May 21, 2010
Gold is down $4 an ounce to $1,179 as of 8 am Pacific time…the action in the Venture Exchange this morning suggests a bounce in the markets is close at hand…the Venture dropped as low as 1393 right off the bat this morning but buyers quickly jumped in and drove it back above 1400…the CDNX is currently up 3 points now to 1425 while the Dow and the TSX are still slightly in negative territory…today has the makings, therefore, of the “hammer reversal” our technical analyst was anticipating in his Wednesday report…basically, we’re looking for a bottom on the CDNX anywhere between 1200 and 1400…in five major corrections between 2004 and 2008 (excluding the crash of ‘08), the average CDNX decline was 23% over an an average time period of 26 trading days…the current correction has sent this market down 17.5% over 15 sessions…there could be more to go on the downside after a bounce up…it’s important to understand however that this correction is NOT a repeat of the 2008 crash and is merely a normal CDNX sharp pullback within a powerful ongoing bull market…Gold Bullion Development (GBB, TSX-V) fell as low as 35.5 cents this morning before recovering…GBB is currently at 38.5 cents, down half a penny…the money-making strategy with GBB can be summed up in three simple words – ACCUMULATE ON WEAKNESS…
