That’s all, folks!

The GDXJ ETF moved higher today (as gold and silver did), and as a result the RSI based on it moved above 70.

In the recent years, it was almost always the case (and absolutely always since 2021) that when GDXJ’s RSI moved above 70 that a major top formed and GDXJ was about to slide.

Meanwhile, the USD Index moved lower, and it’s now just a bit above its previous yearly low. Based on the analogy to 2008 (and also 2011), it seems that the bottom is in or it’s so close that any potential downside here is likely negligible.

Consequently, the odds are that the junior miners are topping here. Even though one might “feel” that this is the time to drop the towel, and maybe even go long, the history shows that exactly the opposite is justified from the risk to reward point of view. If I didn’t have a short position in junior mining stocks right now, I would be opening it right now.

As always, we’ll keep you - our subscribers - informed.

Thank you.

Sincerely,
Przemyslaw K. Radomski, CFA
Founder, Editor-in-chief