Chris Vermeulen joins Jim Goddard of HoweStreet.com to discuss the latest on the gold and silver miners, and specifically the juniors. There is some pretty exciting price action beginning to happen in the precious metals miners which is a welcome relief to all of the holders who have had to ride the excruciating correction the past 8 months. Although we are still in a downtrend, when we sit back and look at the big picture, the metals and miners are possibly days away from creating a strong short-term buy signal to the upside. If we look at the GDXJ ETF, based on the chart pattern it looks like an 86% upside price rally from today. If this ETF can move up this much, the individual miner stocks “Golden Rocketships” have a higher beta to the index and can move 5-10 times as much.
The US Dollar is still in a long-term downtrend but on a short-term basis, we are at support and are seeing a bounce. We really need to see USD break 88 to see precious metals truly take off. There has been a really “frustrating” shift in capital the past few months with money constantly moving around with no real trend. The Russel 2000 took off late last year to become the leaders, but in the last couple of months, they have fallen out of favor with large caps such as Google, Microsoft, Tesla, Apple, and other NASDAQ heavyweights rallying and dragging all the indexes up.
Oil has had a pretty rough ride the past month or so. We talked about $34-$36 as an upside target months ago where we saw a wave of selling before peaking at around $60 where we saw another wave of selling. Crude oil is trying to get traction in a sideways consolidating pattern, which if it breaks the next upside target is $75 a barrel. This may lead to another rally in dirty energy stocks but watch a break below $57 which will cause another wave of selling.
Platinum and Palladium have been chopping around for a few months with Platinum being stronger than Gold as far as holding up. Platinum does have more downside in the short term but is still looking great in its new bull market and can be bought as a long-term investor. Bitcoin had a nice pop of around 6% yesterday with a new upside target of $72000-$74000 which will likely spark another pullback.