CDNX
Volume has picked up significantly, a bullish sign, with the CDNX closing Friday, March 5, at 1,558, a strong 26-point weekly gain. This is a very powerful looking market and we now expect it will surge to a new 52-week high sometime this month. The overbought technical conditions we saw in January have unwound, paving the way for this fresh advance. Another 10% gain from here, or a 150-point move, could easily occur this month. The action we’ve seen recently is very similar to the July-August period last year when the market ended a correction and then moved sharply higher. The bears are simply fighting a losing battle here – the bulls are firmly in control and should remain so into April at least. Ultimately, we believe the CDNX will reach our target area of 1,950 – 2,350 this year which means fortunes could be made by some in the weeks and months ahead.
Gold is equally bullish and has performed remarkably well in the face of U.S. dollar strength recently. Gold’s 50-day moving average has now turned positive, which confirms our bullish stance, and its December-January-February correction appears to have been a classic 3-wave reaction back toward an area of very strong support. We expect gold will at least try to break through its all-time high this month.
The BullMarketRun Portfolio – A Wild Week
Gold Bullion Development (GBB, TSX-V)
A discovery will certainly do wonders for a gold stock – what a week for GBB! Gold Bullion doubled this past week from 11.5 cents to 23.5, and could quite possibly pull off that trick again this coming week…the stock traded a whopping 25,352,588 shares over the final four trading days of the week after announcing outstanding assay results from its Granada Gold Property near Rouyn-Noranda, Quebec…at the end of the week the stock got a buy recommendation from the Coffin Brothers, David and Eric, who put out the Hard Rock Analyst (HRA) publication…the Coffins are internationally recognized in the resource industry with David being a geologist and obviously understanding that Gold Bullion could potentially be sitting on a very significant bulk tonnage, open-pit deposit 40 miles west of Osisko’s (OSK, TSX) Canadian Malartic Deposit…
Seafield Resources (SFF, TSX-V)
News came out from Seafield right near the close Friday with the company finally announcing it has completed its Colombian property acquisition agreement with privately-held Caribbean Copper and Gold Corporation (CCGC)…Seafield closed Friday at 28.5 cents, down 4 cents on the week, but should certainly recover that loss and then some this coming week…the accumulation in Seafield has been impressive to say the least over the past number of months, and the Colombian rock ‘n roll show now appears ready to begin…
Kent Exploration (KEX, TSX-V)
Kent has broken out technically with its highest close Friday (19 cents) since January 26…volume picked up significantly in Kent this past week with the stock ahead 3.5 cents…its low market cap of just under $7 million makes Kent an extremely attractive situation…the company announced late Friday morning that drilling has commenced at its Gnaweeda Gold Project in western Australia, a joint-venture with Teck…as much as we like Gnaweeda, we’re even more bullish on Kent’s Alexander River Property in New Zealand which has a historical, non-compliant resource of 640,000 ounces…drilling begins soon at Alexander River…
Greencastle Resources (VGN, TSX-V)
All is quiet on the Greencastle front, though we suspect some of the activity in Seafield could spill over into Greencastle…the companies have common management and Greencastle, we believe, still holds an equity position in Seafield…Greencastle closed this past week at 15.5 cents, unchanged…
Richfield Ventures (RVC, TSX-V)
Richfield broke to the upside this past week, closing at $1.70 for a 22-cent gain..drilling starts within a month or so at Richfield’s Blackwater Gold Project in the BC Interior, a potentially major bulk-tonnage target…Richfield could go on a spectacular run in the near future, but at the moment it will find resistance in the $1.80 – $1.90 area with the chart saying this stock is currently technically overbought…
Colombian Mines Corporation (CMJ, TSX-V)
Colombian Mines announced last week they are increasing their private placement from 3.16 units at 95 cents per unit to as much as 4.10 units at 95 cents to raise gross proceeds of as much as $3,895,000…this stock, which closed Friday at $1.06, a six-cent gain on the week, is likely range-bound between 95 cents and $1.10 until the financing is officially out of the way…we expect big things out of CMJ in the months ahead as it develops its high quality and significant land packages
