Category Archives: Top News

Fundamental Catalysts in Junior Mining Sector Lead To Bullish Breakouts and Reversals

Fundamental Catalysts in Junior Mining Sector Lead To Bullish Breakouts and Reversals
Some important developments are taking place in the junior mining sector which must be followed by astute investors who are timing a potential market bottom in the TSX Venture. I recently returned from the Vancouver Resource Investment Conference with some exciting developments. Things could turn quickly for resource investors and when they do one should be ready to sew the rewards of years of plantings during one of the worst bear market cycles in modern history for commodities. For many years I have been studying some of the top performers and believe fundamental developments like what follow are indicative of potential technical breakouts.
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Precious Metals and US Treasuries Seen as Safe Haven as Oil and Stocks Crash in 2016

Precious Metals and US Treasuries Seen as Safe Haven as Oil and Stocks Crash in 2016
It is important to study the beginning of trading in January as major pools of capital tend to re-position around this time for the new year 2016. So far this year it has been ugly, one of the worst starts in history. Oil is crashing below $30 down over 20% year to date. The Nasdaq and Russell 2000 are already down more than 10% year to date. Mostly all markets are in the red except precious metals and treasuries.
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Lithium Continued To Excite Investors in 2015, Will Stock Market Crash Bring Back Interest to Junior Mining?

Lithium Continued To Excite Investors in 2015, Will Stock Market Crash Bring Back Interest to Junior Mining?
Over the past year I have studied the content of my blog and would like to report which are my top articles and videos in terms of unique page views in 2015. Clearly, my top content in terms of interest from readers in 2015 was the lithium sector where we are continuing to see demand outstrip supply. It was one of the only commodities rising in price while the sector was wiped out by a strong dollar. The August correction in the stock market brought back retail interest over the summer. I expect as tax loss selling ends today to begin to see a rally in the new year. This rally is called the January Effect where beaten down sectors bounce as fund managers look to re-position in the new year.
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Motorola’s Acquisition by Google Left a $7.2 Billion Void in Niche Market

Motorola’s Acquisition by Google Left a $7.2 Billion Void in Niche Market
There is a company gaining market share due to the recent acquisition of Motorola by Google. In 2011, Google bought Motorola for its Android Operating System addressed for consumers in the use of smartphone and then sold off the rest of Motorola to other outfits. This left a huge void in Motorola’s Business Unit which sold “connected-vehicle” devices to fleets across the transportation sector. Its a big $7 billion market that this small company is looking to build its market share.
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Countdown on Barrick Decision with NuLegacy Gold (NUG.V)

Countdown on Barrick Decision with NuLegacy Gold (NUG.V)
Gold is testing July support and multi-year lows, however there are unique junior gold mining equities which continue to stand out. NuLegacy Gold (NUG.V or NULGF) has been hitting some impressive high grade gold on the Cortez Trend in Nevada this past year. Nevada is one of the most profitable and lowest cost jurisdictions especially Barrick's (ABX) mines on the Cortez Trend which I was blessed to visit last year. With the depressed price of gold there are very few economic places to mine gold like Nevada. The Cortez Trend is where Barrick produces its most profitable gold and its also where they are making their biggest discovery at Goldrush, which is adjacent to NuLegacy's Iceberg Deposit. In addition to massive discovery at Goldrush, one of their little JV partners NuLegacy Gold is finding high grade gold right next to Goldrush. This could be Barrick's next big gold discovery.
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Uranium Resources (URRE) Acquires One of the Best Uranium Projects in The World

Uranium Resources (URRE) Acquires One of the Best Uranium Projects in The World
All we need for a uranium bottom is follow through from major private equity funds who may be waiting in the wings ready to pounce for the following reasons. Japan has restarted two nuclear reactors. This is a major turnaround from their prior path of abandoning nuclear following once in a millennium accident at Fukushima in 2011. In addition to the 180 degree turn in Japan, China continues its record pace of building and starting nuclear power plants to move away from coal which is suffocating some of their major cities. Even the United States has started operating its first new nuclear reactor in close to three decades. All this positive news indicate demand is increasing. Because of decade low uranium prices, supply has dwindled as it is unprofitable to mine unless you are lowest cost producer. Rising demand with declining mine supply equals the potential for a price spike higher.
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Positive Gains In 2 Junior Gold Miners Despite TSX Venture Meltdown

Positive Gains In 2 Junior Gold Miners Despite TSX Venture Meltdown
In 2014, my readers were blessed in seeing two of our junior mining equities soar higher than the entire small cap market. Now in 2015 despite the worst bear market in junior gold mining history, once again we have seen the great out-performance of two of our select junior gold companies. Its easy to pick outperforming junior miners in a bull market, its much more challenging to find the winners in a historic bear market when the category 5 hurricane winds are blowing against you trying to knock you down. Be careful out there and stick with the stock pickers who can pick winners in a bad market. Take a look at these two junior gold miners on the TSX Venture able to post positive gains despite a record decline in the junior sector.
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Major Bottom Reversal Follow Through in Junior Gold Miners (GDXJ) and Uranium Miners (URA)?

Major Bottom Reversal Follow Through in Junior Gold Miners (GDXJ) and Uranium Miners (URA)?
On Friday July 24th, the GDXJ made a bullish engulfing reversal on major volume. Then eleven days later a major follow through occurred on high volume. The news that drove interest was China devaluing its currency. The mainstream media and majority of pundits were claiming currency wars were over as precious metals were discarded. I disagreed and maintained that we would see a bottom in our real assets. Now this Yuan devaluation could start the next round of competitive currency devaluations and the beginning of inflation. The Fed may be reluctant to raise interest rates as the strong US dollar curbs growth and makes it more challenging for the US Government to pay back its record amount of debt. This may be the perfect storm for precious metals to once again take center stage and eventually breakthrough 2011 highs at $1900 USD.
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Voisey’s Bay Area Capturing Attention of Junior Mining Investors Once Again

Voisey’s Bay Area Capturing Attention of Junior Mining Investors Once Again
The worse things were the better they will get. This market has led to most companies going inactive. This will dry up potential supply of metals planting the seeds of the next boom. Silence and inactivity is death in the junior sector. Continue to look for companies raising capital and beginning to drill. A new discovery could transform our beaten down sector.
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Ready For The New Bull Market in The Junior Mining Sector?

Ready For The New Bull Market in The Junior Mining Sector?
It is possible we are once again at or near the turning point or bottom in the junior mining sector and near a top in the tech sector. Only a handful of the tech high flyers have pushed the equities higher. Already the transports and utilities have been under-performing. It may be wise to hedge gains made in the S&P500 and Nasdaq and increase accumulation of precious metals and the junior miners near historic lows. July 24, 2015 may have marked an interim low on the GDXJ as it experienced a classic bullish engulfing reversal pattern on high volume. Since this past Monday, support has come into some of our selected miners. If its the beginning of the rally, follow through should occur by the end of this week. I am still cautious as the precious metals rallies have been fake outs in the past. In order to confirm the interim low I would like to see some increased buying before the end of this week.
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