BullMarketRun.ca

Gold, which has enjoyed its longest stretch of daily gains since the start of the year, eased slightly from two-week highs earlier this morning but has regained strength…as of 6:00 am Pacific, the yellow metal is now up $4 an ounce at $1,668….Silver is 18 cents higher at $31.19…Copper is up a penny at $3.87…Crude Oil is flat at $104.80 while the U.S. Dollar Index is off slightly at 78.69…

As John’s chart pointed out yesterday, Gold is up against technical resistance in the $1,670-1,675 area….signs of renewed strong physical demand would certainly help but not all statistics are helping in that regard…the U.S. Mint sold 20,000 ounces of American Eagle Gold coins in April, the least since June 2008, data on its web site show…as well, India last week celebrated the Akshaya Tritiya festival, considered an auspicious day to buy precious metals, and there was “disappointing demand” according to UBS AG…

UK Weakens, China Strengthens

The divergence between a weak European economy and strengthening Asian activity was bolstered today by manufacturing surveys from the UK and China…the UK managers’ purchasing index (PMI) showed activity fell in April to 50.5 from 51.9 in March on the back of a sharp drop in reported export orders, leaving Britain’s manufacturing sector almost as weak as its counterparts in the rest of the euro zone…by contrast, official Chinese PMI rose to 53.3 last month, its highest in more than a year, from 53.1 in March…it was also China’s fifth consecutive month above the 50 level…

More Easing In Australia

Australian shares popped up higher after the Reserve Bank of Australia cut rates more than expected, sending the stock market to a fresh nine-month high on hopes of a lift in consumer sentiment…the central bank had been expected to cut rates by 25 basis points, but instead cut by 50 basis points to 3.75%, saying the bigger cut was needed partly because the major banks had failed to pass on earlier rate cuts in full…

Berlin Insists On Euro Zone Austerity

The euro zone must stick to its austerity-led recovery plan, Germany’s finance minister insisted yesterday, signaling Berlin’s limited appetite for the more growth-oriented policies put forward by some other European leaders…Wolfgang Schäuble said the only way to achieve the economic growth that was needed in the region was to continue to rein in budget deficits and pay down debt, praising the touch new Spanish budget – which contains 27 billion euros in new taxes and spending cuts – as an example…

Today’s Markets

Asian markets including China, Hong Kong, South Korea, India and Singapore are closed today for public holidays while most western European markets, including Germany, France and Spain, are closed for the May Day holiday today…stock index futures in New York are pointing toward a slightly positive open on Wall Street…

The Venture Exchange enjoyed another strong day yesterday, posting its fourth consecutive daily advance as it erased slight early losses to finish up 11 points at 1424…that’s just a couple of points below the 20-day moving average (SMA)…the 10-day SMA is about to reverse to the upside which suggests this upward trend will continue…

John has a chart update on a favorite this morning in addition to a technical look at a couple of other situations…

Focus Metals (FMS, TSX-V)

We continue to be very bullish on the prospects for Focus Metals (FMS, TSX-V) and its Lac Knife graphite deposit in Quebec …premium large-flake graphite is the size most in demand for use in technology applications and the least available in current markets, and Focus Metals is on track to help fill some of that demand…technically, the stock is battling a downtrend line as shown in John’s chart below but an anticipated improvement in the Venture market this month should be very helpful for FMS…

Note: John, Jon and Terry do not hold positions in FMS.

Orko Silver Corp. (OK, TSX-V)

One needs to look no further than Orko Silver (OK, TSX-V) to see how quickly an oversold stock can rebound as soon as the Venture begins to move higher…just last Wednesday, OK closed at $1.15…yesterday it closed at $1.70, a nearly 50% move in just three sessions…it will now likely encounter some resistance, as John’s chart points out below, but what this illustrates is the profit potential that exists for savvy traders/investors who aren’t afraid to buy into weakness and very oversold conditions…GCU and PRB were other good examples in recent days, and RBW could be another one coming up…

Note: John, Jon and Terry do not hold positions in OK.

Giyani Gold Corp. (WDG, TSX-V)

As always, perform your own due diligence and use the chart below as merely an introduction to this potential opportunity…Giyani Gold (WDG, TSX-V) is exploring properties in South Africa and Ontario, and the stock has found support right around the $1 level after climbing as high as $3.60 in early 2011…John’s 6-month daily chart shows some strong up momentum with WDG gaining 26 cents yesterday to close at $1.37…

Note: John, Jon and Terry do not hold positions in WDG.