PM Fund Manager: Junior Mining Shares Look Ready to “Rumble”

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.
It’s time to start picking your favorite stock plays.  Of course, there’s always the possibility that heavy intervention “mysteriously” tries to prevent a move, but right now the odds are in the favor of a big move.
In my opinion, It’s time to start buying into these stocks.  I expect some of the high-quality exploration stocks and emerging producers will move up several multiples from their current prices.

Submitted by PM Fund Manager Dave Kranzler, Investment Research Dynamics

miners rumble

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 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:

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It’s time to start picking your favorite stock plays.  Of course, there’s always the possibility that heavy intervention “mysteriously” tries to prevent a move, but right now the odds are in the favor of a big move.

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.