m) and 4.5 m at 40.6 % U3O8 (465 to 469.5 m) in the A2 shear…this highlights intensive mineralization 41 m up-plunge and northeast from previously reported hole AR-1544b, one of the finest Uranium mineralized intersections ever drilled in the Athabasca basin, which returned 56.5 m @ 11.5% U3O8 between 499.5 m and 556 m…

The Arrow zone, which is entirely basement hosted, currently covers an area of 645 m by 215 m with a vertical extent of mineralization commencing from 100 to 920 m, and remains open in all directions and at depth…geochemical results continue to show highly anomalous Gold values and very low deleterious metals content throughout the Arrow zone…5 rigs continue to turn on the Arrow Zone as part of the 2015 summer drill program recently expanded to 30,000 m…the company has cash on hand of approximately $23 million

NXE is up 3 cents at 66 cents as of 8:30 am Pacific

Pure Energy Minerals (PE, TSX-V) Update

Pure Energy Minerals (PE, TSX-V) has more than tripled since we introduced this exciting Lithium play to our readers in July…this morning, PE has hit a new multi-year high of 80 cents as it now grapples with Fib. resistance in the mid-70′s…

Below is John’s updated chart…RSI(14) conditions are now solidly in overbought territory on this 2.5-year weekly chart, above 80%…while such conditions can continue for an extended period, the risk of a minor consolidation (as occurred at previous Fib. resistance) has increased given current RSI(14) levels plus the current Fib. resistance which PE is up against…

The 10 and 20-day SMA’s on the daily chart have been providing consistent support on pullbacks in PE, underscoring how “bargain hunters” have stepped in aggressively on any weakness given the fundamental strengths of this play…on John’s 2.5-year weekly chart, the MA(10) – the 50-day SMA – has been key technical support since late July…

PE is up 7 cents at 76 cents as of 8:30 am Pacific

PE Sept 8

Equitas Resources (EQT, TSX-V) Update

The fact that Equitas Resources (EQT, TSX-V) has held up so well during a financing (expected to close very soon) is a testament to the high level of interest in this “swing for the fences” exploration play near the rich Voisey’s Bay nickel mine in Labrador…the EQT technical team, led by Everett Makela (Vale’s former principal geologist who has an intimate understanding of Voisey’s Bay and the region), has done a superb job outlining prospective drill targets at the Garland Nickel Property…the camp is fully set up with drilling expected to commence shortly…

Technically, EQT clearly has momentum in its favor, despite this morning’s minor pullback, with a recent breakout above what John describes as the “perfect pennant”…RSI(14) on this 2-month daily chart has plenty of room to move higher, while sell pressure (CMF) from the financing has started to ease off…ADX indicator confirms a strongly bullish trend…

EQT is off a penny at 13.5 cents as of 8:30 am Pacific

EQT Sept 8

Eurocontrol Technics Group (EUO, TSX-V)

This non-resource company jumped out at John simply given its increasing technical strength…Eurocontrol Technics (EU, TSX-V) specializes in the acquisition, development and commercialization of innovative energy security, authentication, verification and certification technologies, and appears to be breaking out above chart resistance and an ascending triangle at 17.5 cents (this requires confirmation)…RSI(14) is also moving up strongly from a bullish “W”…

EUO is up 1.5 cents at 19 cents as of 8:30 am Pacific on total volume (all exchanges) of more than 3.7 million shares…as always, perform your own due diligence…

EUO Sept 8

Silver Short-Term Chart

Silver has been quite volatile recently, swinging between strong Fib. resistance just below $16 and solid support around $14…the band of Fib. resistance between $15.30 and $16.60 has proven to be very stubborn since early June, certainly due to the reality of a slowing global economy with Silver having a lot of industrial uses…

The divergence between Silver’s RSI(14) and price on this 9-month daily chart is encouraging, however…patience is the key here…at some point the bears will be pushed back…

Silver Sept 8 Short Term

Silver Long-Term Chart

An explosive push higher (eventually) – is this actually a scenario that could unfold in Silver over the next couple of years?…quite possibly, given the look of this 34-year monthly chart, though at the moment it’s hard to understand all the factors that could come into play to generate the kind of “Wave 5” move that could develop…

Have we seen the  bottom of “Wave 4”?…that’s quite possible, but still too early to tell…encouragingly, RSI(14) has so far managed to hold support which goes back to 2001…

Sell pressure continues to remain very strong, however, as shown by the CMF – amazingly, at levels not seen in nearly 25 years since the low of $3.51…this intense sell pressure at the moment, which started modestly in early 2013, could continue for a while yet…this should be viewed in a larger context as a bullish contrarian indicator given historical patterns…it doesn’t necessarily mean, however, that Silver has found a bottom just yet…

Silver Sept 8 Long Term

Note:  John and Jon both hold share positions in EQT.

55 Comments

  1. I mentioned $CRS on Friday @.08 as a possible bottom. Great news out today. Last @.10 on 1M Vol. I bot more at open @.09. Take a look.

    Comment by BigRig — September 8, 2015 @ 7:40 am

  2. EQT big bids are back at .14.

    Comment by BigRig — September 8, 2015 @ 7:59 am

  3. GGI last chance at .075?

    Comment by BigRig — September 8, 2015 @ 7:59 am

  4. In studying the chart on EQT just now at this moment. I have seen this chart pattern before. I anticipate a breakout tomorrow or Thursday at the latest.

    Comment by dave — September 8, 2015 @ 8:14 am

  5. The breakout will come after the approval of the PP, whenever that is.

    Comment by John - BMR — September 8, 2015 @ 8:47 am

  6. With both the CEO and IR guy on site,I expect a major push as soon as the PP closes.They have something to tell us.This is about to become very interesting.

    Comment by jim niles — September 8, 2015 @ 8:53 am

  7. Bids appear to be picking up again.The strength of this thing is amazing.Everything is getting bought up.All of this going on during a dead period PP that hasn’t closed yet.
    If anyone is sitting on the sidelines right now thinking EQT will stay here until drilling will be announced or even after,they had better buy now,because this is about to make a major move.

    Comment by jim niles — September 8, 2015 @ 8:57 am

  8. When you guys say breakout – are you talking .18-.20? or .40 – .50?
    Either way, I’m ready!!

    Comment by Paul — September 8, 2015 @ 9:20 am

  9. John, EQT will breakout tomorrow or Thursday.

    Comment by dave — September 8, 2015 @ 9:54 am

  10. They have done everything in their power to keep this down around the PP price,and are struggling mightily.$0.40-.50 might very well come into play quickly.
    If they have some interesting things to reveal after the PP,then we could see the start of a Murray Pezim pump job take shape.
    After that,if they start hitting sulphides and put that in the pump,look out!The constant volume is a major barometer of the eyes on this play.
    It won’t take much for a parabolic run to happen.XAU went from $2.80 to $8.00 in days this year.This has that same setup in the stock.
    This PP could have closed much faster,but it appears only insiders are allowed in,so what does that tell you about what may be going on at that property?
    Both CEO and IR are on the property and it hasn’t even drilled yet.Hang on to your hats!

    Comment by jim niles — September 8, 2015 @ 10:04 am

  11. From Twitter…

    Sean Adam Kingsley ‏@Canuckoholic 22h22 hours ago

    See you soon @GooseBayAirport #Labrador
    ———————————————
    Sean Adam Kingsley ‏@Canuckoholic 9h9 hours ago

    Great way to wake up in Labrador; a cup of screech & seeing a moon that back in Vancouver would make it dark outside

    Comment by jim niles — September 8, 2015 @ 10:28 am

  12. .155 up next.volume on the bids remaining high.do we see .16-.165 close?

    Comment by jim niles — September 8, 2015 @ 10:30 am

  13. EQT all aboard, train leaves the station tomorrow.

    Comment by dave — September 8, 2015 @ 10:35 am

  14. Just got on board 100,000 @ .15

    Comment by Bob — September 8, 2015 @ 11:02 am

  15. Wow EQT. Might be no stopping her now!

    Comment by BigRig — September 8, 2015 @ 11:08 am

  16. Jim Niles

    what you said above is exactly what I have been thinking they know they are on to something and are letting the insiders get all they can of this…. imo..

    Comment by Greg — September 8, 2015 @ 11:27 am

  17. The volume on EQT is incredible given the drills aren’t even turning yet. This one is gonna fly with even a hint of factual good news

    Comment by Jamie — September 8, 2015 @ 11:30 am

  18. Nothing for sale till a small .19 ask. EQT.

    Comment by BigRig — September 8, 2015 @ 11:32 am

  19. And tomorrow!

    Comment by dave — September 8, 2015 @ 11:49 am

  20. Great job guys. I am going to become a paying member for sure.

    Comment by George — September 8, 2015 @ 11:59 am

  21. Yes,thanks for the heads up on eqt,Dave and bmr, got in 2 weeks ago, now all we need is some noise from ggi, I hope it doesn’t take another 3 months to see some news..

    Comment by Tombc — September 8, 2015 @ 12:20 pm

  22. Keep an eye on Equitas Twitter page and Sean Adam Kingsley Twitter page.They will be doing some communicating with investors there in between PRs.

    Comment by jim niles — September 8, 2015 @ 12:30 pm

  23. Imo,we see .185 at some point tomorrow.I don’t know if it’ll stay there because we are now in overbought conditions,but I think we’ll see it.

    Comment by jim niles — September 8, 2015 @ 12:31 pm

  24. Hi guys I bought BMR Gold membership.

    Comment by ConcernedCitizen — September 8, 2015 @ 12:43 pm

  25. Jim Niles – I would not say it is overbought yet. The RSI just did make 70 today. A stock like this with this kind of momentum can run the RSI into the 90’s and it stay there a few days. Next Fib. target is .23, so we will see what happens.

    Comment by dave — September 8, 2015 @ 12:56 pm

  26. Well, I figured one last pick up this morning after no news regarding PP. My wife had plenty of room left in her TFSA so loaded another 50,000 shares of EQT at 14 cents. Loaded to the hilt now! Let her rip Kyler!!

    Comment by Dan — September 8, 2015 @ 1:52 pm

  27. Dave. My B/O point was my FIB level at 15. It needs confirmation tomorrow and on we go to the next FIB. level at 23. That is how I see it. The FIBS don’t lie!!!!!!!!

    Sorry Jon made me do it!!!

    John BMR

    Comment by arcus34 — September 8, 2015 @ 2:20 pm

  28. EQT .. interest here is at a fever pitch yet the pp hasn’t been closed (or not announced) and as far as I know drilling has yet to commence. Price action today was incredible. Been in this one since the 5c pp as of last Dec. The story here just keeps getting better. Cheers.

    Comment by treb — September 8, 2015 @ 2:34 pm

  29. EQT- nice move considering the PP isn’t closed. Now I wish I had bought more at .13 when its was being “manipulated”

    Great story and management team….the sector needs a success story to breath some life into it and bring in the badly needed speculative money!

    Now if the Shelsay stocks would come to life things could be very interesting for my portfolio just like the good old days when the sector was rocking and explorers moved on results and just speculation! Still waiting for those days to come back to put me into retirement!

    Comment by D4 — September 8, 2015 @ 3:06 pm

  30. DBV and GGI are losing strength… go back to 7 cents and 5.5 cents respectively….

    Comment by Theodore — September 8, 2015 @ 4:13 pm

  31. Oh, how nice that would be, Theodore!

    Comment by Jon - BMR — September 8, 2015 @ 4:27 pm

  32. I second that……the lower both GGI and DBV go the better! I don’t see how you can say they’re losing strength as there hasn’t been ANY strength in both in a long time.

    Comment by D4 — September 8, 2015 @ 4:55 pm

  33. Still waiting for news from DBV , if DBV can state some progress it will give everyone in the area a boost.

    Comment by Les — September 8, 2015 @ 5:22 pm

  34. I’m holding my DBV shares for over a year now. You guys cheering for the price to correct further, are you for real? GGI 0.30 to 0.05, DBV 0.40 to 0.08, PGX 0.60 to 0.06. Sheslay longs are punching bags.

    Comment by ConcernedCitizen — September 8, 2015 @ 5:37 pm

  35. Rumor has it, ConcernedCitizen, that something’s brewing, so us longs won’t be punching bags for much longer!

    Again, I’ll repeat the words of AME BC: “The Sheslay district is the #1 greenfield project in B.C.”

    Remember those words. Enough said.

    Comment by Jon - BMR — September 8, 2015 @ 6:06 pm

  36. Try to look on the bright side CC, if GGI makes a discovery at the Grizzly they might sport as lofty a market cap as DBV.

    Comment by Ivan Borzinsky — September 8, 2015 @ 6:21 pm

  37. Jon , do you still think we get news from DBV this week ? I’m just another punching bag waiting for the area to prove they have the goods.

    Comment by Les — September 8, 2015 @ 6:52 pm

  38. I want to share something with all of you in EQT. I received an email this past Sunday. It was in reference to the picture of the rocks that got posted on SH. Someone said that I posted the pic and was getting everybody excited over it. I was quick to correct this company person by way of email that it was not me and I only made one post afterwards in reference to that pic. I received an apology from that company person by way of email. I took this kinda personal and could not understand why someone would do this to me. I come home tonight after being gone all evening only to find some things mentioned on SH that I thought were to be left quiet for now. So others are letting the cat out of the bag sorta speak, but in my heart it did not come from me. If you read the posts from 5 pm on, you will see some things that are coming up. Dan, the thing that’s better than the XRF analyzer is in a post too. Its not a machine, and he is better than any xrf machine as they are not as reliable on nickel.

    I am very frustrated right now. Everyone have a good night.

    Comment by dave — September 8, 2015 @ 6:55 pm

  39. No, the company’s were the punching bags, think about it, sprott, then day, if it goes down more, heck I’m grabbing more, by the end of this month, all will be forgotten, the longs will come out on top!!

    Comment by Tombc — September 8, 2015 @ 6:59 pm

  40. If someone would have told me DBV would go from .08 to .40 and back to .08 , like wise for GGI I wouldn’t have believed them.

    Comment by Les — September 8, 2015 @ 7:01 pm

  41. asia markets on fire up 5%

    Comment by brian — September 8, 2015 @ 7:14 pm

  42. Dave

    sorry to hear about the accusations, don’t let it get you down…. not worth it, appreciate your input here in this forum and hope to hear more from you in the future..
    Thanks

    Comment by Greg — September 8, 2015 @ 8:11 pm

  43. Good article and chart on EQT John and Jon. I like the fib. level after .23 is .36.

    I have said the 30’s are possible end of Sept./ beginning of Oct.

    PE is of coarse doing well, I took some off the table today at .77. – But it has been years since I have seen one trade like EQT while under a PP and no news coming out. EQT has not had the .05 gains in a day yet, but its coming. One has to realize that any other stock on the Venture would not be where EQT is today with the same going on with a PP at .10. It is defying all odds here and the market.

    Comment by dave — September 8, 2015 @ 8:20 pm

  44. i was the person that told jon about pure energy in july ..my pick is rpx a gold deal that there is big news on stock all the money is raised and at 6 cents it is a better buy than pure energy jon do not miss this a billionare owns this property already has 1.1 million oz.s proven out now they are going after 5 million oz.s in the ore body ..open pit///my opinion only but i was the one that told everyone about pe. i also am a huge shareholder of dbv.doubleview with farshad it is the next pick i have

    Comment by tony roma — September 8, 2015 @ 8:42 pm

  45. Anyone notice the insider buying at .15-.155 4 sessions in a row on MZI.V. Can you say something’s brewing. I’m thinking we could easily see .25-30 in the near future.

    Comment by BigRig — September 8, 2015 @ 10:36 pm

  46. good morning bmr boys I bring you the latest press release from heron resources(her texch) sept 8 2015 “HERON RESOURCES ANNOUNCES WOODLAWN FEASIBILITY STUDY ON TRACK” regards walter emond

    Comment by walter emond — September 9, 2015 @ 12:11 am

  47. Dave. No matter what if the company post pics of a possible outcrop on their website stating Garland who wouldn’t think it is a pic from their property.

    Comment by Dan1 — September 9, 2015 @ 4:04 am

  48. WRR, Lapon Canyon, Approximately 20,000 feet of planned drilling has been outlined with an initial six drill holes (3,000 feet) spotted with drill pads completed. Drilling is planned to begin on or about Sept. 20, 2015.

    Comment by Guy Delisle — September 9, 2015 @ 6:22 am

  49. Dave,did the IR person say what that photo was,exactly?Was it an old one from Voisey Bay,itself?Was it from South Voisey Bay?From one of the nearby properties?Just a photo from Nevada,or Utah,or New Mexico?Just a photo from off the net on mineralized outcrops from BC?
    They put the same photo on two different twitter pages.I’m wondering why Zimtu would bother,or even EQT for that matter.Unless they say where they got that photo on the net,point us to where it is so everyone can see for themselves where they got it,it has to be assumed it was theirs.
    I haven’t seen where they put out a tweet,or came on here,or Stockhouse Bullboards and said,”Boys,this is where we got this general picture on the net,and this proves it’s not ours,just a general picture.’
    Not hard to do,and diffuses that quickly.
    But,they haven’t done that,that I can see.Jmo.

    Comment by jim niles — September 9, 2015 @ 7:02 am

  50. Jim, IR never expressed to me where the photo came from. I am not sure where it came from. I really don’t think it matters as I feel they have a great shot at a discovery here.

    Comment by dave — September 9, 2015 @ 7:15 am

  51. Is it possible someone got excited and ahead of themselves and they got reamed out because of it?Just wondering.

    Comment by jim niles — September 9, 2015 @ 7:26 am

  52. Jim – I am wondering the same thing and that is very possible.

    Comment by dave — September 9, 2015 @ 7:37 am

  53. Dave.. Re:EQT Do you hear anything re PP, any concerns, with the selling price now .17?

    Comment by Bob — September 9, 2015 @ 7:37 am

  54. Dave,jmo,but I think it does matter if they’re going to criticize someone for it.If it’s not theirs,they just have to say where on the net they got it from,and that will stop all speculation.Otherwise it has to be considered theirs.
    I know that if I was in charge of an IR program in any business and millions of shares and dollars are at stake,and I see the excitement my business is generating,I certainly wouldn’t put up photos with captions on social media that could be mistinterpreted and have an effect on the share price…unless it was mine.I would know better.
    It’s obvious that this IR person is following this board and Stockhouse bullboard,as would be expected.So answer uds this question…’Where did this photo come from?’Show us where it was copied from the net and it won’t be discussed again.
    Saying all this,the IR for EQT is doing a great job so far.Everyone appreciates the communication.

    Comment by jim niles — September 9, 2015 @ 7:40 am

  55. BOB – no concerns at all. PP is day to day or hour by hour even. That announcement can come at any time. Then the drilling news and she is off to the races.

    Jim, I agree with you. Nonetheless, as I have said, it does not matter where that photo came from because of the anomolies on the property. I would not doubt that something like this probably exists. The drill will tell the story and I can’t wait.

    Comment by dave — September 9, 2015 @ 7:57 am

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