BullMarketRun.ca

Gold is taking a hit today and commodities in general are weak across the board after economic data came out of China this morning…that country’s GDP rose a sharp 9.8% in the fourth quarter on a year-over-year basis, fueling speculation that China will once again tighten its monetary policy…we’ve seen this show before and we encourage readers not to get caught up in these day-to-day events that day traders zero in on…we’re staying focused on the big picture which remains solidly positive for precious metals and commodities in general…as John outlined in his Gold chart last weekend, the possibility of Gold falling as low as $1,300 in a “wash out” move certainly exists (would not alter the bullish trend) and any such event would have to be viewed as one of those classic opportunities that have occasionally occurred in Gold throughout this bull market…as of 8:30 am Pacific, the yellow metal is off $22 an ounce at $1,349…Silver has dropped below strong support at $28 (it’ll be interesting to see if it moves back up above $28 by day’s end) and is currently off $1.16 at $27.59…a mini-correction appears to have set in with the CDNX which has failed on three occasions since early this month to move past the low 2300’s…the first major area of support on the CDNX is 2200…below that, the 50-day moving average (2150) provides very strong secondary support…and then another major support level is a trend channel between 2100 and about 2135…as of 8:30 am Pacific, the CDNX has shed 62 points and is currently sitting at 2223…this reminds us a lot of last November’s mini-correction which ended very abruptly…it’s important to stress that the overall trend with the CDNX remains exceptionally bullish and this brief period of weakness – just like every other pullback we’ve seen since this bull market started in late 2008 – presents some tremendous opportunities…Gold Bullion Development (GBB, TSX-V) is off 4 cents at 70 cents…GBB is strongly supported by its rising 100-day moving average (SMA) at 67 cents which has underpinned this stock going back to 2009…Granada has consistently delivered solid results since last spring and there’s no reason why that won’t continue as the LONG Bars Zone is such a tremendous geological target…our gut feeling is that we may see an update on Granada from GBB prior to the start of the Vancouver Resource Show Sunday, so that means by tomorrow sometime…look for potential news from other companies as well…GoldQuest Mining (GQC, TSX) has announced this morning that Bill Fisher has been named Executive Chairman of the Board…as stated in GQC’s news release, “His experience in the discovery, financing and development of mineral properties is outstanding, coupled with his long-established relationships in both the Dominican Republic and Spain. Most importantly, Bill has an extraordinary record of building shareholder value”…GoldQuest is conducting a major drill program in the DR where it has a fabulous pipeline of advanced and early staged exploration projects…GQC is off 2.5 cents at 34.5 cents…keep an eye as well on Everton Resources (EVR, TSX-V) which will be the first of the two companies to report drill results from the DR… Everton is currently up half a penny at 32.5 cents…Abcourt Mines (ABI, TSX-V) is down 3 cents at 19 cents…any further weakness in ABI has to be considered a gift given the fundamentals underlying this situation as we have already pointed out…there is a huge amount of technical support on ABI between 15.5 and 17.5 cents…times like these take nerves of steel and separate the successful investors from unsuccessful ones who panic and throw good stocks overboard when they see many others selling…our advice is to remain unemotional and search for quality situations, like the ones we focus on at BMR, that are being knocked down with the rest of the market and present low-risk entry points based on simple technical and fundamental analysis…the companies mentioned above – GBB, ABI, GQC and EVR – are just four such examples…others obviously include Seafield Resources (SFF, TSX-V), Cadillac Mining (CQX, TSX-V), Adventure Gold (AGE, TSX-V), Richfield Ventures (RVC, TSX-V), Sidon International (SD, TSX-V), Greencastle Resources (VGN, TSX-V), Colombian Mines (CMJ, TSX) and Excel Gold Mining (EGM, TSX-V)…we’re looking at other potential opportunities as well…it’s a great time to go fishing – you never know what you may catch…