www.unuudur.com » Uranium miners making quantum leaps higher

Uranium miners making quantum leaps higher

[Нийтэлсэн: 12:27 02.03.2014 ]

www.mining.com

The resource sector is heating up with merger and acquisition activity as I predicted only a few weeks ago in this recent article. When the herd was ignoring our sector, I positioned my readers ahead of the curve and called it a rare holiday bargain sale. Now the sentiment for the junior miners is turning positive. This rally is just not for the gold and silver miners (SIL). The uranium miners (URA) are taking off as well as Japan looks to fast track the nuclear restart.

Now only a few weeks after a bitter tax loss selling season the resource sector is leading the market as evidenced by the outperformance of the TSX Venture Index over the Dow Jones Industrial Average (DIA) in 2014.

A huge influx of money has been rotating from the overvalued blue chips, social media such as Facebook (FB) and Twitter (TWTR), banks (XLF) and real estate sectors (XHB) into the junior mining resource stocks (GDXJ). Yes we have seen new highs in the major indices but the large money may have already been rotating for weeks into the undervalued junior gold and silver miners . Bull markets end on the average once every three years. Smart money may be selling bonds and intangible stocks for hard assets in the form of commodities and mining stocks. This chart below shows that the Venture Dow Ratio is breaking out above the 200 day for the first time in three years. Look for a bullish golden crossover of the 10 and 40 week moving average for a confirmation of the bottom.

Goldcorp (GG) is launching a hostile takeover for Osisko Mining (OTCPK:OSKFF) for $2.6 billion. Goldcorp is going after Malartic low grade-bulk tonnage Malartic Gold Mine. If Goldcorp is buying a low grade, high production asset then they probably think gold prices are headed significantly higher unlike the pundits on the TV. As the sentiment turns positive for gold look for the junior miners to continue to outperform. This may be the end of a long correction from $1900 in gold and $50 in silver. Look for a steady uptrend as the smart money in China and India has used this rare correction in the metals to load up on gold and silver at a discount price.

As I told you in this recent article, smart money may be entering the uranium miners for several weeks as well. Remember keep a close eye on the sector bellwethers such as Areva (OTCPK:ARVCF) and Cameco (CCJ). Areva has outperformed in 2013 and I indicated Cameco should play catch up soon in 2014.

By Jeb Handwerger



Шинээр

Mongolia Celebrates 60 Years in the United Nations
[Нийтэлсэн: 03.11.2021 ]
[Эх сурвалж: ]
SouthGobi Announces Profit Warning and Business Update
[Нийтэлсэн: 29.10.2021 ]
[Эх сурвалж: ]
Coal truckers stuck at Mongolia-China border
[Нийтэлсэн: 29.10.2021 ]
[Эх сурвалж: ]
Chile protests take toll on Antofagasta quarterly output
[Нийтэлсэн: 23.01.2020 ]
[Эх сурвалж: ]
Metallurgical coal prices starting to slip: Fitch
[Нийтэлсэн: 02.10.2018 ]
[Эх сурвалж: ]
Copper price plunges to 1-year low
[Нийтэлсэн: 14.07.2018 ]
[Эх сурвалж: ]
Global Religion and the United Front: The Case of Mongolia
[Нийтэлсэн: 11.07.2018 ]
[Эх сурвалж: ]
Thermal coal prices hit 6-year high
[Нийтэлсэн: 09.07.2018 ]
[Эх сурвалж: ]
Former Rio Tinto exec jailed for corruption in China let free
[Нийтэлсэн: 09.07.2018 ]
[Эх сурвалж: ]

Get Flash to see this player.