Gold continues to encounter resistance at the $1,800 level but found support just above $1,775 this morning…as of 8:15 am Pacific, the yellow metal is up $7 an ounce at $1,792…Silver has dropped 20 cents to $34.70…Copper is off 11 cents at $3.44…Crude Oil is $1.50 lower at $95.30 while the U.S. Dollar Index is up over a point to 77.68 on more euro zone problems and fears…Italian 10-year bond yields today rose above the 7% level that is widely deemed unsustainable after an increase in the cost of using the country’s bonds to raise funds offset hopes for more reforms in Italy as its prime minister agreed to step down…the news from Italy overshadowed some positive news out of China overnight as that country’s October inflation cooled to 5.5% in October, the third straight monthly decline from July’s three-year peak…Premier Wen Jiabao said prices have fallen further since then…the Chinese could be in a position to focus more on trying to accelerate growth than fighting inflation in the months ahead…
The CDNX is down 24 points to 1646 and nearly touched its 10-day moving average (SMA) this morning when it dipped as low as 1639…the 10-day has provided important support during the rally of the last few weeks, so it’ll be interesting to see if that holds this week…below the 10-day there is strong support around 1575…this remains a market to be very careful with, however, given technical concerns regarding the bigger picture and lackluster volume…we’ve had some inquiries regarding Gold Bullion Development (GBB, TSX-V) which jumped a nickel-and-a-half yesterday to 25.5 cents on volume of nearly 2 million shares…news came out from GBB this morning with the company deciding to replace GENIVAR as its geological consultant with SGS Canada…we view this as a positive move since GENIVAR simply didn’t deliver on the ground for GBB and the stock was being punished for those inefficiencies…Gold Bullion says SGS will provide a NI-43-101 resource estimate for Granada during the first quarter of next year followed by a Preliminary Economic Assessment (PEA)…GBB is currently off 4 cents to 21 cents…we remain very bullish on the prospects for the LONG Bars Zone and hopefully SGS will bring some positive new dynamics into the equation…from a technical perspective as far as the stock is concerned, GBB faces stiff resistance at the moment in the mid-to-upper 20’s, so patience will continue to be name of the game with this play – especially with the 43-101 not coming out now for at least a few more months…John updates the chart below…
The CDNX volume leader so far today is CB Gold (CBJ, TSX-V) which is off 25 cents to $1.46 after having to clarify and re-state some drill results from recently reported hole RM-DDH11-046…while CBJ’s Vetas Gold Project in Colombia looks promising, it’s good that companies are being watched carefully in terms of how they report results…
News from GQC this morning. Drilling to commence next week. Renaud Hinse has done a little insider buying with ABI recently. I’m guessing dewatering is almost complete?
Comment by Andrew — November 9, 2011 @ 8:40 am
andrew – cjc – yes the bids built back up. The volume has picked up and the activity on the boards have picked up. I consider level 2 to be more for day traders and thats what TD mostly is in my opinion. They sold this morning at .39 and now have a good size bid at .35, they penny flip. If you go by the chart, she can stay in this range rest of week and move up next week again. She will climb the stairs as they say till assays. Very very doubtful you will see sell on the news.
Comment by dave — November 9, 2011 @ 9:34 am
In CJC at .365 🙂 I’ll watch it and take it from there.
Comment by Andrew — November 9, 2011 @ 9:41 am
thats a good price. You won’t see 30 again. Nov. 15 to Nov. 30 target time.
Comment by dave — November 9, 2011 @ 10:03 am
Dave, do you have any idea of a time frame for CEV’s pending assays from Northwest Zone and Greenbush Zone? I’m looking for an entry point – .60 would be nice but with assays pending perhaps that will not happen?
Comment by Andrew — November 9, 2011 @ 11:00 am
For Jon at BMR. Now I am not saying this is the case but… Genivar is a huge company with a good reputation and we must be very careful in the accusations. Now Jon could it be that Nicole Rioux did not want to put her signature at the bottom of the report to give GBB management there 2,5 millions ounces. Are you sure Genivar is the only one to blame ?
Comment by Andre — November 9, 2011 @ 11:31 am
So Andre, are you insinuating that because Frank Basa was unable to compromise Nicole Rioux and Genivar’s professional integrity they were sacked?
Then Frank Basa replaced Genivar with a new consultant – SGS Canada who would be more “pliable” to Franks wishes?
Because if you are, they are some serious allegations.
Comment by Rosco — November 9, 2011 @ 4:57 pm
LOL, why do we keep entertaining this guy? Andre, just go away!
Comment by alec — November 9, 2011 @ 6:13 pm
Can’t we pretend that we are canada and he is quebec and vote for him to leave.
Comment by mike — November 9, 2011 @ 7:10 pm
Hey Mike … My comments on Italy yesterday… i wasn’t wrong …again. In fact tell me Mike … When was I .Don t you think my batting average is pretty good. What about yours. Do feel useful for us with your postings. Have you made us any money. Don’t waiste our time here and why don’t you vote your self off from here. Everyweek your are here but always have nothing to say.
Comment by Andre — November 9, 2011 @ 7:35 pm
And Rosco … Don t make up something that I did not said.Compromise…. i was just saying there could have been a disagreement between Nicole and Frank on there conclusion of the RE.
Comment by Andre — November 9, 2011 @ 7:44 pm
And mike ..with your last comment your just a racist idiot.
Comment by Andre — November 9, 2011 @ 8:02 pm
andrew- I always use TA on the retracements and the Fib 60% rule. Its first support level is .65, but a 60% retracement would be around the .55 level. Of coarse if you get it under a buck (don’t laugh) you are getting a steal on it. But why pay more if you can get in cheaper. It’s correction has started if you follow patterns and charting, they can correct for 3 to 5 days before consolidating and moving up again. I believe there will be a news release prior to the next round of assays but they will hold off for the correction.
Comment by dave — November 9, 2011 @ 8:36 pm
I might add that cev and cjc are longer term stocks (I won’t use the word hold), play the charts ups and downs. You won’t find a lot of east -west on cev nor cjc shortly. I will however alert you in 2012 when its time to lock it down with cev, get in and don’t sell.
Comment by dave — November 9, 2011 @ 8:43 pm
ouch! this really is turning like just another stock house with all the personal attacks….. this site….is soon to be on my ignore list and I’ll replace it with another where people are more civilized! then again….money makes people go crazy!! people, do your own DD and stop relying on other people’s FREE advice!! if you do not know what you’re investing in…learn it or get the f*** out of investing in something you do not understand!!
me….I use BMR and other sites for a heads up on stock I may have missed, I do my own DD and invest according to my own decisions!!! If you can’t, put your money in a bank GIC!
Comment by M. — November 9, 2011 @ 9:25 pm
Not supporting the francophone position in Canada is not racist. Are the french who want to leave canada racist? I thought they were expressing an opinion. But feel free to think that everyone hates you because you are french, it is probably easier on your ego that way. I’m sure there are lots of federal programs that a guy like you could take advantage of.
Comment by mike — November 9, 2011 @ 9:27 pm
Looks as if we may have a good day. Everything up except gold, but we have time for
changes yet. A great market to profit in, buy lower on bad days, like yesterday & sell
on the next up day. $150.00/$200.00 profit still jingles in my pocket. Andre, my opinion
for what it’s worth, i would consider Mike’s comment, as a light hearted joke & nothing
more. We are 10 provinces, one for all & all for one. R !
Comment by Bert — November 10, 2011 @ 4:15 am
I agree with Mike Canada would be better off financially if Quebec left the union. Too much money is spent on trying to pacify the Quebecois, they are a province of takers, I say we call their bluff next time and we being the rest of Canada have a vote to see if we want to keep them
Comment by Dan — November 10, 2011 @ 4:53 am
Hmmm. So now we wait another 5 months on drill results?
You may view that as a positive sign but it scares me.
I am still invested in GBB and will try to hold on, but my stop-loss is getting closer..
We will see.
Comment by Digga — November 10, 2011 @ 5:29 am
AGE halted.
Comment by Andrew — November 10, 2011 @ 6:50 am
Reading ‘between the lines’, LSG will be disappointed with the deep hole results and suspend further drilling?
Comment by Andrew — November 10, 2011 @ 7:29 am