GDXJ Outperforming GDX

GDXJ, which we can call the bigger juniors is outperforming GDX, the senior miners. GDX also includes some royalty companies and has been much stronger than the HUI, which is devoid of royalty companies.

We also include Gold at the bottom of this chart. Gold has been inching closer to important support. We think the metals could be a few weeks away from testing their last support. Even as Gold is vulnerable, GDXJ is strongly outperforming GDX. Today the GDXJ/GDX ratio closed at its highest level since January.

Gold equities have been in a bear market for essentially four years. The GDXJ vs. GDX ratio peaked in April 2011 and may have bottomed in April 2015. This chart is a good sign for the sector. It obviously does not preclude the realistic chance that Gold could breakdown below $1100 but more importantly, it argues that the end of the bear market is coming.

 

june8.2015GDXJvGDX
GDXJ vs. GDX