BullMarketRun   BullMarketRun.ca

A Daily, Vibrant Voice Focused on Speculative Opportunities,
Commodities, and Economic & Political Trends Impacting
The Resource Sector & Equity Markets
 

"Market-Trouncing Returns Through Unbeatable
Technical & Fundamental Analysis of Niche Sectors"

October 4, 2012

BMR Morning Market Musings…

Gold is firm this morning, fueled by a stronger euro and rising tensions between Turkey and Syria…as of 7:55 am Pacific, the yellow metal is up $12 an ounce at $1,791…Silver is 27 cents higher at $34.91…Copper is is up 3 pennies at $3.78…Crude Oil is $1.37 higher at $89.51 while the U.S. Dollar Index has fallen one-third of a point to 79.49…

Today’s Markets

Equity markets are solid across the board today…the Venture Exchange, still looking to push through a resistance band between 1350 and 1365, is up 10 points at 1345 as of 7:55 am PacificDecade Resources (DEC, TSX-V) and Mountain Boy Resources (MTB, TSX-V) are among the volume leaders after reporting drill results this morning from their Red Cliff Gold-Copper Project in northwestern British Columbia…one of the holes returned 7.83 g/t Au over 35 metres (from 174 to 209 metres)…GoldQuest Mining (GQC, TSX-V)  is up another 7 cents at $1.46…the recent sell-off that took GQC down very close to its 100-day moving average (SMA) was a tremendous buying opportunity…

Draghi:  ECB Bond Buying Program Has Already Helped Ease Euro Zone Tensions

European Central Bank (ECB) President Mario Draghi said the bank’s recently announced bond buying program had eased market tensions, even though it has not yet commenced…speaking at a news conference this morning, after the ECB announced that interest rates would remain on hold, Draghi also reiterated that the euro was “irreversible”…Draghi added that Spain had made “significant progress” but that challenges remained for the country…he said the ECB had mechanisms in place should Spain request aid, but that he would also seek involvement from the International Monetary Fund…he emphasized it was up to Spain to decide whether to solicit aid…the ECB kept its main interest rate at 0.75% due to inflation concerns…

Middle East Tensions Escalate, Supporting Gold

Turkey’s parliament approved a measure proposed by Prime Minister Recep Tayyip Erdogan, giving the government broad powers to send soldiers into “foreign countries” after Turkish armed forces and Syria traded fire yesterday and again today…the measure is valid for one year and allows Erdogan to deploy troops into Syria without consulting with the national assembly in Ankara…the measure was opposed by the main opposition Republican People’s Party, which dubbed it a “war bill”…

U.S. Unemployment Claims Show Mild Improvement In Labor Market

The number of Americans filing new claims for unemployment benefits rose less than expected last week, according to government data this morning that points to some mild improvement in the labor market…initial claims for state unemployment benefits climbed 4,000 to a seasonally adjusted 367,000, the Labor Department said…the prior week’s figure was revised up to show 4,000 more applications than previously reported…economists polled by Reuters had forecast claims rising to 370,0000 last week…the four-week moving average for new claims, a better measure of labor market trends, was unchanged at 375,000 – the first time since December last year that the four-week average was unchanged…

Romney Energizes Campaign With Strong Debate

Cutting to the heart of their differences, President Barack Obama and Republican Mitt Romney laid out contrasting visions for the federal government in their first debate in Denver last night, sparring over tax-cut proposals, regulations and deficit-reduction plans…Romney, who clearly exceeded low expectations, effectively portrayed Obama as a champion of big government and spending who would raise taxes on job-creating small businesses, calling his approach “trickle-down government”…in an instant poll conducted by CNN, two-thirds of respondents said they believed Romney won the debate, with a quarter saying Obama had won…even Obama’s left-wing media friends conceded the President took a bit of a thumping…of course Obama was without his most valuable friend, Mr. Teleprompter, and seemed almost disinterested and disengaged at times…while Romney certainly advanced his cause last night, which will likely produce a further tightening of the polls, he still has a brand problem to deal with, and no doubt the Obama team will come out swinging harder than ever now to try and push back any momentum the Republican challenger should be able to build from last night…Romney also has to try to find a way to cut into Obama’s strong support among female and Hispanic voters…moderator Jim Leher’s woeful performance last night gave support to Romney’s common sense plan to eliminate all taxpayer funding for PBS which he pledged to do last night…if only Canada would do the same with the CBC which sucks a billion dollars out of taxpayers every year…

Huldra Silver (HDA, TSX-V)

As we’ve been stating since early this year, an emerging Silver producer with a high-grade deposit in British Columbia (Treasure Mountain, the nearest active mine to Vancouver) and led by a strong management team is Huldra Silver (HDA, TSX-V)…at the moment the company is in the final stages of closing a $6.75 million financing as announced September 17…mine development is completed and mining operations are underway with Huldra permitted for 60,000 tonnes a year…following this financing, which will give it approximately 50 million shares outstanding, the company will have a modest market cap in the range of $70-75 million…much of the investment community in our view is still unaware of this opportunity as Huldra just hasn’t been aggressive, up to this point at least, in rolling out its story to the retail market…we believe that is about to change, especially with the recent announcement that the company has retained Renmark Financial Communications to “reinforce Huldra’s to profile in the financial community and enhance the visibility of our project portfolio,” according to President and CEO Ryan Sharp…we’ll have much more on Huldra in the coming weeks, and this success story is also an illustration of the tremendous geological potential of British Columbia which bodes well for other strong exploration plays we’re following in that province including Rainbow Resources (RBW, TSX-V), RJK Explorations (RJX.A, TSX-V) and Parlane Resources (PPP, TSX-V)…

Below is a 2.5-year weekly Huldra Silver chart from John that shows the stock is well-positioned to bust out from a bullish symmetrical triangle at some point during this fourth quarter…

FDG Mining Inc. (FDG, TSX-V)

Nicaragua is a highly favorable mining jurisdiction, and a company “flying under the radar” that we believe is very worthy of our readers’ due diligence is FDG Mining Inc. (FDG, TSX-V)…FDG is looking to put its Topacio Property into production next year while also continuing to test the blue sky potential of this multiple vein system…the company released an updated resource estimate earlier this week – 2,702,984 inferred tonnes grading 3.97 g/t Au containing 344,664 ounces…the resource is all within 150 metres of surface, and at least 30% is amenable to open-cutextraction…technically, FDG is looking particularly interesting given a classic “cup with handle” formation on the chart as John shows below…

Richmont Mines (RIC, TSX) Chart Update

Notes:  John, Jon and Terry do not hold positions in HDA, FDG or RIC

23 Comments

  1. Jon – Of course Obama was without his most valuable friend, Mr. Teleprompter,

    Bert – Do you take pride in trying to disgrace our neighbors President. Please
    show some consideration for our American friends, who frequent this board
    & support President Obama… Shame !

    Comment by Bert — October 4, 2012 @ 7:18 am

  2. Bert, why cant Jon state what he wants to about the President. After all, we do have the freedom of speach. Would you be ok with Jon saying how great Obama is.

    Comment by jimmy — October 4, 2012 @ 8:04 am

  3. Bert, I’m as pro-American as any Canadian, and the United States is the world’s greatest force for good. I just happen to be a staunch conservative, and as a staunch conservative I find Obama’s view of government and his approach to the economy and international relations to be a disaster. Obama is the American version of Canada’s Trudeau. That’s just my opinion, and it’s completely separate from my very positive view of the United States as our neighbor and greatest friend and ally. This election will have huge consequences for the markets, so it’s obviously critical to follow. In terms of the teleprompter comment, that’s a fact, and many analysts have pointed it out. Obama can deliver a great speech, with the aid of a teleprompter, but he has proven to be much less effective in unscripted situations like news conferences or events like last night. In that sense, he’s no Bill Clinton or Ronald Reagan. In terms of Romney, his performance last night will help shore up what has been a horrible campaign. But at the end of the day, I believe Obama will still prevail. Neither candidate last night effectively dealt with the debt issue, by the way, which is perhaps one of several reasons Gold is doing well today.

    Comment by Jon - BMR — October 4, 2012 @ 8:19 am

  4. JON – Bert, I’m as pro-American as any Canadian, and the United States is the world’s greatest force for good. I just happen to be a staunch conservative, and as a staunch conservative I find Obama’s view of government and his approach to the economy and international relations to be a disaster. Obama is the American version of Canada’s Trudeau. That’s just my opinion, and it’s completely separate from my very positive view of the United States as our neighbor and greatest friend and ally. This election will have huge consequences for the markets, so it’s obviously critical to follow. In terms of the teleprompter comment, that’s a fact. Obama can deliver a great speech, with the aid of a teleprompter, but he has proven to be much less effective in unscripted situations like news conferences or events like last night. In that sense, he’s no Bill Clinton or Ronald Reagan.

    Bert – It’s elementary my friend, he’s as good for him said me, as you are good for you. I
    appreciate your stock picks & your charts, but i get tired when over & over, we have to read
    digs about Mr. Obama. It’s who the American’s picked, a first black President & now they once
    again have a chance to vote for him or his opponent & i feel sure they, especially those who
    support Mr. Obama, don’t appreciate any negativity from this end. I have been on this board
    for an extended period of time & i have never ever made one negative comment about Mr. Romney,
    although i can write a book. I have no problem, if you folks started a separate political or a
    religious site, but your intentions have been made clear with this site, that is, to chart your
    way to success & i appreciate that, in particular, if you can help some souls out there financially.
    I realize by posting in such a manner, i may be kicked off this site, so be in, but i have never
    backed away from putting forward an opinion. I always try to be mannerly, but sometimes i find
    it difficult, especially when i feel our neighbor’s President is being sniggered at unnecessarily..
    You may argue, it’s your site & you can write what you like, free speech, etc., but please be advised,
    i can also put forward an argument in that regard. Have a good day everyone. R !

    Comment by Bert — October 4, 2012 @ 8:55 am

  5. Jon/BMR

    I am an American and you have my permission to bash Obama all you want, he deserves to be bashed and it still amazes me today that he is the President of the Greatest Country on earth! You are exactly right about the teleprompter too, the teleprompter is what got him elected in the first place, because it is very obvious he has done nothing to help this country while he has been president.This Country has never been more divided. As far as the debt that we are in, there is nothing that any candidate can really do at this point, what needs to be done would be way too painful for too many people and the politicians/congress will never stand up and vote to do what is right. So it doesn’t matter who gets elected we are going to see massive inflation which some people seem too think will be better than cutting out all of the Gov’t spending and hand outs to those who do not want to get off their butts and get a job. Oh that’s right Obama killed all of the job growth, who wants to expand their business when they are never sure of how much Obama is going to take from them?, Romney will be better for business down the road, but Obamacare has to be repealed first.

    What a great country I live in, I can sit here in front of my computer and give my opinion on the WORST President the United States has ever had, and not get thrown in jail,yet anyway. I just have to keep reminding myself that God is in control, and his will will be done!

    sorry for the off topic, will stick to the stocks from here on out…

    GO RBW AND NEWSTRIKE CAPITAL, then I won’t have to worry about a job, lol…

    Comment by greg — October 4, 2012 @ 8:56 am

  6. Greg – I am an American and you have my permission to bash Obama all you want,

    Bert – I am a Canadian & you don’t have my permission, not that it makes any difference to the writer.

    Greg – sorry for the off topic, will stick to the stocks from here on out…

    Bert – You are not off topic my buddy, this is not entirely a stock site, it’s
    also political, haven’t you noticed ! R !

    Comment by Bert — October 4, 2012 @ 9:08 am

  7. Jon,

    Can you please give me some insight into the drying up in volume for RBW? When/what can we expect here in terms of news…

    Comment by Billy — October 4, 2012 @ 9:26 am

  8. The drying up in volume in RBW – I’ve spoken to John and others about this…it’s being viewed as a bullish sign as it seems the anxious sellers under 25 cents have dwindled significantly….there’s a bit of a wall at .22-.225 but once that is cleared, the breakout thru .25 is essentially underway IMHO…..there are a few potential catalysts for that – International, Gold Viking, Nevada…….and my gut tells me we’re going to see something game-changing regarding at least one of those properties, with news likely just around the corner given what was said last week at the reception……I’m picking away at a little more RBW this morning in between my responses to Bert……BTW, stocks/politics/economics – they are all interwoven and understanding political trends are crucial right now in terms of making stock selections…..

    Comment by Jon - BMR — October 4, 2012 @ 9:41 am

  9. I for once agree with Bmr that the low volume with rbw should be viewed as a little bullish compared to all that sellin weeks ago time will tell.

    Comment by Gerry — October 4, 2012 @ 9:55 am

  10. Both Obama and Romney are rabid war mongerers and neither will try to end America’s constant interference in other country’s business. Ron Paul was the only candidate who would have made any difference and he was treated like dirt by both the media and the Democratic party. Both of these candidates are bought and paid for by Wall Street.

    Comment by Patrick — October 4, 2012 @ 9:59 am

  11. Jon – Stocks/politics/economics – they are all interwoven and understanding political trends are crucial right now in terms of making stock selections…..

    Bert – We may be in trouble if RBW was selected because of politics, tell me it is not so.
    When i sold RBW at 0.265, way back when, it was suggested i may be making a mistake,
    surely it wasn’t because of political trends at the time. Anyway, i will try making
    this my final response on this matter, notice i stated, i will try. Good luck ! R !

    Comment by Bert — October 4, 2012 @ 10:02 am

  12. Thanks for your response Jon – so you think we can see some results on the drilling RBW is doing in the near future?

    I can’t help but be slightly nervous while we wait the results – this could potentially be a make it or break it in my opinion

    Comment by Billy — October 4, 2012 @ 10:33 am

  13. @patrick. you are right my friend but it goes much deeper than wallstreet. ever read the bood 1984? ever see the document iron mountain, etc etc i could go on and on, free mason, zionist, nwo. way to much to explain to most on this board who have been dummied down to the point they are lost. but it is nice to see some like you are still out there patrick that understand what is really going on. republican and democrat eh, right wing and left wing. two wings on the same bird. real phsycopaths running the states are behind the scenes, ie, vatican,…..funny people will read this and say im crazy although everything can be backed with evidence and proof, its all there for anyone to see, they dont even try to hide it. in the age of information ignorance is a choice.

    Comment by heath stockford — October 4, 2012 @ 10:46 am

  14. Heath… the Vatican? I would welcome the opportunity to see the evidence of that. By all means if this was five hundred years ago I would tend to agree. But to each their own.

    Greg/BMR… Obama uses a teleprompter? Next someone will accuse him of not writing his own speeches. This is not something that is even relevant to the discussion. They all use focus groups and have writers that establish talking points etc to tailor-make a message that the masses can understand. It’s sound bite politics and if you think Obama is the only one doing it I have two words for you… Karl Rove.

    There is absolutely no reason to blame Obama or any other individual the current level of hostility between the two parties. I can only presume that whoever posted this has only followed politics for the last 42 months. I think that perhaps the fact that the Bush administration got in the first time by cheating (florida, look it up) and the second time by lying (war on terror) might have something to do with the current level of hostilities, but this is inherent in a two party system particularly in a time of turmoil.

    As for Obama being the worst president ever, please give me your opinion of which president took office of a country in worse shape than Obama. Do you think that the problems that currently plague the US are all 3.5 years old? Social Security, the economy, medicare, foreign policy, terrorism, enviromental issues? I guess you are right, I only wish we could get back to 2007 when none of this stuff was even on the table, those were the days! Too bad Bush could not have served a third term, or maybe McCain and Pallin could have done a better job. We certainly would not have any of the above mentioned problems if that horrible Obama would have lost in 2008. Seriously, turn off Fox News and educate yourself.

    Comment by Mike — October 4, 2012 @ 12:16 pm

  15. Rbw – personally I do not think we will pass 0.22 before we get any update / news

    Comment by Kalkan - Sweden — October 4, 2012 @ 12:21 pm

  16. @Mike
    Like I said Go RBW and NES…

    Comment by GREG — October 4, 2012 @ 1:21 pm

  17. I tried staying quiet, but i just couldn’t resist telling Mike, that his post is spot on.

    Something which came to my mind later today.. Isn’t bashing others the reason we are
    still in slow mode on this board & that our posts have to be scrutinized before being
    released. My question remains, why is it okay to bash the PRESIDENT OF THE UNITED
    STATES, but not okay to bash lowly folk, like me, not that i enjoy reading negative
    comments about anyone, but it is a point i want to make, what’s wrong for the Goose
    should be wrong for the Gander. We are not in a position to impose penalties on anyone,
    so our only choice is to speak out. I realize the paragraph in question was not that serious,
    but it’s the intent & it’s been going on for sometime now, so today it took it’s toll on me.
    Some may wonder why i feel so strongly for a President of another country. I have followed
    him since he made his intentions known, that he wanted to be the President of the United
    States & being a black man, it really intrigued me. Mike stated my feelings precisely, Mr.
    Obama took on a mess & against all odds, he is slowly but surely working the country out. We
    think the markets are bad now, but i hate to think what it would be like, if he failed to take
    decisive action. I will now sign off with the following words, ”’How soon we forget”’. R !

    RBW
    We were given an impression that RBW would have some kind of a release this week. It’s still
    possible but tomorrow being Friday, i would suggest they may have neglected to stop at that
    red light again…Oh well ! R !

    Comment by Bert — October 4, 2012 @ 2:39 pm

  18. Government is not reason. It is not eloquence. Government is force; like fire it is a dangerous servant — and a fearful master.”
    —George Washington, 1797

    Rick (from the USA)-Obama stands for more government which means more force

    Comment by Rick — October 4, 2012 @ 4:21 pm

  19. RBW… we are all testing our patience … whoever wants to get off the bus and take another one. It is your call. I will stay on this one until level 5 … 55 cents stock! I am just wondering when will CRU (formerly SD) come back! Hopefully, we do not have to wait too long!

    Comment by Theodore — October 4, 2012 @ 6:18 pm

  20. Geesh

    Comment by dave — October 4, 2012 @ 7:16 pm

  21. Theodore – RBW… we are all testing our patience … whoever wants to get off the bus and take another one. It is your call. I will stay on this one until level 5 … 55 cents stock! I am just wondering when will CRU (formerly SD) come back! Hopefully, we do not have to wait

    Bert – One thing is for sure my buddy, i know when to change my means of transportation.
    Why is it you seem to be so patient with RBW, yet you show impatience with CRU
    (formerly SD ?

    The problem with RBW, is that the so called promotion is worn out. The promotion
    started even before they had their permit to drill, which tells me, many were
    suffering from anxiety attacks, over anxious in other words. They wined & they
    dined, they visited the site, they took pictures, they lined up interviews, before
    finally managing to get, what i believe to be, one permit. These days, they seem to
    be out of pacifiers, they don’t seem to have much more to resort to, only promises
    & for everyone to keep their fingers crossed, hoping the drills will hit. (Don’t
    count your fortunes yet folks)…We have a rainy day, suddenly it starts to clear up,
    low & behold, we see a beautiful RAINBOW, we jump into our cars, we have to find the
    end of that Rainbow, we drive & we drive, it seems to be never ending & finally we have
    to face reality, there is no end to that there Rainbow, it was only an arch of colors,
    in other words, a deception…. R !

    Disclaimer..The above was written with humor in mind, as i do expect to make some profit from RBW.

    Comment by Bert — October 5, 2012 @ 3:45 am

  22. NHK.V might be one to watch. Close to $10million in the bank and.1.4 million oz of gold. Just got pumped yesterday on gold report blog….

    Comment by db — October 5, 2012 @ 5:53 am

  23. Even if that pot of gold (or as in this case high grade silver) at the end of the rainbow forever eludes us we still have that ray of sunshine named Bert

    Comment by Rick — October 5, 2012 @ 6:03 am

Sorry, the comment form is closed at this time.

  • All Posts: