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October 22, 2013

A Picture Says It All…

The Venture Exchange is looking stronger now technically than it has at any point since the bear market began in the spring of 2011, and below is a 3-year weekly chart that demonstrates that.  The Venture today confirmed a breakout above important resistance at 955, surging 12 points to close at 972 – a 6-month high – on the best volume in 34 sessions.  Significantly, a breakout has also been confirmed above a down trendline in place since 2011 as shown in John’s 3-year weekly chart.

A rising tide will not lift all boats.  Stick with the companies that have the working capital, the expertise (management and geological), the right properties in the right areas, attractive share structures, and the drive to succeed both on the ground and in the market.

6 Comments

  1. THANKS FOR THE ‘EXTRA’ COVERAGE TONITE! APPRECIATE IT GUYS! THIS IS AN AMAZING GRAPH! LET’S HOPE COMPANIES FINALLY STARTING PUT OUT NEWS RELEASES,ETC TO GET INTEREST BACK IN THE MARKET!

    Comment by STEVEN1 — October 22, 2013 @ 5:12 pm

  2. Jon – The Venture today confirmed a breakout above important resistance at 955

    Bert – Although i torment you every once in awhile about charting, i do feel
    comfortable in responding to a charting matter. As noted above, you noted
    the Venture confirmed a breakout above resistance at 955. Yesterday you
    noted stiff resistance at 970, shouldn’t you have mentioned that we actually
    traded & closed above 970 & now may have clear sailing for awhile. Something
    else i would like to point out, we closed at the high for the day, very
    important. By the way, i seen the resistance at 969.05, every tick counts.
    11:50 Nfld time, Gold down 1.30.. Good night ! R !

    Comment by Bert — October 22, 2013 @ 6:21 pm

  3. Bert, yes, the Index closed above resistance at 970 today, but technically this needs to be “confirmed” as far as an official breakout above 970 goes. As John’s chart this morning pointed out, the breakout above 955 needed to be confirmed and today it was. As it stands now, new support is at 955. With the 100-day SMA also having reversed to the upside, combined with a breakout above the 2+ year down trendline, I don’t think there’s any doubt the Index is headed significantly higher from here.

    Comment by Jon - BMR — October 22, 2013 @ 6:44 pm

  4. Palladium looks ready to bust out of a year long consolidation…should be the first precious metal to reassert a new bull market in the metals. Exciting times ahead in this space, a lot of money should come back in once we’re back in a bull market.

    Comment by Justin — October 22, 2013 @ 7:33 pm

  5. Re: “Once we’re back in a bull market”. Bull markets and bear markets are often underway or finished for significant periods before most investors even recognize that to be the case. Is it possible the Venture bear market ended in late June and a new bull market began at that time? Some months down the road, that could be the consensus for all we know. This is different than any of the rallies we’ve seen since the bear market started in March, 2011. You can see that in John’s chart tonight. A couple of other notes, things we’ve pointed out the last couple of months. Even on some big down days in Gold since August – probably half a dozen down days where bullion dropped at least $20 an ounce – the Venture hardly budged. Completely different behavior by the Venture than what we’ve seen over the last couple of years. Also, the U.S. Dollar Index broke a 2.5-year uptrend on a weekly chart a few weeks ago…..the Venture tends to move in the opposite direction of the main trend of the greenback….I suspect we could be on the verge of a big move to the upside in Gold that may surprise a lot of investors….

    Comment by Jon - BMR — October 22, 2013 @ 7:42 pm

  6. I def agree Jon, the bear market in gold looks more and more like it ended in June. You’re right about the way the Venture has behaved since August, I’ve been noticing that. I didn’t like the way many of the major mining shares made a lower low in October, but also you had a big divergence in the stronger mining names staying well above the June low, and even staying close to 6-month highs. Alamos and Franco-Nevada are two prime examples. Both are way off their lows and about to make new highs.

    Fortunately we’re still in inning 1 or maybe inning 2 at the latest of this new gold bull. Contrast that with the U.S. stock markets where people are only finally starting to get bullish, yet we’re now 4 years into a bull market there and much closer to a top. We’re maybe in inning 7 or 8 of that bull market. Huge money is going to come running into this new bull market as it flees the mature bull markets where gains will be much harder to come by.

    Comment by Justin — October 22, 2013 @ 7:58 pm

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