The CDNX has overcome its March jitters and the short-term signal has just become very bullish (despite the pullback last month, the bullish long-term trend was never in question).
The Venture Exchange decisively broke through critical resistance today, closing at its high of 2354 as Gold suddenly took off and finished above $1,450 for the first time ever.
John’s updated CDNX chart below says it all (the next major target for Gold is $1,500 – John’s $1,600 target by June outlined in mid-January is looking very plausible). Fasten your seatbelts, everyone – this ride has the potential to be a wild one, particularly if the CDNX shoots through the early March high of 2465.
We’ll be looking at some specific situations in tomorrow’s “Morning Musings” that have the potential of performing extremely well in the current environment.
Hey guys thanks for the update, can you give us an update on SFF’s chart, thinking of averaging down right here with this news today, might be a good time,
thx greg
Comment by GREG — April 5, 2011 @ 4:28 pm
GBB’s NR format is better this time around. Result is so so. Not much gold around the waste pile or the southwest corner of the block model. Some of the results may not get into the NI43-101 report depending on the cut off. Multi million ounces are there, but I’ll need to lower my resourece estimate by a bit.
Chart wise, I think GBB finished consolidating. But I don’t know which direction the stock is headed in the short term.
Comment by Bruce — April 5, 2011 @ 6:43 pm
A few thoughts on the GBB news with more comments in our “Morning Musings” piece…tonnage continues to build, no spectacular results out of these 25 holes but some encouraging numbers nonetheless that help move things forward…Hole 179 (72.25 metres grading 1.25 g/t and 156 metres of 0.61) shows mineralization continues to push eastward from Pit #1…six holes drilled just NE and SE of 179 under the waste pile will be important to look for (198, 199, 201, 248, 250, 253 – assays to come)…Hole 97 was a nice cut likely of Vein #2, 46.7 metres grading 1.51 g/t…holes like 69, 124, 136 and 193 don’t get most investors excited but they’re very important to the overall picture with long intersections of lower grade (177, 113, 189 and 165 metres respectively grading between 0.31 and 0.42)…Basa will have no problem with those numbers, keeping in mind the “upgrading” effect at Granada…structure is there…more bulk sampling and different types of drilling will bring the grades up…just a few holes reported from the southwest corner of the Block Model…many more to come…it continues to be a promising area…a smattering of holes from the Eastern Extension, again nothing spectacular…many more to come from there still including the northern part where good visuals have been reported…interesting to note that on GBB’s drill map, three step-out holes have been drilled north of 55 and 108…246, 90 metres northwest of 108…241, 145 metres north-northeast of 108…and 243, 90 metres northeast of 108…246, 241 and 243 are all important holes…nothing mentioned about drilling commencing further east in LONG Bars Zone 2 (Aukeko)…February’s news stated a drill was being moved out there in March…Aukeko is a key target…assay results are now in on nearly half of the 228 holes completed so far (45,000 metres) in Phases 2 and 3…by my calculation 47,730 metres in total have been completed since December, 2009, not 67,730 metres…the case for the LONG Bars Zone remains intact…much, much more drilling lies ahead as this is all about volume (which is why we wanted to see more than 2 rigs by 2011)…the 43-101 this summer will be extremely helpful in terms of pushing this exciting project forward…
Comment by Jon - BMR — April 5, 2011 @ 8:17 pm
Thanks Jon for finally turning ‘positive’ once again. It’s good to be cautious but the 20% correction appeared to be too much as it was too early in the year. Usually, these are the best few months of the year before summer. Do you think we will have a ‘May’ effect as we’ve been thru several corrections already?
Comment by STEVE — April 6, 2011 @ 4:41 am
Steve
If i may, while waiting for Jon’s opinion, i would like to respond & state, that selling in May
& going away, may be a mistake this year. Good luck !
R !
Bert
Comment by Bert — April 6, 2011 @ 5:16 am
As it turned out there was an 18% correction from 2465……the possibility of a 3-wave correction was too significant to ignore. But the move past 2330 changes the dynamics. The potential now I believe exists for a steep advance, followed by another correction.
Comment by Jon - BMR — April 6, 2011 @ 8:59 am