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

GDXJ Signals Imminent Breakout Into Major PM Sector Uptrend...

Originally published February 24th, 2014.

A lot of investors are going to miss out on the huge bullmarket advance in the Precious Metals sector that is just starting as this is written, because they are frightened of the impact of the broad market on the sector, but as we will see, the sector itself is signaling that it is going up, big time.

If the broad market looks set to go up, then many investors think that the Precious Metals sector will be ignored and drift lower again, as the broad market continues to rise. If the broad market tanks, then they think that the PM will get dragged down with as in 2008.

Actually, the way that it is looking now is that the broad market will continue higher and higher and the PM sector will soar. Why would that happen? - because we are on the road to hyperinflation, that's why. It is becoming increasingly apparent that either the Fed will chicken out of significant tapering, or that even if they do backpedal it will be too late, as the huge overload of extra money that has been injected into the system since 2008 wreaks havoc.

Fortunately, as far as investing in the PM sector is concerned, we don't have to bother to extrapolate fundamental scenarios, we just have to follow the message of the market itself, via Technical Analysis as applied to recent action in the PM sector.

It is no coincidence that the Market Vectors Junior Gold Miners ETF, GDXJ, is right on the point of breaking out from its downtrend in force from 2011 at the same time as many PM stocks are right at the starting line of major uptrends, being at key resistance at the top of base patterns that have formed since last June or on the point of breaking out of long-term downtrend, or both.

We don't have to wait for breakout to occur before taking positions, because the volume pattern and volume indicators in the GDXJ have already signaled that it is going to break out to the upside soon, or imminently, to commence a major uptrend, and this junior ETF is highly unlikely to enter an uptrend without the large and mid-cap stocks taking off higher with it.

Market Vectors Junior Gold Miners 4-Year Chart

Just look at the stupendous record upside volume in the GDXJ on the rally this year on its 4-year chart above, and how its volume indicators are spiking. This tells you all you need to know - it is sending the clearest possible message that the sector is going up big time, because this dynamic volume action signifies the start of a breakout drive that should shortly take the GDXJ clear out of its downtrend and launch it - and the entire sector - into a vigorous bullmarket advance. For this reason there is thought to be little point in waiting for breakout to occur before establishing positions, and it is on this premise that we have "backed up the truck" on clivemaund.com and been loading up with the better stocks as fast as we can. Why not join us, if you haven't already, and get your nose in the trough ahead of the mob?

Market Vector Junior Gold Miners ETF, GDXJ on NYSE, closed at $42.91 on 21st February 14.

 

Back to homepage

Leave a comment

Leave a comment