Gold has held above the important $1,620 level this morning and is now challenging the critical $1,640 resistance area…as of 6:15 am Pacific, bullion is up $17 an ounce at $1,638 after climbing as high as $1,641…Silver, after a sharp upside move yesterday, is up another 40 cents to $29.21…Copper is up 6 pennies at $3.43…Crude Oil is $1.22 higher at $97.19 while the U.S. Dollar Index has tumbled half a point to 81.95…
Silver Set To Sizzle
Silver staged a breakout yesterday that requires confirmation today as shown in John’s chart below…there are many bullish aspects to this chart, including of course the rounding bottom…
Gold Buyers Prosper In Crisis-Hit Italy
In a country suffering from economic woes, buying Gold off desperate people has become one of the few boom industries in Italy according to a Reuters report this morning…city centres are being transformed as traditional shops go out of business, their signs replaced by ones that announce “Compro Oro”, or “I Buy Gold“…the Eurispes thinktank estimates the number of “Compro Oro” shops has quadrupled in the last two years…the growth of the industry is “a very good indicator of the level of hardship in the country,” stated Gian Maria Fara, the think tank’s president…there are now an estimated 28,000 “cash for Gold” outlets in Italy, according to Gianni Mancuso, one of six centre-right lawmakers who last month presented a request in parliament for the government to regulate the sector more strictly…
Today’s Equity Markets
Asian markets were quiet overnight with China gaining 11 points to 2118…European shares are modestly higher this morning with miners and banks leading the rebound as investors continued to speculate on the prospect of the European Central Bank stepping strongly into bond markets…stock index futures in New York as of 6:00 am Pacific are pointing toward a mildly positive open on Wall Street…
Speculation Grows Over Potential ECB Action
Conjecture continues as to whether the ECB is preparing to cap the borrowing costs of troubled sovereign borrowers…traders cited an article in London’s Daily Telegraph again raising the prospect that the ECB was drawing up detailed plans to put a hard cap on Spanish and Italian bond yields…an initial report in German weekly Der Spiegel on the potential bond-buying strategy of the ECB was played down by bank officials yesterday…where there’s smoke there’s fire, however, and there seems to be little doubt the ECB is working toward some sort of major announcement in September…
The euro surged today, pushing back through the $1.24 level against the greenback to a two-week high on reports the ECB would step in to stabilize peripheral bond markets…ECB executive board member Jörg Asmussen gave support to the idea that the ECB will act decisively to bring down bond yields in struggling euro zone countries at its September meeting…
Asmussen, in an interview with a German newspaper, gave his support to Mario Draghi’s plan for unlimited bond purchases…according to the Financial Times, that support is given extra weight by Asmussen’s closeness to German chancellor Angela Merkel and followed a weekend report (subsequently refuted by German officials) that the ECB would move to cap peripheral yield spreads over German Bunds…
Spain’s short-term debt costs dropped sharply from a month earlier at auction this morning as investors bet on ECB intervention in bond markets, though uncertainty over the details meant yields remained punishingly high…the Treasury sold 4.5 billion euros ($5.6 billion) of 12-and 18-month T-bills at the top end of its target of between 3.5 billion and 4.5 billion euros, though demand was mixed…average yields fell to 3.070% on the 12-month bill from 3.918 percent in July, with 3.5 billion euros of the paper sold…
High Frequency Trading May Account For 42% Of Canadian Trades
An interesting article in this morning’s Globe and Mail regarding High Frequency Trading which is now behind as many as 42% of all Canadian trades according to a study co-authored by Ontario Securities Commission researchers…writer Boyd Eerman: “From 2010’s ‘Flash crash’ that sent stocks tumbling one spring day to this summer’s debacle at Knight Capital, which lost $400-million in half an hour, HFT is in a harsh spotlight. the sense that markets are unstable at best, and rigged at worst, is eating into investor confidence…events such as the Flash crash, which was blamed on electronic trading, ‘are crystallizing into a situation that suggests some form of regulatory response would be required’, stated Howard Wetston, head of the OSC..
Financings Down Sharply In Mining/Exploration Sector
An interesting chart in this morning Wall Street Journal shows how financings have been drying up in the mining and exploration sector…ultimately, this will have some bullish implications for the sector but in the meantime competition for investors’ dollars is extremely fierce with financings at levels not seen since 2005…
Venture Exchange
The CDNX pulled back slightly yesterday but showed some strength toward the end of the trading session, closing at 1229, and should respond favorably to today’s moves in commodities…the short-term trend is clearly bullish, and a challenge of the 1245 resistance could come as early as today or tomorrow…below is a 4-month daily chart from John
Everton Resources (EVR, TSX-V)
At just 11 cents, the risk-reward ratio for Everton Resources (EVR, TSX-V) has to be considered highly favorable given the surge in interest in the Dominican Republic thanks to GoldQuest Mining’s (GQC, TSX-V) Romero discovery at its Escandalosa Project…Part 2 of our interview with Everton President and CEO Audet will be posted at 10 am Pacific this morning…unlike GoldQuest or Unigold, EVR is not drilling at the moment but that will likely change in the upcoming fourth quarter with the company expected to complete one or more joint venture agreements for further exploration of some of its promising landholdings in the immediate vicinity of the massive Barrick-Goldcorp Pueblo-Viejo deposit…a thorough compilation of all the exploration work conducted by Everton in the DR over the last number of years is currently being finalized by Caracle Creek International Consulting…the Everton chart is looking strong as outlined by John below…the 100-day moving average (SMA) has reversed to the upside with solid support at the 200-day moving average (10 cents) which has flattened out and could reverse higher in the near future…
Unigold Inc. (UGD, TSX-V)
Ungiold Inc. (UGD, TSX-V) gained 3 cents yesterday on impressive volume to close at 46.5 cents…the trend with UGD is strongly bullish, as shown in John’s 2.5-year weekly chart below, and a “Wave 5” pattern appears to have developed…note the surge in volume this summer which has coincided with UGD’s solid drill results from its Candelones Project north of GoldQuest’s Romero discovery…
Note: John and Jon both hold positions in Everton Resources.
John – a confirmed breakout on rbw. How is a breakout considered on a stock that opens half a cent higher on monday and closes even a breakout. Also, a hanging man or top hammer as some would call it, indicates a reversal in trend. time will tell.
Comment by dave — August 21, 2012 @ 5:51 am
I scooped some LOT at .15 on 08-10. Keep your eyes on this one. Started drilling in June.
Comment by dave — August 21, 2012 @ 6:03 am
No doubt the market is getting better. I can hardly keep my eyes off
the screen these days, as opposed to not been able to keep my eyes
on the screen in the past. R !
Comment by Bert — August 21, 2012 @ 6:04 am
Any interest in ZON.V ? Ron Struthers mentioned it in his gold report interview (good read btw),looks like big vol/bottoming here (I hope!!).
Comment by mike — August 21, 2012 @ 6:23 am
Dave
The resistance level was at 24c. Friday’s close was above that resistance so it was a breakout. Monday’s trading closed above the 24c resistance so it confirmed the breakout.
Tuesday’s candle cannot be called a “hanging man” because a hanging man, by definition, is a bearish candle that occurs at the end of an uptrend. In this case we are look at the start(hopefully) of an uptrend from an 8 day consolidation.
Hope this helps.
Comment by John - BMR — August 21, 2012 @ 6:35 am
my feeling on rbw is buy the rumor sell the news
Comment by sean — August 21, 2012 @ 7:10 am
Gotta disagree with you John. The uptrend started at .135 – The candle was a definite hammer at the top or (hanging man) depending which site you look at.
Comment by dave — August 21, 2012 @ 7:40 am
Uptrend – downtrend. Only time will tell. My avarage is 0,195. I’m hanging in there… I like the odds
Comment by Kalkan - Sweden — August 21, 2012 @ 7:51 am
The ANON selling is becoming very redundant. Hard to move forward when a 24.5c bid gets hit everytime it pops up.
Comment by db — August 21, 2012 @ 7:53 am
Kalkan
We all believe in RBW, but we need to have a conversation as we move
along. There’s no way, would i expect anyone to sell on a day’s chart
reading. To succeed one must be patient.. I look at it this way, Terry,
Jon & last but not least, John, are building a business & no way would
they be so forward looking & take such a chance of failing with their
aspirations, if they weren’t very, very confident & they are much closer
to the company, than we are. Can’t you visualize Jon up on that mound
of silver, counting the dollars. Good luck ! R !
Comment by Bert — August 21, 2012 @ 8:01 am
GBB finally down to 8.5 cents as per my prediction. Low … no volume….will be a losing sign. A week ago, one day shine had finished. GQC after passing $2 mark is approaching today’s low… make sense to close lower today. RBW … still waiting for big players to join the show. Stay positive … you will be rewarded in this one.
Comment by Theodore — August 21, 2012 @ 8:14 am
I have a large holding of rbw but a question that keeps hauntig me is if rbw is bringing up a lot of the shiny stuff why wouldnt people with this information be buyiny like crazy, People like the drillers and their freinds and family or would this be considered buying on inside information. bmr can you help me out on this question
Comment by gil — August 21, 2012 @ 8:33 am
Too many on the asks from .245 to .295 for a significant move up without assay results. (and that’s not including the ones we don’t see) On a brighter note, nice to see the venture up over 10pts today (so far)!
Comment by Tony T. — August 21, 2012 @ 8:49 am
Gil, ask yourself this question. Were there leaks before the GoldQuest discovery? Not at all. The stock hardly moved before the news came out. I’m sure RBW has a process in place, just like GQC, to prevent that kind of thing from happening as you mentioned. Information is kept very tight I’m sure.
Comment by Jon - BMR — August 21, 2012 @ 8:53 am
rbw maybe today anon runs out stock to dump.
Comment by BRIAN — August 21, 2012 @ 9:04 am
@Bert
First of all have have to tell you that I like your posts here. Enjoying reading them. Just ignore those who criticise your posts. You’re absolutely right. Patience is the key! And of course if the bmr guys wouldn’t be that sure as they are in this case I wouldn’t be in rbw at first place. But what ever happens I will not blame them. Anything can happen and I’m the only one responsible of my own investments. I’m the one pressing the buy button! If rbw hits and the stock rockets I will be forever grateful!
Comment by Kalkan - Sweden — August 21, 2012 @ 9:33 am
It is me again, I am waiting for a fill up of my small lot at 24 cents (RBW). GQC may close below $1.90…
Comment by Theodore — August 21, 2012 @ 11:04 am
Ooops! just filled… thanks for selling your RBW.
Comment by Theodore — August 21, 2012 @ 11:06 am
ANON baCK SELLING AGAIN
Comment by BRIAN — August 21, 2012 @ 11:18 am
GBB will rise again, time will heal this stock.
Comment by Hugh — August 21, 2012 @ 11:22 am
Great, Anon now has an iceberg at .245. over 10.6 million shares sold since jan 1st 2012. Grrrrr…….
Comment by Tony T. — August 21, 2012 @ 11:59 am
RBW… we need more patience as when it moves up … it will be unstoppable until wave 5. If you have extra cash, load up more RBW at a low price…. meaning below 24 cents. GQC finally got some adjustment, closed at $1.87 … some people really have the guts to go beyond $2 mark and I do not have that. As I said, it will not be up up for this one. I did not cross out GBB now but certainly not buying at this price. 7.5 cents will be good to entry, but just put a buy order. @Hugh, you are right, we need time for this one …. perhaps, in October, we will see some recovery.
Comment by Theodore — August 21, 2012 @ 12:20 pm