May 26, 2010
Gold is surging again this morning, up $13 an ounce to $1,214 as of 8:15 am Pacific time…the CDNX correction which began May 3 is now officially over in BMR’s view…the market bottomed at 1393 last Friday, finding strong support around 1400 where it was supported in December of last year and again in February…the correction occured over 15 trading days and amounted to 295 points or 17.5%, almost identical to the last “normal” correction with the CDNX in early January, 2008…the CDNX is up 31 points to 1481 this morning…given the market turnaround, Gold Bullion Development (GBB, TSX-V) is an immediate buy as it can be expected to significantly outperform the market as it has done since early March…new all-time highs are likely just around the corner with GBB based on technical and fundamental factors…Gold Bullion is currently up a penny to 39.5 cents…
