The ‘V’ is doing this, which I believe is a sign of excess (i.e. momentum) starting to layer into the reflation trades.
The weekly chart is striking.
Ah, but is it really or is the inflation they’ve relentlessly pumped into the system by one monetary trick or another finally just seeking out equilibrium? TSX-V is the latest market to spring to a cyclical bull (ref. Copper, Agriculture, etc.). The next notable resistance area is shown.
So while the media are going full on Bitcoin, whatever this DOGecoin is they are pumping, Tesla and whatever Elon Musk is pumping now (sad side note; gold bugs are actually rooting for Musk to pump silver now, which you can see if you care to take a look at my Twitter activity). The stock market is riding the bubble express. And it is doing it on inflation, which is why the speculative TSX-V has been a prime party-goer since March.
But little outliers in the world of TSX-V (and related) stocks that have not moved much yet could get pumped at some point. Some of the stocks have already exploded like the Uranium stocks, my currently held PLL & STLHF (SLL.V), Pot stocks and long ago MAI.V (MAIFF) & GBR.V (GTBAF). These last two, being gold stocks, have provided pullback buying opportunity (I just hold) for those who wanted them.
But thinking about stocks that have not taken off yet, owing to the fact that they are gold stocks, which as a sector have been on the outs, it’s logical why the charts of EMX, MMX, SGSVF (SBB.TO) and others have looked relatively good compared to senior miners. They have stayed pretty bullish through the correction. So that in itself is telling us something about the speculative end of the market and its emblematic index, the TSX-V.
But what about the non-starters?
I added an initial position in EMRRF (OGN.V) in part because it’s chart has gone nowhere but is in a decent little pattern, in part because a subscriber with good market knowledge jumped up and down about it and in part because of the above-noted potential TSX-V effect.
AMXEF (AMX.V) is more similar to group noted above in that is already elevated, but it replaced a stock QMXGF (QMX.V) that I held and was a perfect example of a stock going nowhere until one day it went somewhere, i.e. vertical. I sold it on a buyout by EGO.
GAYMF (GWM.V) is another I hold that has gone nowhere but if the company pokes a good hole or two it could ramp. I am not a stock analyst, so please don’t take these little specs as recommendations. The main point of this update is that when you consider the TSX-V above and then see some charts like these and consider yourself tolerant of speculative risk, there could be a place in a portfolio to speculate on some of these items eventually making big moves. It’s how they roll… go nowhere forever and then one day BOOM.
I know a lot of subscribers are probably more familiar with the back woods and cow pastures of the TSX-V than I am. So this update is really just to note that the TSX-V is gaining momentum and some non-starters like the charts below, preferably real companies and not scams, will one day get in on the action. Those of you who ‘play’ this area might want to look for candidates.
[edit] As a side note, if you’ve got ideas along these lines, whether precious metals stocks or other resources, feel free to pass along so I can view the chart. I’d like ideas with fundamental value, even if still speculative, however. No scammy ones. ;-)
