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November 12, 2014

BMR Morning Market Musings…

Gold has traded between $1,160 and $1,170 so far today…as of 8:30 am Pacific, bullion is up $1 an ounce at $1,164…Silver is off a nickel at $15.65…Copper is unchanged at $3.06…Crude Oil has slipped 35 cents to $77.59 while the U.S. Dollar Index (see updated chart below) is up slightly at 87.60

Swiss regulator FINMA said it found a “clear attempt” to manipulate precious metals benchmarks during its investigation into precious metals and FX trading at UBS…

Six straight days of outflows in SPDR Gold Trust, the world’s top Gold-backed EFT, despite last Friday’s big rally and another significant move to the upside yesterday…current holdings now stand at 724.46 tonnes, down 0.12% yesterday to a fresh 6-year low…the ETF’s Gold hoard has decreased nearly 10% this year and it’s off 46% from the December 2012 all-time record…that all-time high proved to be a bearish sign – Gold broke down decisively a few months later…

Could Gold get another lift from the escalating situation in the Ukraine?…NATO’s top commander says Russia is reinforcing its bases in disputed Crimea, but there is no clear assessment of whether that includes deployment of nuclear weapons…U.S. Gen. Philip Breedlove said yesterday that Russian forces “capable of being nuclear” are being moved to the Crimean Peninsula, but NATO doesn’t know if nuclear weapons are actually in place…Breedlove also told news agencies at a NATO base near Naples that about 8 Russian battalion task groups have been sighted along the border between Ukraine and Russia…Russian-backed separatists have been fighting Ukrainian soldiers in eastern Ukraine despite a cease-fire proclaimed weeks ago…

Meanwhile, the U.N. Security Council is preparing to hold another emergency session on Ukraine amid worries about a renewal of full-scale conflict in the rebel-held east…the Security Council has met well over a dozen times since the crisis began early this year but of course Russia has veto power…

President Obama’s Emissions “Deal” With China

President Barack Obama has announced that the U.S. has set a new goal to reduce emissions of greenhouse gases by between 26% and 28% over the next 11 years as part of a climate change agreement with China… the new target is a drastic increase from earlier in Obama’s presidency, when he pledged to cut emissions by 17% by 2020…by contrast, Obama’s counterpart, Xi Jinping, did not pledge any reductions by a specific date (our emphasis), but rather set a target for China’s emissions to peak by 2030, or earlier if possible…Xi also pledged to increase the share of energy that China will derive from sources other than fossil fuels…China’s emissions have grown in recent years due to the building of new coal plants…

Obama’s pledge is sure to encounter tough opposition from ascendant Republicans in Congress…incoming Senate Majority Leader Mitch McConnell, R-Ky, said in a statement, “This unrealistic plan, that the President would dump on his successor, would ensure higher utility rates and far fewer jobs.”

Republicans have picked up another Senate seat…Dan Sullivan was declared the winner of Alaska’s Senate race early today, a week after voting ended, as the Associated Press said he held an insurmountable lead over one-term Democratic Sen. Mark Begich…Sullivan’s win brings the Republican majority in the next Senate to 53 seats, with 1 race, in Louisiana, still to be settled in a runoff…

Today’s Equity Markets

Asia

Japan’s Nikkei average gained 73 points overnight to close at 17197, hitting levels unseen since October 2007

China’s Shanghai Composite, meanwhile, jumped another 25 points to finish at 2494…Beijing’s move to open the Shanghai stock market to more foreign investors next week has fueled an unusual rally among China’s largest listed companies, which have long been out of favor and blamed for the market’s doldrums in recent years…the Shanghai is up more than 5% in the past month…

Europe

European markets were under pressure today with banking stocks leading declines after the announcement of regulatory penalties for the alleged manipulation of the foreign exchange markets…

Factory output across the 18 countries that share the euro only partly rebounded in September from the previous month’s slump, an indication that euro zone economic growth remained very modest in the third quarter…

The European Union’s statistics agency will release GDP figures for the euro zone on Friday…economists surveyed by The Wall Street Journal last week estimated those figures would show a paltry 0.1% quarter-to-quarter expansion, unchanged from the rate of growth posted in the second quarter…

North America

The Dow is down 7 points through the first 2 hours of trading…the TSX is up 29 points while the Venture, trying to gain some traction above resistance at 770, is flat at 772 as of 8:30 am Pacific…

U.S. Dollar Index Updated Chart

The trading crowd has jumped on the U.S. Dollar bandwagon in recent months…there are, of course, justifiable fundamental reasons for that including the diverging monetary policies between the Federal Reserve and its counterparts in Europe and Asia…based on both fundamental and technical factors, there’s every reason to believe the greenback is in a new bullish phase though eventually the Dollar Index will meet resistance at its long-term downtrend line in the mid 90‘s…

However – and this is positive for Gold – bullish sentiment regarding the dollar at the moment is at extreme levels (everyone seems to be on the same side of the fence) so at some point in the near future the greenback is going to have to digest its sharp gains since the summer and unwind temporarily overbought conditions…this process may already have started given the current divergence between RSI(14) and price on the 2.5-year weekly chart below…the +DI indicator appears to have peaked, and the near-vertical rise in the 50-day moving average (SMA) is not sustainable…

We’re looking for a temporary top in the Dollar Index in the high 80‘s – potentially, the Index could even marginally overshoot Fib. resistance at 88 – but the bullish trend at the moment is showing signs of weakening…one can’t predict the exact timing of a significant pullback, or the reasons why beyond technical factors, but it’s only a matter of time before Dollar bulls get knocked off stride, temporarily at least…

A drop in the Dollar Index, of course, would give some much-needed relief to the commodity sector and the Venture Exchange

USD152

Uranerz Enery Corp. (URZ, TSX)

Uranium stocks have been hot since last week – the Uranium spot price has been climbing significantly since August, due to several factors including a “restart” in Japan and the election last week of a Republican-controlled Congress in Washington, and TSX-listed Uranerz Energy Corp. (URZ, TSX) has certainly been one of the major beneficiaries…URZ soared 50% in just 6 sessions through yesterday…

Below is a 7-year monthly URZ chart…the bullish +DI crossover is the first since late last year when URZ made a run from a low of 84 cents to a high of $2.18 in early March…the 50-day SMA, currently at $1.20 (not shown on this chart), has reversed to the upside while the 100-day has flattened out around $1.28…the $1.35 area served as resistance since mid-July, so that area should provide strong support in the event of a healthy minor pullback to digest recent gains…as always, perform your own due diligence…

URZ is off 4 cents at $1.46 as of 8:30 am Pacific

URZ1

Garibaldi Resources Corp. (GGI, TSX-V) Update

There are several fundamental factors in Garibaldi Resources‘ (GGI, TSX-V) favor at the moment, not the least of which is an acceleration of the drill program at Rodadero where the Silver Eagle discovery is expanding while some very attractive targets are set to be drill-tested at Tarichi, 2.5-km to the southeast…the extent of the mineralized footprint at Rodadero, the high grades encountered at Silver Eagle through drilling so far, and the high Silver, Gold and base metal values found through sampling at numerous other targets suggest the possibility of a very robust epithermal system…producing mines surround Rodadero on all sides, so GGI is in the right neighborhood and has previously demonstrated its ability to unlock value in Mexico…

Technically, this updated 3-year weekly chart shows a continuation of a long-term uptrend that began in the summer of last year…a recent +DI crossover and a bullish “W” in the RSI(14) indicate a growing possibility of fresh strength during the second half of this month…

GGI is off 2 pennies at 21 cents as of 8:30 am Pacific

GGI76

GoldQuest Mining Corp. (GQC, TSX-V) Update

Patient bottom-fishers should keep an eye on GoldQuest Mining (GQC, TSX-V) going into the balance of the year…it has been a disappointing 2014 for GQC, but the company does have exceptional geological prospects in the Dominican Republic and enough cash ($8 million as of the end of June) to make another drilling discovery in 2015

GQC has been in a sharp downtrend since late June but has strong base support around 9 cents…RSI(14) has been trending higher recently despite the new 52-week low, a positive divergence…historically, GQC has experienced some incredible sudden moves to the upside on impressive drill hole results in the DR…the time to accumulate is during weak periods such as this…

GQC is up a penny at 11 cents as of 8:30 am Pacific

GQC120

Note:  John and Jon both hold share positions in GGI.

7 Comments

  1. DBV.v Doubleview Capital Corp. (TSX-V: DBV) Announces Proposed Non-brokered Private Placement Financing

    V.DBV | 13 minutes ago

    (via Thenewswire.ca)

    Vancouver, BC / TNW-ACCESSWIRE / November 12 2014 /Doubleview Capital Corp. (“Doubleview”) (TSX-V: DBV) announces a proposed non-brokered private placement of up to 1,666,666 units (“Units”) of Flow Through (“FT”) at a price of $0.18 per Unit and up to 1,333,333 units (“Units”) of Non-Flow Through (“NFT”) at a price of $0.15 per Unit for gross proceeds of up to $500,000 (the “Offering”). Each FT Unit will be comprised of one common share of Doubleview and one-half of one common share purchase warrant (“Warrant”), with each whole Warrant entitling the holder to purchase one additional common share at $0.25 per share for a period of two years from the date of issuance. Each NFT Unit will be comprised of one common share of Doubleview and one-half of one common share purchase warrant (“Warrant”), with each whole Warrant entitling the holder to purchase one additional common share at $0.20 per share for a period of two years from the date of issuance.

    Subject to TSX Venture Exchange approval, Doubleview may pay finders a fee of up to 7% of the gross proceeds of the private placement and issue finders share purchase warrants equal to 7% of the number of Units sold in the Offering. Each finder’s warrant will entitle the holder to acquire one common share of Doubleview at the unit price for a period of two years from the date of issuance.

    Proceeds from the Offering will be used by Doubleview for an additional drill program on the Hat Property, located in northwestern British Columbia, and for general working capital purposes.

    Closing of the Offering is subject to TSX Venture Exchange approval.

    About Doubleview Capital Corp.

    Doubleview Capital Corp. is a Canadian resource exploration and development company located in Vancouver British Columbia. Doubleview is a publicly trading company on TSX-Venture Exchange under TSX.V: DBV. ( OTC: DBLVF / FSE: A1W038 ) Doubleview identifies, acquires and finances quality precious and base metal exploration mining projects in North America and more specifically British Columbia, Canada. Doubleview increases shareholder value through strategic and quality Gold, Copper, and Silver projects acquisitions, and through advanced and state of the art exploration methods in the industry.

    Doubleview endeavours to increase the odds of exploration success and to mitigate investment risk through diversification. The recent, strategic property acquisitions have strengthened the Doubleview’s property portfolio of Gold, Silver and Copper exploration projects.

    On behalf of the Board of Directors,

    Farshad Shirvani, President & Chief Executive Officer

    For further information please contact:

    Doubleview Capital Corp.

    Suite 310, 675 West Hastings Street

    Vancouver, BC V6B 1N2

    Farshad Shirvani

    President & CEO

    T: (604) 678-9587

    E: corporate@doubleview.ca

    Forward-Looking Statements

    Information set forth in this news release contains forward-looking statements that are based on assumptions as of the date of this news release. These statements reflect management’s current estimates, beliefs, intentions and expectations. They are not guarantees of future performance. Doubleview cautions that all forward looking statements are inherently uncertain and that actual performance may be affected by a number of material factors, many of which are beyond Doubleview’s control. Such factors include, among other things: risks and uncertainties relating to Doubleview’s ability to complete the proposed private placement financing, implement its exploration program on the Hat Property, limited operating history and the need to comply with environmental and governmental regulations. Accordingly, actual and future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward looking information. Except as required under applicable securities legislation, Doubleview undertakes no obligation to publicly update or revise forward-looking information.

    NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

    Copyright (c) 2014 TheNewswire – All rights reserved.

    TheNewsWire
    November 12, 2014 – 9:15 AM EST

    Tags: INDUSTRIAL METALS & MINERALS

    Comment by zippy — November 12, 2014 @ 8:48 am

  2. DBV is making progress- now it’s time to close the financing and start drilling. Regarding BLO, that is one slick breathalyzer. They’re on track and pushing the project forward. Now if we can get some new investors on board to clean up the stock, watch out, this stock will fly.

    Comment by chris — November 12, 2014 @ 9:37 am

  3. GQC started mineral exploring in the Dominican Republic back in 2000. GQC assembled a great package of properties before anyone noticed how well mineralized the area was. GQC probably has the best portfolio of properties in the DR but unfortunately management just doesn’t seem to understand or care about the market side of the business. No retail audience, and institutional investors are not very interested in companies with such a small market cap. This creates a situation where the share price will drift much lower then it should at times. Hopefully the news flow picks up in the new year.

    Comment by Daniel — November 12, 2014 @ 11:31 am

  4. Another one of my favorite stocks – Theralase. Further studies confirming 100% cancer kill and immunity. Heavy volume today 3.2 million shares traded and finished up 15%

    Read at Kereport website…

    Comment by Dan — November 12, 2014 @ 2:06 pm

  5. Here is the latest video on the latest cancer kill and Immunity Response by Roger White of Theralase.

    Watch it at Youtube Website…

    Comment by Dan — November 12, 2014 @ 3:08 pm

  6. Regarding BLO – Today was the first day Cannabix had an opportunity to display their marijuana breathalyzer at the conference in Las Vegas and I am betting big investors and institutions will probably be buying tomorrow and Friday after having an opportunity to see the prototype first hand and the massive potential both for law enforcement space and in the workplace.

    Comment by Dan — November 12, 2014 @ 3:30 pm

  7. Thanks Dan!!

    Comment by Greg J. — November 12, 2014 @ 5:46 pm

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