It looks like after a long 3-yr drought, we may be in the early stages of a monster move in the junior mining shares. The GDXJ junior index is up 35% YTD and 23.5% since June 1. Doesn’t seem like it, does it?
As you can see from the graph below, the junior miners have definitely rebounded off their 3-yr decline. The graphs shows the RSI, MACD and On-balance-volume indicators. The RSI and the MACD have been positively diverging from the the GDXJ since March/April. These are more “quiet” indications suggesting that smart money has been accumulating the sector.
It gets harder to “hide” when you apply the OBV on-balance-indicator, which is a “louder” indicator of big volume moving into the sector:
It’s time to start buying into these stocks. Some of the high-quality exploration stocks and emerging producers will move up several multiples from their current prices. I have some of my favorite plays (we own all of them in the fund I manage) available for you to look into here: IRD Research Reports.