Are Diamonds a Junior Miner’s Best Friend?

GDXJ is going to break one way or the other pretty soon.  It’s in a Diamond, which is a consolidation pattern, usually thought to have no bias between trend continuation (in this case up) or reversal.  If it ends up breaking down it will have been a volatile reversal pattern that whipsawed everybody up and down for a month, making sure every last desperado who felt gold stocks were running away from them got aboard.

I won’t buy GDXJ because I pick my own juniors, but I will buy GDX because I like its mix of seniors.  I know it is not popular given the momo of late, but why not plot out some downside support targets and be patient; at least until this pattern betrays its intentions?


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