May 19, 2010
We are travelling this morning so this update is being posted at 5:45 am Pacific time prior to the market open…Gold has been weak overnight and is currently down $14 an ounce to $1,208…Gold should find strong technical support at $1,200 as we have previously indicated…the CDNX will be looking to snap a 4-session losing streak today…the one positive sign over the past 4 trading days has been the low volume…nonetheless, the technical picture has weakened with the CDNX but it’s premature to say we’re in the midst of a major correction…this market does have some strong support levels to hold it up…a great exploration story can always buck the market trend and that’s certainly the case with Gold Bullion Development (GBB, TSX-V) which broke out, as predicted, to a new all-time high yesterday of 45 cents…the stock is now up an incredible 844% since BMR introduced it in December at just 7 cents…interestingly, insiders haven’t sold a single share and Jordan Capital – the earliest player in this run – increased their net position in GBB last week by approximately 20% with significant buying in the mid-30’s…GBB is definitely one to hold for the long haul…
