TDG Exploration & Development Index Update

This index contains 12 companies involved in exploration and/or development and is equal weighted. The median market capitalization is ~$150 Million while the average market capitalization is higher but well below $200 Million.

The index is now up 92% from its June 2013 low which ended a 78% bear market. The index has broken out from a 10-month bottoming pattern and reached a new recovery high.

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There are a few other things of note. First, the volume since December has exploded, which suggests strong participation. In fact, the volume is essentially the highest in several years. Second, the index yesterday closed above a now flat 400-day moving average for the first time in quite a while. The 400-dma was resistance in late 2012 and early 2013. If the index continues higher and the 400-dma becomes support then its final confirmation that we are in a new bull market.

 

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