BullMarketRun.com

CDNX

As the chart below indicates, now is certainly the time to be heavily invested in quality CDNX stocks as all signs are pointing to a very robust month of March.  Not surprisingly, as we suggested could happen, the CDNX pulled back a little at the beginning of the week and decided to successfully re-test the 1,500 level.  An intra-day turnaround Thursday mirrored gold’s performance and was quite significant as the Index actually fell 20 points below its 50-day moving average, hit the now rising 20-day moving average dead-on, and rebounded sharply by the end of the session to close just under the 50-day.  That momentum carried into Friday’s trading and the CDNX jumped 13 points to close the week at 1,531, just 1 point below where it finished Feburary 19.  So we saw some encouraging and bullish technical developments with the CDNX this past week including a reversal in its 20-day moving average.

As the chart shows, the market seems to be back in a position similar to mid-July last year – just before it staged a 14% move to the upside in less than a month.  We could very easily see a repeat of that in March. The overbought conditions we saw in January (based on Stochastics and RSI) that are very evident on the chart have corrected, allowing for a fresh new advance in this market.

Gold continues to look strong and seems to be gearing up for an eventual assault on its December, 2009, high of $1,225.  As predicted, gold broke through a bullish falling wedge pattern this past week and made a quick run to $1,130.  It then then pulled back again but, importantly, remained above the top line of the falling wedge at around $1,085.  Gold staged an intra-day reversal Thursday and closed the week at $1,118.  Its 14-day moving average has swung positive and its important 30-day moving average will likely reverse this coming week after being in decline throughout all of January and February.  Bottom line: Gold is ready for another run, which is exactly what the Venture Exchange has been telegraphing.

The BullMarketRun.com Portfolio

Gold Bullion Development Corporation (GBB, TSX-V)

The technicals and fundamentals are aligned perfectly right now with Gold Bullion which means we’re likely to see a major imminent move to the upside in this stock…we issued a new alert on GBB Friday morning, accompanied by a chart to better explain our rationale as far as the technical side of the equation is concerned…we have done an immense amount of research on the Granada Property and we’ve reached out to those who understand the geological make-up of that region and the prolific nature of the “Cadillac Trend”…which is why we can say with near-certainty that Gold Bullion is indeed on the verge of something very significant here in terms of a potential discovery of a large bulk tonnage, open-pit deposit…keep in mind, Gold Bullion’s drilling in December and January was the first drilling it has ever done at this property…GBB did conduct a very large bulk sample in 2007 and came up with an impressive average grade of 1.62 g/t Au…historically, previous operators drilled a total of nearly 500 holes at Granada but for some strange reason all those holes were located over a very small footprint near the original mine workings…they weren’t considering the “big picture” of what might possibly exist in the surrounding area…Gold Bullion’s drilling has already opened up the “blue sky” potential of Granada with the discovery of near-surface economic mineralization hundreds of metres to the east and northeast in holes 5 and 15 in particular…this “deposit” is open in all directions and we can’t wait to see what happens when Gold Bullion pushes further east and north…Osisko’s (OSK, TSX) massive Canadian Malartic Deposit is 40 miles to the east-southeast of Granada…Osisko’s deposit is unique among “Cadillac Trend” deposits in that it is at shallow depths…Gold Bullion closed the week at 11.5 cents, a half penny increase from February 19…a total of 2.6 million GBB shares traded this past week…we are eagerly awaiting new assay results which have the potential of blasting this stock through resistance at 12.5 cents to much higher levels…Gold Bullion’s current market cap is only $9.3 million…

Seafield Resources (SFF, TSX-V)

What a story Seafield has been for our readers…this stock is up nearly 500% from when we initiated coverage last summer…that is a phenomenal gain, and the type this site is designed to produce…there appear to be some very big power boys behind this play, which we’ve stated all along, and the appetitie for this stock by M Partners this past week was indeed interesting to watch…M Partners accumulated more than 2 million SFF shares this past week (they didn’t sell a single share) and house positions show (from Aug. 25, 2009, through Feb. 25, 2010) that M Partners is currently net 3,231,6000 SFF shares…CIBC, Octagon, and Fraser McKenzie have also been big buyers…Fraser McKenzie started buying in December…they have accumulated 1.2 million shares and haven’t sold a single one yet…the market is still waiting for news regarding Seafield’s Colombian property acquistions which could be coming soon based on the current trading activity…ultimately, we see the potential for Seafield to reach the $1.00 level or better…presently, it is in an overbought zone on the RSI where it has reacted before…12 million private placement shares at 12.5 cents are also free trading as of Monday which has the potential of bringing at least a little bit of selling into the market…there’s also the potential of another private placement if for no other reason than “positioning” purposes…any immediate pullback in Seafield, however, should be relatively mild and considered a buying opportunity…Seafield was up 6.5 cents on the week to 32.5 cents on massive volume of 9.3 million shares…

Kent Exploration (KEX, TSX-V)

Kent had a difficult February with only four “up” days and closed the month at 15.5 cents…now is not the time for investors to get frustrated with Kent and get out of it…now is the time to be aggressively adding to positions as these bargain-basement prices aren’t going to last much longer…Kent is oversold technically and has bottomed, in our view, at the 15 cent level, just above its rising 200-day moving average…this is one of the best-managed junior exploration companies we’ve ever come across, and Kent investors can expect plenty of news in March with drill campaigns slated to begin in both Australia and New Zealand…Kent’s Alexander River Property in New Zealand is the one, we suspect, that is really going to power this stock forward…Kent’s current market cap is just under $6 million – incredibly cheap for a company with future cash flow (Flagstaff barite) and highly prospective, advanced-staged gold properties such as Alexander River and Gnaweeda…rest assured, Kent – like Seafield and Gold Bullion – will have its day in the sun…

Greencastle Resources (VGN, TSX-V)

Greencastle, which is trading just above its cash value,  has been quiet recently as investors wait for more news on the two wells it recently drilled in the Cabri-Boggy Lake area of southwestern Saskatchewan…we believe it’s also only a matter of time before the activity and excitement in Seafield spills over into Greencastle as Tony Roodenburg is the President and CEO of both companies…Greencastle, don’t forget, also held a substantial position (several million shares we suspect) in Seafield as of last fall before SFF really started to move…it’ll be very interesting to check out Greencastle’s year-end financials when they become available, probably toward the end of March…Greencastle continues to receive monthly royalties of greater than $100,000 from Primate in Saskatchewan…the company also has some quality gold properties in Nevada that warrant further exploration, a coal property in Manitoba near last year’s discovery by Westcore (WTR, TSX-V) and 7,000 hectares of shale gas interests in Quebec…if Greencastle attracts investors from Seafield, watch out…Greencastle finished February at just 15.5 cents and is at technically oversold levels from which it has rallied significantly before…

Richfield Ventures (RVC, TSX-V)

Not surprisingly, Richfield pulled back a little this past week after a huge gain the previous week…Richfield closed Friday at $1.48, down just 5 cents on the week…a 450,000 share Canaccord trade in the final five minutes Friday was certainly interesting…we expect a lot of fireworks with Richfield this coming spring as drilling starts up again at its very promissing Blackwater Project in the Interior of British Colombia…Blackwater has all the makings of a multi-million ounce bulk tonnage, open-pit deposit…25,000 metres of drilling is scheduled to start in April…with more drill results, a market cap of $250 million or better with Richfield is very possible which would mean a stock price four times where it is now…

Colombian Mines Corporation (CMJ, TSX-V)

We initiated coverage on CMJ in early December at 60 cents, and we consider the current share price of $1.00 to still be an attractive entry point for those who have not yet picked up on this story…Colombian is in the process of finalizing a $3 million private placement at 95 cents, so the stock is likely range-bound for a little while longer until the PP closes…CMJ has an incredible package of grass roots and some more advanced exploration properties in Colombia…we have no doubt this stock is ultimately headed much higher, especially with a bullish overall market…

Gold’s intra-day reversal yesterday was very significant in our view, and we believe gold is now very close to breaking through resistance at $1,130 – a development we suspect is going to occur sometime next week…gold is up $7 an ounce as of 9:30 Pacific time this morning to $1,113…the CDNX, which had one final fling with 1,500 yesterday, is powering ahead this morning, currently up 6 points at 1,524…the CDNX 20-day moving average has swung positive, so all moving averages with the Venture are back in bullish alignment…this market could explode in March…we also believe Gold Bullion Development (GBB, TSX-V) could soon explode…we issued an alert on GBB this morning after further review of recent trading activity and this stock’s incredible-looking chart…from a technical standpoint, Gold Bullion is poised for a MASSIVE break-out through resistance at .125…from a fundamental standpoint, our belief and theory is that the Granada Gold Property is shaping up to be a “Golden Highway” and could quite potentially host a multi-million ounce open-pit, bulk tonnage deposit or series of deposits…only a very small portion of this highly prospective property has been explored, and it stretches a full 7 kilometres to the east in the direction of Osisko’s 10 million+ ounce Canadian Malartic Deposit…with a market cap of only $9 million, Gold Bullion has incredible blue sky potential…Seafield Resources (SFF, TSX-V), which is up nearly 500% from when we initiated coverage last summer, is trading higher at 32.5 cents this morning on lighter volume of just over 400,000 shares…any weakness in Seafield should be considered a buying opportunity…
we are watching Kent Exploration (KEX, TSX-V) as it has been driven down recently and is heavily oversold on a technical basis…with drill campaigns imminent in both Australia and New Zealand, we expect Kent to have a very strong month of March – at 15 cents this stock is clearly an aggressive buy…

As readers of this site know, we have been extremely bullish on Gold Development Development Corporation (GBB, TSX-V) for over two months now since we uncovered this gem in mid-December at 7 cents. We stated at that point that Gold Bullion “is going to be our next Seafield“. Seafield (SFF, TSX-V) is up nearly 500% since we initiated coverage on it last summer.

Our belief and theory, based on endless research of the past producing Granada Gold Mine and the area surrounding it, is that Gold Bullion is sitting on potentially a major open-pit, bulk tonnage tonnage deposit, or series of deposits, at its 2 km x 7 km property six kilometres south of Rouyn-Noranda, Quebec, along the prolific “Cadillac Trend” which has hosted numerous multi-million ounce gold deposits.

What’s particularly intriguing about Gold Bullion’s property is the near-surface mineralization it is encountering. Most “Cadillac Trend” deposits are very deep, one or more kilometres underground. It’s possible that Gold Bullion does have some spectacular gold grades and intersections deep underground – that kind of drilling has never taken place at Granada – but what we do know is that the company is finding shallow mineralization at economic grades in areas where drilling has never occurred before at Granada. Previous operators in the 1980’s and 1990’s drilled some 500 tightly-spaced holes over a small footprint at the historic mine but for some strange reason ignored the surrounding area. Quite often, the best place to find a new mine is near an old mine. Gold Bullion has taken a fresh approach to Granada which is why they have expanded their land package over the last few years from a mere 71 hectares, around the old mine workings, to 2,300 hectares, pushing east in the direction of Osisko’s (OSK, TSX) massive Canadian Malartic Deposit which is just 40 miles away.

Gold Bullion started its first-ever drilling at the Granada Property last December and by the middle of January completed a total of nearly 3,000 metres and 25 holes. Assay results on 19 of those holes are pending. The mineralized zone at this early stage is already measured at 600 metres in length, 150 metres in width and up to 70 metres in thickness. Keep in mind this company has already completed a huge bulk sample at Granada with an average grade of 1.62 g/t Au. Stunningly, the waste from that bulk sample, along with stockpile waste from past bulk sampling programs at the Granada Mine by previous operators, returned a grade of 1.75 g/t gold. This confirms the presence of gold mineralization between the nine known vein structures which trend east-west as one large overall structure. The grades Gold Bullion is encountering at Granada are very comparable to Osisko’s grades at Canadian Malartic.

Looking at Gold Bullion’s chart, provided below courtesy of Stockwatch, it appears this stock is headed north in a hurry. All moving averages are in bullish alignment and the stock has made a consistent series of higher lows. The volume breakout in December of last year was hugely significant. And the overbought condition from January, based on Stochastics and RSI, has cleansed itself, paving the way for a breakout to a new 52-week high. We expect the wall of resistance at .125 to collapse very soon.

The recent turnaround in Gold Bullion’s 20-day moving average is significant as well and provides further evidence that a major short term move is in the works. Bottom line: the very favorable technical condition of this stock is suggesting that Gold Bullion is indeed on the verge of something big – and potentially very big – at the Granada Gold Property.

Gold has snapped back after a drop down to $1,088 this morning…the precious metal is now up $2.00 on the day at $1,099 as of 8:30 am Pacific time…yesterday we identified $1,085 as a key level gold must not breach for our near-term bullish scenario to play out…the CDNX was quite weak at the start this morning, testing 1,500 which wasn’t unexpected, but is now at 1,510, off 9 points on the day…Seafield Resources (SFF, TSX-V) is very strong again this morning, trading 1.8 million shares already and hitting a new 52-week high of 35.5 cents…Seafield is currently trading at 34.5 which is a nearly 500% gain from when we first initiated coverage on this stock at just 6 cents last summer…our outlook on Seafield remains very positive as the company draws closer to finalizing its Colombian gold property acquisitions and proceeding with exploration…a double or triple from here is entirely possible in the coming months…however, traders may wish to consider locking in profits as the stock is clearly now overbought on a short-term basis and could react soon, though likely not below the upper ’20’s…some cheap private placement stock comes free trading next week as well which could put some downward pressure on the stock…the possibility of another Seafield private placement in the 30 to 40 cent area also exists in our view, as we have previously suggested, if for no other reason than strategic “positioning” purposes…Gold Bullion Development (GBB, TSX-V) is up half a penny to 11 cents this morning on heavy volume, while Kent Exploration (KEX, TSX-V) – another favorite of ours – continues to look incredibly attractive at 15 cents…Kent is oversold and due for a very sharp rebound, while Gold Bullion should have more assay results soon from Granada, a property along the prolific “Cadillac Trend” that we believe has excellent potential for a major discovery…

Gold is off $5.00 an ounce this morning to $1,099 as of 8:45 am Pacific time…as expected, gold recently broke out of its bullish falling wedge pattern but has since pulled back and appears to be consolidating and gearing up for a more sustained and vigorous advance…technically, the key here is that gold does not fall back below that falling wedge line which it is now trading above…that means we want to see gold hold at approximately $1,085 or better…a reversal in the CDNX’s 20-day moving average is imminent – an important development which should occur by tomorrow – and we believe what the Venture is signaling is a sharp advance in gold and a strong overall precious metals market in the month of March…Gold Bullion Development (GBB, TSX-V) is holding firm this morning, up half a penny to 11 cents….Gold Bullion’s chart is definitely pointing to higher prices and an eventual breakout through resistance at 12 and 12.5 cents…more assay results from Granada are likely just around the corner, given the consistent news stream we’ve had with GBB over the past month, and what we’re looking for obviously is continued expansion of this deposit and similarities to Osisko’s early results from Canadian Malartic…the last batch of assay results from Granada was better than the first, so we hope the next set is even better than the second and can start to paint a really good picture of the blue sky potential of this property…Seafield Resources (SFF, TSX-V) is strong this morning at 28 cents as M Partners continues to gobble up stock…the technical picture with Kent Exploration (KEX, TSX-V) has improved tremendously and this stock is clearly an immediate buy with the potential for a short-term 50% move at least…the fundamentals support that view as Kent will very soon be commencing drill programs at its Australian and New Zealand gold properties…we are particularly bullish on the Alexander River Property in New Zealand which already has a pre-NI-43-101 compliant estimate of 640,000 ounces of gold…Kent is a “steal” at current prices and is one of the best-managed junior exploration companies we’ve ever come across…the Quebec shale gas play is really heating up and investors should be reminded that Greencastle Resources (VGN, TSX-V) holds oil and gas exploration permits of nearly 7,000 hectares in the Longueuil/St.-Hulbert area east of Montreal in the St. Lawrence Lowlands…their permits are located southwest along trend from the Utica Shale gas discovery by Forest Oil Corporation in 2008…

The markets are down again a bit this morning, weakness that we are buying into and in advance of what we believe will be a sharp upward move at month end and into March…gold is off $7.90 an ounce to $1,105 as of 8:30 am Pacific time while the CDNX has dropped 11 points to 1,517, just above its rising 50-day moving average…significant accumulation is taking place in Gold Bullion Development Corporation (GBB, TSX-V) …a chart tells a thousand words, and right now the GBB chart is telling us this stock wants to go higher, perhaps a lot higher…all of its moving averages are in bullish alignment, a technical overbought condition (based on Stochastics and RSI) from January has cleansed itself, and a recent reversal in the 20-day moving average clearly points the arrow north with this stock…of the six companies in the BullMarketRun.com portfolio, we can say with a high degree of confidence this morning that GBB has the best chance to make the biggest move in the shortest space of time…more drill results are pending from Granada and our theory is very simple – the more drilling and the more drill results the better because we are convinced this property has the goods, based on the half dozen assays in so far and all the historical information (including nearly 500 holes) on Granada and the region in general…of huge significance is the shallowness of the mineralization Gold Bullion is encountering at Granada, unusual for Cadillac Trend deposits…of course that’s what exists at Osisko’s Canadian Malartic Deposit 40 miles to the east…these are still very early days for Gold Bullion, but the risk-reward ratio at 10 or 11 cents is extremely attractive and compelling…Seafield Resources (SFF, TSX-V) dropped to 23 cents this morning and has since rebounded to 27, showing how important it is to buy into weakness…we believe Seafield will finally “bust out” sometime next month…
we’re also keeping a very close eye on Kent Exploration (KEX, TSX-V) which could firm up very quickly by the end of the week as drilling is very close to getting underway at Kent’s projects in Australia and New Zealand…

Gold jumped as high as $1,130 overnight but has pulled back this morning and as of 8:25 a.m. Pacific time is down $6 on the day to $1,111…in our weekend report we identified $1,130 as a key technical area for gold to break through…we believe it’s only a matter of time – likely within a week or so – before that happens…the CDNX is unchanged at 1,534…the overall markets are weakening a little bit as we write this…as we stated in our Sunday report, any pullback early this week should be embraced as a buying opportunity…technical patterns suggest a strong finish to the month and a robust March…Gold Bullion Development (GBB, TSX-V) is showing continued strength this morning with firm bids and its bullish chart suggests the news from Granada is only going to get better…the potential for a major discovery at Granada is very real…at BullMarketRun.com, we are tremendously excited and encouraged by the geology of this property which was a former producer in the 1930’s…Gold Bullion President/CEO Frank Basa has a keen understanding of the structural controls at Granada and how this could develop into a very significant bulk tonnage, open-pit deposit or series of deposits…these are early days, of course, but this story could really start to take off in a hurry if upcoming assay results (19 holes are pending) clearly demonstrate the potential we’ve been speculating about…another bulk tonnage situation we’re very excited about is Richfield Ventures (RVC, TSX-V) which is holding steady this morning at $1.54, up a penny…we’ll be reporting more on Richfield in the week ahead…we suggest investors do some due diligence on Happy Creek Minerals Ltd. (HPY, TSX-V) which is currently trading at 30 cents…

CDNX

We declared the recent correction over in the CDNX last Sunday, and that proved to be the right call as the market was all up all four trading days this past week and broke through the 1,500 mark again. The Venture closed Friday, February 19, at 1,532, its ninth winning session out of 10 after a 62-point decline February 4. This market is up 7% since the low of 1,429 February 5, and appears ready to make an assault on the January high of 1,629. We expect the CDNX’s 20-day moving average will turn positive this coming week, so a strong finish to the month is likely along with a potentially powerful move as March gets underway. Any minor pullback early this week in the CDNX, if it should occur, has to be embraced as a buying opportunity. The rising 50-day moving average is currently at 1,515.

The bullish divergence between the CDNX, gold and the TSX Gold Index since early December (the CDNX is up 5% while gold is off 8% and the Gold Index is down 18%) has convinced us over the past couple of months that the next big move in commodities is up, not down, and that the Venture is ultimately headed to between 1,950 and 2,350. Indeed, gold is showing much improved technical strength at the moment (commercial traders have also substantially reduced their net short positions) and appears to be on the verge of a significant breakout which will occur on a move through $1,130. The buillish falling wedge pattern in gold is not good news for bears, and neither is the fact that gold’s important 30-day moving average is close to ending its recent decline. And as our most reliable indicator, the CDNX seems to be telling us that gold will likely challenge its early December, 2009, all-time high of $1,225 very soon, probably next month.

Crude oil and other commodities have gained new strength as well, again a development telegraphed by the action in the CDNX.

Bottom line: We’re anticipating a very strong CDNX over the next month at least, propelled by higher gold and silver prices and a strong overall commodities market.

The BullMarketRun Portfolio – A Strong Week

Gold Bullion Development Corporation (GBB, TSX-V)

We’ve been following Gold Bullion very closely over the past couple of months and initiated coverage on this stock at 7 cents around mid-December…the gain since then is 57% with GBB closing Friday at 11 cents on strong volume of nearly 700,000 shares…both the technicals and the fundamentals with GBB are incredibly bullish…we do not make this statement lightly – based on drill results to date as well as historical information, Gold Bullion in our view is sitting on a potentially very large (multi-million ounce) open-pit, bulk tonnage deposit at its Granada Gold Property 40 miles to the west of Osisko’s massive Canadian Malartic Deposit…assay results on 19 of 25 holes drilled at Granada in December and January are still pending…mineralization is open in all directions and keep in mind the company has explored less than 10% of its 2 x 7 kilometre land package…the shallowness of the mineralization at Granada is both impressive and unusual for this region…we’ll be analyzing Gold Bullion in much more detail following the release of the next set of assays which could come at any point now…

Seafield Resources (SFF, TSX-V)

Major accumulation continues in Seafield which jumped 3.5 cents Friday on a whopping 2.2 million shares…the stock was up 5 cents on the week…the house positions are interesting and we’ll be commenting more about that in the coming week…the kind of accumulation we’ve seen in Seafield is telling us that this stock is ultimately headed much higher as we’ve been predicting all along (we initiated coverage on Seafield last summer at 6 cents)…we believe the company is close to announcing its Colombian property acquisitions, though the delay on that has been frustrating…

Kent Exploration (KEX, TSX-V)

Kent showed strength this past week as well, jumping 2 cents to 17…with drill programs underway soon at Gnaweeda in Australia and Alexander River in New Zealand, we have every reason to believe Kent will climb back into the ’20’s very soon and quite possibly stage the breakout that we have been anticipating…this is an extremely well-run junior resource company with a busy agenda but a clear focus…Kent’s current market cap is only $6.3 million, offering plenty of upside potential…a turnaround in the stock’s 20-day moving average should occur by the end of this coming week, signaling a new uptrend…March should be a solid month for this stock…

Greencastle Resources (VGN, TSX-V)

Greencastle was up a penny on the week to 16 cents but on fairly light volume on less than 100,000 shares each day…Greencastle and its partners recently started testing the first of two wells that were drilled at Cabri in southwestern Saskatchewan, so news from there should be coming fairly soon…this is one of those stocks to simply tuck away and be patient with…Greencastle has much going for it, including promising gold properties in Nevada as well as monthly cash flow from its Primate oil royalties, and we believe the land package it has assembled in southwestern Saskatchewan could very easily result in the discovery of several or even numerous small producing oil wells with total production of 1,000 or more bpd…

Richfield Ventures (RVC, TSX-V)

Richfield enjoyed a big week, climbing 42 cents to $1.53…the company recently announced it’ll be starting a 25,000 metre drill program at its Blackwater Project in the Interior of British Columbia in early April…we have stated the case here repeatedly that Blackwater is shaping up as a world class bulk tonnage deposit with potentially several million ounces…a lot of the cheap Richfield private placement stock that became free trading in mid-January and drove down Richfield’s share price has now been absorbed by the market…any pullback in Richfield this coming week should be viewed as a buying opportunity as we anticipate this stock could make a massive move this spring…we’ll have more on Richfield very soon…

Colombian Mines Corporation (CMJ, TSX-V)

Colombian Mines, which we first recommend at 60 cents in early December, jumped another 11 cents this past week to $1.08…the company has a tremendous portfolio of exploration projects in Colombia and has also announced plans for a private placement financing at 95 cents with a warrant to raise approximately $3 million (we believe this will be over-subscribed)…for those who have not yet jumped in on CMJ, we do view the $1.00 level as a very attractive entry point…