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Picture 1: Junior Gold Stocks Bull Analog
This updated analog chart includes our #2 index which we unveiled in Saturday's update. (The update included a full list of companies in both indexes.
The #2 index has been running ahead of the main index since last summer. Ultimately, we will have to rebalance our index at least once a year so it keeps up with the historical analogs.
Late Saturday we emailed subscribers TDG #504, a 30-page update. Below is a snippet from our page 1 summary:
Gold cleared $1220 and nearly hit $1250 before pulling back. Demand has returned (GLD which has added 37 tonnes in the past 8 days) and the net speculative position certainly has room to increase if sentiment turns more bullish. Aside from $1250, the next upside target is the 200-dma at $1266. Silver closed the week up 2.6% to $17.93. It figures to test resistance at $18.50-$18.75.
Although the US$ index rallied this week, Gold/FC gained 2% and Gold/30-year bond brokeout to a 2-year high. Gold in real terms looks healthy and if that remains so into spring and summer then it is a good sign for the sector.
Turning back to the stocks, a very brief (3-4 more days) correction or consolidation is possible before another, final push higher. The price action from last Tuesday to Thursday was the first sign of distribution (selling) which should increase if and when miners reach higher levels and stiffer resistance. The GDX advance/decline line remains strong and suggests GDX can reach $28. The bullish percentage index is at 61% so there is more room for the sector to
rally. The next upside targets are GDX $27-$28 and GDXJ $46.
If you are looking for nano-caps, we've covered a handful of them in recent weeks. If you are looking for the lowest risk juniors, we have a producer watch list and we noted in TDG #503 two lower risk juniors worth buying now. Most of our coverage is on the in-between companies that fit somewhere between a $50M-$200M market cap. Since December we have bought 5 of those sized companies and the positions are up an average of ~60%.
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Jordan focuses nearly exclusively on the gold sector and in my opinion does a good job either being right, or getting right when adjustment is needed. He moves forward without hype, bias or ego.
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Weekly updates are sent on Saturdays while flash updates are sent when we make a trade. Reports are sent sporadically. Upon signup you receive all recent reports and updates. Unlike most other editors, we answer subscriber questions.
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Disclaimer: This newsletter is intended for informational and educational purposes only and should not be considered
personalized and individualized investment advice. Investment in the precious metals sector contains significant risks. You should consult with an investment advisor and do your own due diligence before making any investment decisions. This email may contain certain forward looking statements which are subject to risks, uncertainties and a multitude of factors that can cause results and outcomes to differ materially from those discussed herein.
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