Breakouts As Bull In Full Swing Now

Several mining etfs including GDX, GDXJ, and SIL have closed at new daily highs for the bull market, and if they hold up into Friday’s close, they will be new weekly highs as well. The pullback over the last few weeks now appears to be nothing more than a typical shakeout. I added back shares I had trimmed back in mid-July, and think SILJ is next to break out. Silver itself might not be far behind, either, which would be another catalyst on top of the fact the miners’ earnings report season has just begun, with many of their stocks responding very well to blowout results to the upside. Case in point, the consolidation in SSRM after a huge run appears to be over, with the stock flying over 16% higher yesterday, smashing into new bull market highs. Let’s see what the rest of the miners can do, being the Q2 results being reported being the best in history for many of our holdings. Many of our miners are up several hundred percent already, but this group can fly like no other, and there is still lots of gains to be made, we remain heavily loaded.

Also we must not forget how well the precious metals and their miners did earlier in the year, when the stock market puked and the miners took off higher. It looks as though the stock market might be in for some downside, this should provide an additional catalyst to boost the miners higher on top of the stellar earnings being reported. Stay long and strong, no need to watch or respond to every tick, the group is headed higher.

A few charts of the etfs mentioned above:

Will there be pullbacks along the ride to much higher prices, sure, but they are to be bought. Many of the smallest junior miners are just starting to move, another sign the bull is still in its early stages. I might take some profits in our accounts, if the miners get over-extended on the longer-term charts, but still I will look to put those funds back to work on any significant pullbacks to new support levels. Try not to get too fancy, stick with the strong trend higher for most of your positions, lots more upside to come!