John: Today the CDNX opened at 1998, fell as low as 1993, and then rocketed up through the 2000 level to a high of 2011 before closing at 2009 for a gain of over 14 points.
Today’s 2-month daily chart is one that occurs once every decade or so. In every respect it is the long investor’s dream, completely bullish. As BMR has stated repeatedly over the last many months, the CDNX is in the midst of a bull run of historic proportions that ultimately should take the Index to new all-time highs.
Looking at the above chart in detail we see that the previously identified resistance band between 1900 and 2000 (two horizontal green lines) has been broken, and now this band should provide support. We see that for 3 days the Index hesitated at the 1900 level, then continued the climb and today broke above the 2000 mark. The EMA(10) moving average is providing close bullish support. When, sometime in the future, the trend does weaken a breakdown of this moving average could be the first sign.
There are 2 sets of Fibonacci levels shown. The blue set identifies a target at 1937 (blue dotted line). The CDNX hesitated for 4 days at this resistance level. The orange set indicates the next target is 2091.
The volume in the last 2 days has been the highest in the last 2 months.
Looking at the indicators:
We see that the RSI(2) indicator is at its extreme at 98% so we can expect some hesitation in the near future.
The Chaikin Money Flow (CMF) Indicator shows that the buying pressure has been increasing every day for the last 5 days and is at a 2-month high of 0.565 – very bullish.
The ADX trend indicator has the +DI (green line) at 53 and above the -DI (red line) at 6, and the ADX (black line) trend strength indicator is flat at a very high level of 70. This is an extremely bullish scenario.
Outlook: There is nothing on this chart to indicate the climb in the CDNX is going to stop in the immediate future.
Hi (hard working)guys/gals,@BMR
It’s great to see the CDNX moving forward and to see that it shows no signs of slowing, however, most if not all the Jr. Mining stks (GBB,CUI,NOX,GCQ,SD,EGM etc.) which are in BMR portfolio and mine, don’t seem to be making much if any progress in the upward trend. What seems to be the stall with these equities? Any insight?
Thanking u in advance,
Nikolay
Comment by nikolay — November 6, 2010 @ 10:09 am
Thank you for your question, but let me point out a few important facts….first, the BMR Portfolio overall is up approximately 200% over the last year and a bit which is triple the gain of the CDNX……just very recently, we’ve seen substantial gains in AGE, RVC, VGN, GQC and CUI….GBB, SD, EGM, CMJ and SFF have stalled but in a rip-roaring bull market like this, a rising tide doesn’t lift all boats (all the more reason to hold a basket of stocks) at the exact same time (NOX is not in the BMR Portfolio by the way)……you’ll see a rotation of leaders in the market (Canaco, for example, has done very little since the beginning of September)…the companies we’ve selected, we believe, will (ultimately) significantly outperform the market overall …….the other important thing to keep in mind is that the purpose of BMR is also to focus on the Gold market and the health of the CDNX overall……our analysis of these markets has really been incredible, I think, over the last number of months….when many other commentators and analysts were spreading doom and gloom in July, we were predicting a major bull market move in the CDNX…..we also correctly predicted a move to between 1900 and 2000 in October…..so our calls have been right on the money……this has given investors valuable guidance and has enabled some to make a lot of money in other stocks we haven’t even had a chance to highlight here…..
Comment by Jon - BMR — November 6, 2010 @ 12:02 pm