BullMarketRun.ca

Gold is trying to bounce off a three-week low this morning after yesterday’s drop…as of 8:50 am Pacific, the yellow metal is up $1 an ounce at $1,516…Silver is 13 cents higher at $34.89…crude oil has climbed 70 cents to $98.00 while the U.S. Dollar Index is off more than one-tenth of a point to 74.34…a slew of economic data came out this morning from the United States and China which has given investors some encouragement…U.S. retail sales fell less than expected and producer prices weren’t as high as expected…meanwhile, China’s industrial output for May jumped 13.3% from a year earlier, slightly topping forecasts…while there are some signs of slowing, China’s economy remains strong and its central bank raised bank reserve ratios today for the ninth time since last October after data showed inflation rising in May to 5.5%, its highest level in almost three years…the central bank increased the ratio for China’s biggest banks to 21.5%, a record high, locking up funds that could otherwise be loaned out and add to inflationary pressures…Chinese leaders have made bringing inflation under control their top priority this year, fearful that rising prices could not only unsettle the world’s second-biggest economy but spark social unrest of the sort seen this week in southern China…data shows that economic growth is China is slowing down but not too quickly, providing relief for financial markets that China will avoid a hard landing and leaving room for Beijing to focus on fighting inflation…non-food consumer prices climbed 2.9% from a year earlier, the fastest pace since records began in 2002, showing inflationary pressures are spreading more broadly in the economy…markets, which have become quite oversold, are up across the board today…the CDNX is 25 points higher at 1941…a “hinge” has formed on the Slow Stochastics for the CDNX, as John pointed out in a chart last night, and this is similar to what was seen prior to turnarounds in late January, late February, mid-March and mid-May…there are many beaten-down situations that offer strong value that should move higher just based on technical factors…Gold Canyon Resources (GCU, TSX-V) has become heavily oversold based on RSI and Stochastics indicators…it’s up 12 cents at $2.54 this morning…it nearly touched its rising 200-day moving average (SMA) the other day which currently sits at $2.25…from a trader’s perspective, GCU could easily rally back to its 100-day SMA near $3.00 where it would encounter resistance…Gold Canyon has a potential multi-million ounce deposit on its hands at its Springpole Project, 110 kilometres northeast of the Red Lake Mining Camp…drilling continues and an updated 43-101 resource estimate is expected by year-end…Richmont Mines (RIC, TSX-V) declined for 10 out of 11 sessions prior to today, falling to a low of $6.40 yesterday which is just below the rising 100-day SMA…Richmont is one of our favorite small producers (80,000 ounces this year) and is becoming an earnings machine…the company has approximately $50 million in cash, no debt, and made 28 cents per share in Q1…production is expected to increase by at least 25% next year and the company continues to work feverishly on its Wasamac Project near Rouyn-Noranda which should add another 100,000 ounces of yearly production down the road…it’s a well-run operation with great prospects…RIC is up 9 cents at $6.60…Adventure Gold (AGE, TSX-V) is delivering excellent results from its Pascalis-Colombiere Gold Property near Val d’Or with long intersections of mineable grade which shows open-pit potential…the property hosts the former underground L.C. Beliveau Mine…AGE’s supporting 200-day SMA is at 48 cents…the stock is up a penny this morning at 52 cents…Spanish Mountain Gold (SPA, TSX-V) has pulled back from the low 70’s to the mid-to-upper 60’s, just above its rising 50-day SMA…SPA is one-third of the way through a drill program that will upgrade resources from the inferred category to measured and indicated at its Spanish Mountain Gold Property in central British Columbia…potential extensions are also being tested laterally and at depth…this is a multi-million ounce low grade deposit with an excellent chance of developing into a producing mine…with a market cap of $88 million, SPA has considerable upside potential given the resource it’s developing…SPA is up a penny at 67 cents…weak markets have driven Batero Gold (BAT, TSX-V) below $3.00 a share, less than half where it was in early March…the company continues to get solid results from its Batero-Quinchia Project in Colombia…a Phase 2, 24,000 metre drill program is in progress at the highly prospective La Cumbre Gold-copper porphyry…BAT is currently unchanged at $2.80, 13 cents below its rising 200-day SMA and about 50 cents above its rising 300-day SMA, so the downside appears to be limited…