February 11, 2010
Gold is up $9.00 an ounce to $1,079 as of 7:45 am Pacific time while the CDNX continues to go in the right direction, up 4 points so far this morning to 1,481…we have a growing sense that last Friday marked the end of the CDNX correction which chopped 200 points off this market (1,629 to 1,429) or 12%…further technical confirmation of that, however, is required, and the first important test will be a move past 1,500 on solid volume…Greencastle Resources (VGN, TSX-V) has come out with news on its drilling at Boggy Lake-Cabri in southwestern Saskatchewan with confirmation that it has hit some “zones” as testing begins on the first of two wells to determine if flow rates are economic…this will likely take several weeks…Greencastle has tremendous technical support at its 100-day moving average (.155) and we strongly urge our readers to do their due diligence on this situation and put at least some Greencastle in their portfolios with a six to 12 month time horizon…at current levels, traders and short term investors can likely flip VGN for a decent profit by the end of March…no need to chase…16 cents would be an ideal entry point…we believe Noront Resources (NOT, TSX-V) hit bottom recently at its 300-day moving average of $1.30…Noront is now at $1.47 and a terrific long-term investment in our view…
