• 657 days Will The ECB Continue To Hike Rates?
  • 658 days Forbes: Aramco Remains Largest Company In The Middle East
  • 659 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 1,059 days Could Crypto Overtake Traditional Investment?
  • 1,064 days Americans Still Quitting Jobs At Record Pace
  • 1,066 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 1,069 days Is The Dollar Too Strong?
  • 1,069 days Big Tech Disappoints Investors on Earnings Calls
  • 1,070 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 1,072 days China Is Quietly Trying To Distance Itself From Russia
  • 1,072 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 1,076 days Crypto Investors Won Big In 2021
  • 1,076 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 1,077 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 1,079 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 1,080 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 1,083 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 1,084 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 1,084 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 1,086 days Are NFTs About To Take Over Gaming?
  1. Home
  2. Markets
  3. Other

Update on Gold 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 reached $43. Now the market is in correction mode, having declined to $37 before bouncing yesterday. We see very strong support at $35 and $33 and anticipate a bottom in that range. Also note that there has been very strong accumulation in recent months and very little distribution despite the market falling from $43 to $37.

GDXJ Chart

We also keep an eye on the ISE put-call ratio for GDXJ. Though the options market isn't as large as what we see in GDX, it has provided good signals thus far. In the last two days there was a spike and another elevated reading. This is something we'll continue to watch in the days and weeks ahead as it can help confirm a bottom based on technicals and price action.

Junior Golds (GDXJ)

If you missed out on the recent run, no need to worry because this is a bull market and the volatile junior gold stocks can have large corrections. For investors who are underinvested or missed the last run, now is the time to pay close attention. An opportunity in the next few days or weeks could be in your grasp. For professional guidance in riding this turbulent but profitable bull market, consider a free-14 day trial to our premium service.

Good Luck ahead!

 


Disclosure: Positions in junior miners

 

Back to homepage

Leave a comment

Leave a comment