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August 12, 2010

BMR Morning Market Musings…

Gold held up extremely well in the face of a stronger U.S. Dollar yesterday, and today Gold has shot up convincingly through $1,200 with a $16 move to the upside…as of 8:00  am Pacific, Gold is trading at $1,214…technical momentum is clearly in favor of the bulls at the moment with the next target being the July high of $1,222…the CDNX is up 8 points to 1449…despite yesterday’s 23-point sell-off, the primary trend with the CDNX continues to be up…we’ve mentioned several times at BMR the striking similarities between the 2004 market and the current one…the market bottomed in July, 2004, and found support at its rising 20-day SMA from August through most of October…the CDNX’s current 20-day SMA is 1415…at BMR, we believe one of the best ways to make money is follow those who have it…we interviewed British investment guru, entrepreneur, author and multi-millionaire Jim Slater yesterday from his office in London, England…Slater is involved with the Junior Mining Fund in the UK which, he revealed to us, has invested in Gold Bullion Development (GBB, TSX-V) on 3 separate occasions over the past 6 months and will continue to add to its position…”It’s low grade but it’s growing very fast – massive tonnage,” stated Slater…”I’ve met the management team and I’m impressed with them…I would like to see them in due course move from exploration to development because that’s where the money is…another great feature of it is that it’s in Quebec”…we have divided our interview with Slater into 2 parts…the first segment will be posted this morning at 10 o’clock Pacific time with Slater speaking in general terms about investing, the macro economic picture and Gold…the second half of the interview will be uploaded tomorrow…Slater is also bullish on Spanish Mountain Gold (SPA, TSX-V) which he speaks about in Part 2 tomorrow along with Gold BullionGBB is unchanged this morning at 53 cents…Sidon International (SD, TSX-V) is up a penny to 14.5 cents…Sidon has cleansed its recently overbought technical condition and has strong support at its 20-day SMA of 14 cents…this stock has tripled in value since we first introduced it to BMR readers in late March…Richfield Ventures (RVC, TSX-V) pulled back as predicted and is sitting at $1.52 this morning, just above its 20 and 100-day moving averages where it should find strong support…

1 Comment

  1. Have a feeling we could have those long awaited results from the long bar zone 1 soon. Frank likes Thursday night releases and who knows this might just be another one. He also likes to release when things are quiet and they couldn’t be much quieter than now. Bring it on and lets see this go to the next level. Their next financing will be above 1 dollar and hopefully these next results will get them there.
    Hold tight and good luck.
    Patrick

    Comment by patrick — August 12, 2010 @ 8:05 am

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