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BMR Morning Market Musings... - BullMarketRun.com

August 18, 2014

BMR Morning Market Musings…

Gold has traded between $1,295 and $1,305 so far today…as of 7:30 am Pacific, bullion is down $7 an ounce at $1,298…Silver is up 7 cents at $19.63 (see updated Silver charts below)…Copper is flat at $3.13…Crude Oil has retreated $1.17 a barrel to $96.18 while the U.S. Dollar Index has added more than one-tenth of a point to 81.58…

The $1,280-$1,300 range is providing excellent support for Gold while a critical resistance band exists between $1,320 and $1,330…hedge funds and money managers have boosted their bullish bets on Gold futures and options for the first time in three weeks, data from the Commodity Futures Trading Commission showed on Friday…

Russia’s Foreign Ministry said today “certain progress” was achieved during talks between Russia, Germany, France and Ukraine in Berlin on Sunday about ways to end the military conflict in eastern Ukraine…

It’ll be interesting to see how Gold reacts during this big week for economic numbers as well as appearances by Federal Reserve officials…on Friday, Fed Chairwoman Janet Yellen will give a speech at the annual central bankers’ summit in Jackson Hole, Wyoming…European Central Bank President Mario Draghi will also speak at the event, which investors will be watching given last week’s poor European economic data…

In his “Investor Alert” over the weekend at www.usfunds.com, Frank Holmes noted that “China and Russia, which are already making bi-lateral agreements to trade their currencies and bypass the U.S. dollar, are progressing to challenge the dollar hegemony in world trade. Interestingly, the two countries hold the smallest proportions of their total foreign-currency reserves in Gold. This may explain why China, and especially Russia have made significant investments to increase domestic Gold production. Russia is likely to overcome Australia as the world’s second-largest producer of Gold.  The positive side is that Gold produced will be purchased by their central banks and not released into the open market.”

Today’s Equity Markets

China

China’s Shanghai Composite gained 13 points overnight to close at 2239…average new home prices in China’s 70 major cities dropped 0.9% in July from June…this was the third consecutive monthly drop following June’s 0.5% drop, according to Reuters’ calculations from official data published today…the HSBC China Manufacturing PMI is set to come out Wednesday…economists’ consensus places the index at 51.5, signaling expansion in Chinese manufacturing…a strong PMI reading could serve to prop up base metals that have been on the decline recently due to weaker growth outlooks…

Japan’s Nikkei average climbed 4 points to close at 15318…

Europe

European markets are up strongly in late trading overseas…

North America

The Dow is up 139 points through the first hour of trading…sentiment has been given a boost from M&A activity…the Nasdaq, meanwhile, has climbed to a 13-year high of 4500…

The TSX has gained 18 points while the Venture is off 2 points at 994…

Venture 3-Year Weekly Chart

The Venture 3-year weekly chart shows RSI(2) at oversold levels – 11% – not seen since the May low of 969…for traders, the time to be cautious with this market is when RSI(2) surges past 90%…the time to be bullish is when it drops to levels such as now and below 10%…given this indicator plus the overall tremendous chart and Fib. support from 970 through the 980’s, the Venture’s upside potential far exceeds its downside risk as this third quarter continues…

CDNX297

Balmoral Resources Ltd. (BAR, TSX) Drills 54 Meters of 1.62% Ni At Grasset

Balmoral Resources (BAR, TSX) has released very encouraging Nickel-Copper-PGE intercepts from each of the first eight holes targeting its recent Horizon 3 discovery on the company’s wholly owned Grasset property in Quebec…all eight holes, which fan out from discovery hole GR-14-25, intersected broad zones of impressive mineralization, confirming the discovery of a high-grade Ni-Cu-PGE sulphide zone within the Grasset Ultramafic Complex…

Results were highlighted by holes GR-14-28 and GR-14-33, the latter being the deepest of the initial eight follow-up holes…hole GR-14-28 returned a 102.86-metre intercept grading 1.03% Ni, 0.11% Cu, 0.22 g/t Pt and 0.53 g/t Pd from the bedrock collar…this included a higher-grade section almost 9 m wider than the discovery hole at 54.08 m grading 1.62% Ni, 0.18% Cu, 0.36 g/t Pt and 0.88 g/t Pd

GR-14-33 returned a similarly broad 100-m intercept (between 141.32 m and 241.27 m) grading 0.95% Ni, 0.11% Cu, 0.21 g/t Pt and 0.48 g/t Pd which includes a high-grade section of 9.80 m grading 2.73% Ni, 0.33% Cu, 0.68 g/t Pt, 1.64 g/t Pd and 0.11 g/t Au between 190.47 m and 200.27 m…

Drilling continues at Grasset, and at the company’s Martiniere Gold Project 40 km to the west…BAR has held its gains through the first hour of trading, a very positive sign, and is is up 9 cents at $1.91 as of 7:30 am Pacific

Garibaldi Resources Corp. (GGI, TSX-V) Gears Up at Grizzly While Drilling of Silver Eagle Discovery Continues

As Garibaldi Resources (GGI, TSX-V) expands its Silver Eagle discovery at the very promising Rodadero Project in central Sonora State, months of intense activity are about to translate into first-ever drilling at the Grizzly Project in the prolific Sheslay district of northwest British Columbia…Garibaldi has the deepest roots in the district as they’ve been systematically advancing the Grizzly since acquiring that very large land package (now 262 sq. km) in 2006…

GGI President and CEO Steve Regoci and his team are approaching the Grizzly with a high degree of confidence given what they’ve learned over the past 12 months in particular, plus the fact that some of the same methodologies that have translated into drilling success in Mexico are being applied to the Grizzly and the Sheslay district…

Click on the arrow below to view the nearly 2-minute excerpt of Part 3 of our exclusive interview with Regoci…more as the week continues…

Pure Gold Mining (PGM, TSX-V) Update

We initially brought Pure Gold Mining (PGM, TSX-V) to our readers’ attention July 9 when it trading at 41 cents…since then, PGM has climbed approximately 20% and appears poised for a strong second half of 2014…

Pure Gold, formerly Laurentian Goldfields, recently consolidated its position in the prolific Red Lake district with the acquisitions of the Madsen Property and the adjacent Newman-Madsen Property…together, these properties make up a 50 sq. km land package of contiguous, primarily patented ground, collectively known as the Madsen Gold Project…Pure Gold now holds the third largest land package in the Red Lake region which includes two past-producing mines, existing mine infrastructure, current mineral resources, and multiple highly prospective exploration targets in a geological setting analogous to other modern high-grade discoveries in the Red Lake region…

PGM, which has just over 100 million shares outstanding, is well-funded and recently announced the start of a 9,000-m drill program at Madsen…drilling is designed to test and expand the current mineral resource, while concurrently testing high-grade, 8 zone-style mineralization targets developed through continuing consolidation and evaluation of the large historic database…

Technically, as shown in this weekly chart, the trend is clearly bullish and a breakout above 50 cents would imply a potential test of the measured Fib. resistance level as indicated…

PGM is up a penny at 48.5 cents as of 7:30 am Pacific…as always, perform your own due diligence…

PGM1

Silver Short-Term Chart Update 

This 6-month daily chart shows how extreme RSI(2) conditions in Silver persisted for most of June with a necessary and healthy unwinding of that overbought situation in recent weeks…in fact, RSI(2) is now in oversold territory at 8%…a strong Fib. support band exists between $19.50 and $20.00, so further consolidation within this level can be expected before the metal reverses the downtrend that started in early-mid July…

SILVER189

Silver Long-Term Chart Update

Silver has broken out above one important downtrend line which should now provide strong support…RSI(2) closed last week at 38% – notice the higher lows in this indicator over the past year…

Also note how the SS is moving up from a low bullish “W” while the ADX indicator shows the growing potential for a bullish +DI/-DI crossover this quarter…bottom line – Silver looks highly attractive around the $20 level…

SILVER190

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

 

14 Comments

  1. What’s your opinion on Kootenay (KTN) ? At 31 cents this seems to be quite under valued. Especially since they completed a $ 4.5 m private placement with Agnico Eagle Mines .

    regards,
    Bert

    Comment by Bert — August 18, 2014 @ 9:37 am

  2. Bert, I’ve followed ktn for many years and I agree they should not be anywhere near .31. If ggi is trading at .27 ktn should be well over a buck and more like it was a few years ago, eagle will at one point take them over.

    Comment by Jessie — August 18, 2014 @ 10:15 am

  3. Looks like this May be a good entry point for pgx. Results should be real soon I would thnk.

    Comment by Tombc — August 18, 2014 @ 4:53 pm

  4. ‘Ago’ (Aurcrest Gold) announced drilling today, results expected mid September.

    Comment by Paul — August 18, 2014 @ 5:02 pm

  5. Nothing to suggest pxa is a buy of any kind, financing still not closed and results need to be shown. If it’s such a diamond in the rough why is the financing still not closed and why is the stock losing support. It easy to get caught up
    In the hype by a few that can talk the talk but be careful, hopefully it works out for you guys!

    Comment by Jessie — August 18, 2014 @ 5:15 pm

  6. Jessie, so why not short the stock if you think it’s losing support?? As far as the financing goes, its just about done.

    Results from first 2 holes will be released as soon as they are received from lab, this week. Watch this puppy take off cowboy!! I dont think you’ve done your DueDilly on PXA because if you, I’m sure you you would be loading up at these levelsy. Don’t miss it!!!

    Comment by Jeff — August 18, 2014 @ 6:54 pm

  7. Sorry Jeff I don’t short penny stocks, makes no sense .

    Comment by Jessie — August 18, 2014 @ 7:16 pm

  8. Thanks BMR for the GGI interview. Steve certainly sounds very positive about the Grizzly. The way he talks suggest that they have a very good idea of the geology of the area without having yet drilled any holes. His comment regarding ”high gold values” is interesting, as DBV’s results also suggest good gold deposit in the area. I’m looking forward to more exerts and also hoping for a PR from GGI giving details of a drilling program.

    Comment by Tom — August 19, 2014 @ 1:24 am

  9. OK Jessie, I don’t either. Have you done your DueDilly on PXA yet? If not, why not eh?

    Comment by Jeff — August 19, 2014 @ 1:03 pm

  10. Jessie, I HOPE you were smart enough to get a position in PXA. just saying ;-)))

    Comment by Jeff — August 19, 2014 @ 11:13 pm

  11. Guys, out of respect for the BMR board, can you take your personal sniping elsewhere please e.g. Stockhouse. This BMR site has integrity and concentrates on important matters that the BMR guys feel worthy of bringing to our attention. It is a useful source of information. Stock pumping and petty squabbling amongst participants brings down the overall quality of the site IMO. Thanks.

    Comment by Tom UK — August 20, 2014 @ 3:15 am

  12. Tom my discussions with Jeff have been cordial and respectful. BMR , from my understanding is to share opinions and thoughts, which I believe we have done so. If BMR wants us not to post they can let us know. Jeff today’s pxa news does not bode well, delays on results suggest the first few holes were not what was expected, now expecting results in sept, more dilution at a lower price.

    Comment by Jessie — August 20, 2014 @ 6:49 am

  13. Jeff, looks like your calenderjj has sold out, be careful with your pxa. It moved fast on hype and some made some good coin but the delays, the lack of closing the pp, the lack of releasing the drill holes first if they were anticipated to be as good as some expect and then doing a pp, raises a bunch of red flags, good luck and be cautious!

    Comment by Jessie — August 20, 2014 @ 9:06 am

  14. Thanks Jessie but I think your turning a positive into a negative, that is, they announced that their drilling deeper holes, they added two additional holes to the program, announced another small PP all good news for me.

    Look for a company review report coming out Monday!!!

    Comment by Jeff — August 21, 2014 @ 1:54 pm

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