|Just done my weekly update of my "mythical portfolio" -- a basket of 10 junior mining stocks I've been following since 2001. My conclusion... stay Long and Strong!|
Over the last 5 weeks (since August 4th) a very unusual thing has happened.
The POG has fallen 1.8%, but the PF has *gained* by 5.1%. This is *not* the normal behaviour. In fact with a POG drop of 2% say I would normally expect a PF drop of 4% or so. Instead the PF has gained 5%.
i.e., We have a *strong* divergence, with the junior stocks leading the POG strongly.
This tells me that we should expect a major move in both the POG and the junior mining stocks over the next 2 to 3 months. JMHO, and it would be nice if I was right! :^)
Saturday, September 09, 2006
Sometimes the market has messages in things that seem to be out of sync. For example, you generally expect to see certain shared characteristics in the behavior of the mining stocks and the metals, for example. Or the junior mining stocks and the seniors. Sometimes when things are not behaving in the manner 0ne expects, there is a signal for what is next. Last night, my friend sent me a note with these observations: