The caveat is that it is still Santa season and the market is subject to the machines on a daily basis. In other words, in my opinion the market’s signals a less trustworthy than normal.
But as HUI and GDX grind at their down-sloped 50 day moving averages and GDXJ slightly out-performs, it is interesting to view some silver (or combo Ag/Au) stocks looking bullish. The silver stocks often lead rallies and with silver leading gold since September that makes good sense.
Here is my current holding, SILV.
AXU, which I finally bought on a pullback a couple days ago.
HL, which was added a few weeks ago.
MAG, which ticked a new high today.
And then there is this forward guide, the TSX-V/TSX ratio.
Real? Memorex? It’s Santa season. But stay tuned as we head into January and 2021. The leaders are leading while the precious metals in general continue to grind. There remains an open lower target for HUI (260 +/-) but we are also getting into the latter part of the November-January seasonal when the sector bottoms (on average). With the silver stocks getting peppy it looks like a good leadership indication, taken at face value.