When looking back the past 6-years, buying and holding Senior and Junior mining stocks has not been a good idea. Are things about to change on this front? Could owning Junior miners turn into a Mint of an idea? Possible!
Below looks at the Junior Miners ETF (GDXJ)/ Senior Miners ETF (GDX) ratio over the past 6-years.
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The GDXJ/GDX ratio has remained inside of falling channel (1) since the highs back in 2011 and the trend to this day, remains down, as the ratio has created a series of lower lows and lower highs.
Due to a potential support test in this ratio on 12/27/16, Premium and Metals Members went long GDXJ at (2). Since GDXJ hit potential support at (2), it is up over 40% in less than 6-weeks.
The ratio is now testing a 6-year breakout level at (3) this week. Even though miners have done well for the past 6-weeks, if the ratio would breakout of this 6-year falling channel and clear last summers highs, it would send a risk on message to Junior and Senior miners.
If you would like to stay on top of the Power of the Pattern in the Gold, Silver, Copper and Mining sector, we would be honored if you were a Premium or Metals Member.