It’s time to dive back into junior gold miners. Here’s why…
First, our E-wave cycle forecasts called for a bullish turn date in junior gold miners yesterday and today’s price action confirms the turn higher.
Even better is that the cycle charts project a sizeable advance ahead into the third week of July, as you can clearly see in the cycle forecast chart below:
The chart above of junior gold miners turned higher right on point, with significant gains expected until late July.
But there’s more supporting the bullish view on junior gold miners, including…
Bullish Force #1: Uncertain economic growth track. This comes in the wake of Friday’s disappointing Non-Farm Payroll figures and a sluggish trend of inflation readings.
Bullish Force #2: The political divide in the U.S. and Thursday’s testimony from former FBI Director James Comey in front of the Senate Intelligence Committee and a UK general election. Mr. Comey will be grilled about possible collusion between Trump campaign officials and Russian officials.
Angst toward the Trump administration has kept the gold market supported, fueled in part by active hedge fund buying – their biggest two-week jump in buying since 2007.
Bullish Force #3: General election in the United Kingdom and whether conservative Theresa May will solidify support to carry on with Brexit proceedings.
Current polling favors the conservative party by a slim 1 point advantage going into the election. But the election has taken on greater interest in the wake of last weekend’s terror attack.
Here’s what we recommend:
Using 5% of the funds you have allocated to this service, buy Direxion Daily Junior Gold Miners Index Bull 3x Shares, symbol JNUG, at the market, to open. Place a good-till-canceled protective sell-stop at $14.46.
Get this order in right away. Hold all other positions and stay tuned for new trades coming your way again very soon.
Good investing,
Mike and David
