Major Opportunity


The Miners have rallied over 17.00 % since the daily cycle low that printed on May 29th. Today they gapped higher, rallying for over 5% alone today and printing today’s candle above the Bollinger Band. So the Miners are getting overbought and are in need for a breather.

gdx bollinger

Below we can see that the True Strength Indicator has exceeded the level that has seen all other daily cycles turned back.

gdx tsi

This kind of pace is unsustainable. And the timing band for a daily cycle low only three days away …

gdx scenario

A possible scenario is to see the Miners break higher again on Friday before reversing. Then a brief daily cycle decline that sees the Miners backtest the 200 day MA as it prints its daily cycle low before continuing higher.

While the Miners have been impressive, the Junior Miners have been better.

gdxj gdx

Out of the December intermediate low, the Junior’s out gained the Miners 59% to 38%. And the current rally has the Juniors out gaining the Miners 34% to 17%.

The may be Junior Miners but they offer a Major Opportunity …



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