Gold is shooting higher this morning…after dropping as low as $1,647, it suddenly reversed and as of 8:30 am Pacific the yellow metal is up $34 an ounce at $1,687…Silver is 51 cents higher at $32.25…Copper is off 6 cents at $3.40…Crude Oil hit a three-month high this morning…it’s currently up $2.17 a barrel to $93.44 while the U.S. Dollar Index is up one-fifth of a point at 76.31…
Gold started to surge after news that a meeting of 27 EU finance ministers scheduled for tomorrow has been cancelled, though the EU summit at this point is still going ahead as planned…meanwhile, the Financial Times is reporting that the Italian government is on the brink of collapse…the situation doesn’t look good in the euro zone and it appears unlikely that tomorrow’s summit in Brussels will meet or exceed the market’s expectations…Gold looks ready to bust through resistance around $1,685…
U.S. consumer confidence unexpectedly dropped in October to its lowest level in two-and-a-half years as consumers fretted about job and income prospects, according to a private sector report released this morning…the Conference Board, an industry group, said its index of consumer attitudes fell to 39.8 from a upwardly revised 46.4 the month before…it was the lowest level since March 2009…economists had expected the index to rise to 46.0, according to a Reuters poll…the present situation index slipped to 26.3 from 33.3, while the expectations index declined to 48.7 from 55.1…the expectations gauge was also at its lowest since March 2009…”Consumer expectations, which had improved in September, gave back all of the gain and then some, as concerns about business conditions, the labor market and income prospects increased,” Lynn Franco, director of the Conference Board Consumer Research Center, said in a statement…
The Bank of Canada held its benchmark interest rate at 1% today while also chopping its domestic growth forecast for 2011 and 2012 amid a host of threats including a “brief” recession in the euro zone…Governor Carney’s statement included the following comments…
“The combination of ongoing delveraging by banks and households, increased fiscal austerity and declining business and consumer confidence is expected to restrain growth across the advanced economies”…
“The Bank of Canada now expects that the euro area – where these dynamics are most acute – will experience a brief recession”…
“The Bank’s base-case scenario assumes that the euro-area crisis will be contained, although this assumption is clearly subject to downside risks”…
“In the United States, diminished household confidence, tighter financial conditions and increased fiscal drag are expected to result in weak real GDP growth through the first half of 2012, before growth strengthens gradually thereafter”…
“Growth in China and other emerging-market economies is projected to moderate to a more sustainable pace in response to weaker external demand and the lagged effects of past policy tightening”…
The action in Copper will be important to watch in the coming days and weeks…as John’s chart shows, a key resistance level is $3.50…as mentioned earlier, Copper is currently off slightly at $3.40…
Canaco Resources (CAN, TSX-V) has really taken a beating since hitting an all-time high of $6.45 in February of this year…it topped out just prior to the CDNX topping out in early March at 2465…the company has been delivering consistently good drill results from its Handeni Project in Tanzania which is developing into a world class resource…however, in the current market environment, Canaco continues to struggle…as of 8:30 am Pacific, it’s off 3 pennies at $1.67…John examines the Canaco chart below to put the downtrend in perspective…
The CDNX has gained 6 points to 1566…this is not a market we’re going to chase given that we believe the primary direction is down…there is also a very strong band of resistance between 1600 and 1700…rallies of 20% or 30% can easily occur during a bear market and that’s what is happening now with the CDNX after an October intra-day low of 1306…
Hi!
Do you have any contact with VGD management at the moment? Shouldn´t they already have been releasing some new grades?
best regards
Comment by Tobe — October 25, 2011 @ 7:46 am
It’s a waiting game with VGD like with every other company that has assay results pending, and no one can give precise timing…my hunch is we should see something soon, but perhaps not until sometime in November…who knows……
Comment by Jon - BMR — October 25, 2011 @ 7:53 am
I know you guys are convinced that the CDNX has now entered bear territory and all the indicators are poor but I’m not that sure. Precious metals should power higher as the currency debasement kicks on to a new level and this will eventually filter down to the juniors. Another factor is takeover season which is only getting started. I know this year has been a total stinker but I think we are either fairly close or at the bottom of this poor run. Thanks to whoever gave the thumbs up to MTO as it definitely looks a strong buy at this price and will be taken over within 12 months. Not giving up just yet.
Comment by Patrick — October 25, 2011 @ 8:56 am
I hope everyone took advantage of getting in CEV when i mentioned it 2 weeks ago at .355. Stay tuned for my next one.
Comment by dave — October 25, 2011 @ 9:16 am
Really poor nr from CUI
Comment by Andrew — October 25, 2011 @ 9:31 am
The result from CUI is very disappointing. A great burden for Sekenke.
Comment by Michael — October 25, 2011 @ 9:46 am
Very disappointing results, especially considering the early indications. CUI may have to forget about Mabale Hills, Sekenke is the only hope. Bear markets deliver disappointments.
Comment by Jon - BMR — October 25, 2011 @ 10:57 am
On numberous occassions, Jon, you had mentioned CUI as a top pick close to 20 cents. At least put a plug in for it at these levels of 7 cents as a buying opportunity?!
Comment by STEVEN — October 25, 2011 @ 11:05 am
At least they have the courage to print the news,
Comment by Martin — October 25, 2011 @ 11:40 am
With those kind of market, better to trade hbu, hzu, and others!
Comment by Martin — October 25, 2011 @ 11:43 am
and they’re “pleased to provide an update” 🙂
Comment by Andrew — October 25, 2011 @ 11:43 am
I think you’re right on, Martin
Comment by Andrew — October 25, 2011 @ 11:44 am
Maybe BMR could focus on some ETFs on a regular basis, with charts as for the model portfolio until things get better? It was good to read the comments on HIX and HXD the other day.
Comment by Andrew — October 25, 2011 @ 11:46 am
Jon you mentioned bear markets deliver disappointments…Wasn’t sure what that meant exactly – care to elaborate?
Also, do you think 7 cents is worth paying for what Sekenke could deliver given the land package? You’ve always maintained that Sekenke is why you guys followed CUI, not Mabale Hills. Is it an opportunity to avg. down for those who bought in at the high teens or would you say stay clear until Sekenke results?
Curious to get your opinion.
Comment by Alex — October 25, 2011 @ 11:50 am
Sold 60000S of VGD at 31 cent on sept 28 Andrew, Tried to call Martin many time in Val d’or as he would not anwser the phone. Market are not friendly environment for junior miner now! Still in?
Comment by Martin — October 25, 2011 @ 12:12 pm
these days, i was looking at CUI, to get in at 0.10$, would have lost 30%!
Comment by Martin — October 25, 2011 @ 12:15 pm
Sorry Junior explorer,
Comment by Martin — October 25, 2011 @ 12:21 pm
would not be afraid to buy cui at these level Alex it will go up one day:-)this cie have been there for some 30 years?(not sure, at least 20)
Good luck!
Comment by Martin — October 25, 2011 @ 12:32 pm
I’m still holding VGD and AGE, Martin but wish I had got out in September (John’s AGE chart at the end of September was bullish and then it all changed :)). I kept thinking VGD drill assays will be out any day now and then I can make a well informed decision. Not encouraging to hear that Martin Dallaire did not return your calls! I goofed on CUI too, thinking that the preliminary visuals and extra drilling would give a good news release! I sold at .08 today and I can see CUI going below .06 so I think I’ll wait for Sekenke update before jumping aboard again. GDX may be a better buy than CUI? Perhaps a dead cat bounce on CUI tomorrow but think I’ll leave it alone?
I’ll see what the Euro summit brings and then most likely try to work away at recouping losses with ETFs. Bonne chance!
Comment by Andrew — October 25, 2011 @ 1:10 pm
ok toi aussi! moi aussi j’étais pas content qu’il ne répondent pas(pas juste une fois je l’ai caller = 20 fois, 3 jours, au moins, puis il était au bureau ;-))
But still, I like VGD alot!
Comment by Martin — October 25, 2011 @ 1:48 pm
Very disappointing for you, Martin. Especially after the recent interviews and videos – I thought Martin Dallaire was more professional but it seems to be a common problem. Maybe we have to call Switzwerland 🙂 A bientot
Comment by Andrew — October 25, 2011 @ 4:05 pm
No news is bad news most of the time. I suspect VGD is holding the result until the better drill hole(s) can be reported. The last drill result, they held back 6 dry holes (3 near Ventex) and reported those along with a better one.
As for CUI, I’d gamble when it’s 4 cents. They are dead meat unless they find a significant discovery at Sekenke.
Comment by Bruce — October 25, 2011 @ 4:55 pm
call Switzwerland LOL!
Comment by Martin — October 25, 2011 @ 7:02 pm
Even in a bear market or bad times, there are always stocks that move. BMR just doesn’t follow any of them at the moment. Follow the money and you will make money.
Comment by dave — October 25, 2011 @ 8:31 pm
Hi Jon; could you make a update about CUI? It would be helpful to understand the new situation. thx
Comment by Michael — October 25, 2011 @ 10:59 pm
Adventure Gold Discovers High-Grade Gold-Copper-Silver Mineralization on Its Pascalis-Colombiere Property
Comment by Andrew — October 26, 2011 @ 4:49 am