BullMarketRun.ca

Rouyn-Noranda, Quebec, 1:45 pm Eastern

Greetings from the famous Canadian mining community of Rouyn-Noranda in northwestern Quebec where we landed just two-and-a-half hours ago…we’ll be in the area researching various situations over the next week…after yesterday’s $34 drop, Gold fell by as much as another $18 this morning before bargain-hunters jumped in…as of 1:45 pm Eastern, the yellow metal has recovered about half of its losses and is currently down $8 an ounce at $1,373…Silver is off 57 cents at $29.23 while the U.S. Dollar Index has jumped more than three-quarters of a point to 80.18…the CDNX, which dropped as low as 2244 this morning, has trimmed its losses and is currently down 18 points at 2257…the fact the CDNX has held up so well in the face of a $52 plunge in the price of Gold over two days clearly demonstrates the underlying strength of the Venture Exchange and strongly suggests that all we’re seeing in Gold right now is a normal minor correction…after 10 consecutive winning sessions, a pullback of a few percentage points in the CDNX is also a healthy development…the Index nearly touched its 10-day moving average (SMA) this morning which has consistently provided strong technical support since late July with the exception of a brief period in November…Gold Bullion Development (GBB, TSX-V) found technical support in the upper 70’s, as expected, and is currently up 3 pennies from yesterday at 81 cents…Cadillac Mining (CQX, TSX-V) has pulled back slightly after a powerful move yesterday…CQX is off 3 pennies at 44 cents…Adventure Gold (AGE, TSX-V) is 2 cents higher at 48 cents…all three companies will be in the spotlight during our visit to Rouyn-Noranda in addition to other situations we’re examining…it’s a hot-bed of exploration activity out here in what is undeniably one of the most exciting and prolific areas of the world to explore for Gold…we’re also investigating some silver opportunities…Seafield Resources (SFF, TSX-V), waiting for CDNX approval of its recently closed $15 million financing, fell briefly below 50 cents this morning (49.5 cents) and is currently down 2 pennies at 51 cents…we still very much like the trading action in Seafield over the last few weeks and we expect bargain hunters will eagerly soak up any stock that comes available (if it does) in the 40’s…a drop below the 50-cent financing price seems unlikely, however…strong technical support exists in the low 30’s for GoldQuest Mining (GQC, TSX-V), Greencastle Resources (VGN, TSX-V) and Currie Rose Resources (CUI, TSX-V)…Richfield Ventures (RVC, TSX-V) has nicely unwound an overbought condition that arose in late November and is very close to 50 on the RSI where it has rallied from significantly before…at $4.48, RVC is also strongly supported by a rising 50-day SMA (currently at $4.10) which it has not dropped below since late July…