There is a lot to like about the chart below for a bottom feeder. A 62% Fib of the entire bull market out of 2008’s destruction, with long term support at that Fib, along with the most over sold RSI since 2008.
For the gold explorers and junior miners in the index at least, an improved fundamental backdrop for gold mining does not hurt either. And folks, fundamentals have improved during these last several months of economic angst. It’s the counter cycle after all.
As is now being well publicized around the internet, insiders are back on a net buying spree in the companies that comprise the TSX-V. That sure can’t hurt. It is Tax Loss selling season after all, and these people know the drill. Sell high and buy low when bag holding shareholders decide to give in and take losses against gains.
Remember when gold in the ground was being given away free and all you had to do was buy a company for its net cash or, comically, less? Well, things are not quite as crazy now, but they are not that far off.
You either believe in deflation with a sincere heart and the patience of an elephant, or you don’t. I believe there is a continuum in play and until proven otherwise, I’ll stick with that. Signs are mounting that the pendulum is swinging, pending the sorting out of the Euro noise.