When it comes to buy and holding senior gold mining stocks (GDX), they have been a place to avoid for the past few years. The same is even more true of Junior Mining stocks (GDXJ), as its performance has even been worse over the past few years.
The chart above looks at the GDXJ/GDX ratio since 2013, reflecting that GDXJ has been much weaker than GDX, by a big percentage. This year the ratio may have created a rounded bottom and of late the ratio is “attempting” to push above resistance.
Historically, if one is to be long the miners, its usually a positive if this ratio is heading higher. Investors want this ratio to do much better than it has for the past few months, for miners to be in the “clear” and to be a buy and holder of these assets.
GDXJ remains inside of this two year falling channel. Of late it is pushing above falling resistance, which is a positive for this ETF. January highs at $28.89 looks to be the next key test for GDXJ as its pushing higher.
Dick, Members bought $TLT last week, after have a very big decline over the prior 16-weeks. Thanks for your viewership and question. Chris
VERY HELPFUL. AM VERY INTERESTED IN BOND MARKET DIRECTION, ANY THOUGHTS?
Terry, historically when this ratio is heading lower, its NOT a time to own miners. This ratio has kept people on the right side of the big trend for years. Sharing this to keep you informed of a potential trend change.
Thank for your question, Chris
This post doesn’t really help much, should I be buying, holding or selling GDX and/or GDXJ? If so, when?