Buy Signals In Junior Miners Flashing “Strong Buy”

It looks like after a long 3-yr drought, we may be in the early stages of a monster move in the junior mining shares.  The GDXJ junior index is up 35% YTD and 23.5% since June 1.  Doesn’t  seem like it, does it?

As you can see from the graph below, the junior miners have definitely rebounded off their 3-yr decline.  The graphs shows the RSI, MACD and On-balance-volume indicators.  The RSI and the MACD have been positively diverging from the GDXJ since March/April.  These are more “quiet” indications suggesting that smart money has been accumulating the sector.

It gets harder to “hide” when you apply the OBV on-balance-indicator, which is a “louder” indicator of big volume moving into the sector:

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It’s time to start picking your favorite stock plays.  Of course, there’s always the possibility that heavy intervention “mysteriously” tries to prevent a move, but right now the odds are in the favor of a big move.

It’s time to start buying into these stocks.  Some of the high-quality exploration stocks and emerging producers will move up several multiples from their current prices.  I have some of my favorite plays (we own all of them in the fund I manage) available for you to look into here:  IRD Research Reports.

Or you can click on this pic:

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6 thoughts on “Buy Signals In Junior Miners Flashing “Strong Buy”

  1. The increase YTD is due to the low at the end of Dec 2013 extending
    into Jan. If you look at the YoY price of GDX/GDXJ, right now the
    price is slightly down. I agree that the low is in, but over the last year
    I would say that the price is moving sideways, not going up.
    However, now is probably the time to buy before it really starts to
    move up. I really enjoy reading your website. Enjoy the beautiful day
    here in Denver.

    1. it’s been moving sideways since early July while gold and silver pulled back. That’s a positive divergence that is telling us cash is moving into the miners. Friggin rain clouds moving in already. This summer has been wet almost everyday. You enjoy the day as well!

    2. The end of last year is exactly when the last of the hot money was out of gold thanks to some tax loss selling. That $1200 support is something fierce and will likely never be broken. EVER.

    1. Nice. Arrowhead is a great track. Red Rocks always rocks. We got lucky – rain clouds moved in Sat but it never rained in Denver. Today was spectacular.

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