Juniors

GDXJ is the ETF for junior miners and in particular junior gold companies. This sector has been very strong in 2010 and has solidly outperformed its counterpart, GDX as well as Gold. GDXJ made a key breakout in September and continued to soar into early November. The market soared above our target of $39 and … Continue reading

New mining companies looking to benefit from the skyrocketing gold price are popping up like daisies after a spring rain…..

AKA more speculative leader vs. more stodgy laggard.  It matters not what triggered the correction… this condition had to be rectified in order to get back to healthy dynamics. Source: GDXJ-GDX Ratio

Excerpted from the November 7th edition of Notes From the Rabbit Hole: Precious Metals – Wild Man, Stodgy Old Man & 3 Snowmen Let’s begin with a weekly view of the wild man… silver. I am going to tweak the target to 31.50 from the previously noted 33. Before this target is reached, one can … Continue reading

As if recent price action in the Gold price wasn’t enough, there is now a tantalizing play on the Gold miners available for speculators in the junior Gold patch. Long term options (LEAPS) on the GDXJ ETF that expire in January of 2012 and January of 2013 are now available. I remain a patient watcher … Continue reading

Days ago I was watching Peter Schiff on Yahoo Tech Ticker. Normally, I find myself in agreement with Schiff. This time, however I disagreed with his comments on the gold stocks. He was saying to buy GDX because the large-cap stocks were priced for a decline in Gold. He also said the speculative juniors were … Continue reading

In regards to technical analysis, we usually discuss (in our public commentaries) price patterns, intermarket relationships and sentiment. I can’t remember I wrote something about volume. This may be the first. Volume can be interpreted in a number of ways which can make it less reliable in my opinion. However, in today’s commentary we want … Continue reading

GDXJ has measured targets of $36.50 and $39.00. The first target was hit yesterday. Will GDXJ reach $39.00 or will it backtrack to previous resistance at $32.00? In any case, know your plan. If GDXJ snapsback to $32.00 to retest the breakout then that would be an opportune time to add to positions, especially if … Continue reading

Without internally generated positive cash flow our juniors are money-eating machines constantly having to go to the market to raise capital through equity offerings.

In episode 7, Dave Skarica and Trendsman discuss the short-term outlook in the precious metals sector and in particular, Silver, Juniors, the US Dollar and potential political dynamics.