Lots happening in the markets lately, just a quick note that I added to EQX today, daily chart is below.

While not deeply oversold on the daily chart, EQX is very oversold on the monthly chart technicals still, so I am comfortable adding into this multi-day pullback. Monday we saw silver make its second largest one-day gain ever, so the tide could be turning for metals and their miners as surprises are now coming on the upside again.

Not sure why the gold and silver miners just took off higher in the last few minutes, but could it be news like this?

https://www.reuters.com/article/volkswagen-batteries-canada/vw-aims-to-take-stakes-in-canadian-mines-mine-operators-handelsblatt-idINS8N2XV08S

Keep in mind that silver typically produced as a by product of gold or base metals mining, so the SILJ etf could benefit greatly if more companies follow suit and start buying stakes in Canadian mining companies. Just a small run to the 200 day MA is a 28% gain from the current price, as I type.

Along with $Silver, we have new ICs confirmed in $Gold, SILJ, GDXJ, and SIL, we are only waiting for GDX to confirm it’s new cycle. These new ICs suggest general upside for 4-6 months, so it’s time to be fully invested in miners and precious metals. Below is the weekly chart for $Silver, but the charts of all the others mentioned above look about the same, notice the MACD is just about to turn positive as well, after being negative the last 3+ months.

It’s still too early to tell, but it’s quite possible the miners have started a new uptrend, after having broken the severe downtrend they we experiencing. I’m posting the daily charts for GDXJ and SILJ below, but keep in mind these etfs still have not reached oversold technicals on the daily charts, that could take another few days of sideways to lower prices. However, if the miners don’t give up much of the recent gains, its a sign there are buyers of miners under the market, and not many sellers. This would indicate another strong move higher, once the mines turn up again. We added to FSM (Fortuna Silver) and the SILJ etf over the last few days, and will continue to add to those and stocks like CDE, HL, and PAAS when opportunities arise (into price pullbacks), maybe even this morning.

As today is the first day of the new monthly, its time again to review the long term charts as they have new data points this morning. Below I posted the SILJ monthly chart, but I could have posted any of the precious metals miners or metals etfs, since they all look very similar. That’s a good sign, it means sentiment across the group is synched up and near unanimous, as they all show oversold technicals such as stochastics and MACD now contracting as it begins its move back to the zero line. GLD and SLV also look the same, all that remains is to see how far and fast miners and metals can move as they have just started new daily cycles, and are looking to confirm new IC’s (intermediate cycles) next, which would extend the potential upside to 4 months or more. We are still looking to add into intraday weakness, and especially if we can get a few days in a row of lower prices, as the daily stochastics are now overbought. This suggests we might see a few days of lower prices, not guaranteed by any means, but if occurs we will add to our mid-sized silver miners, including HL, FSM, CDE, maybe PAAS, AG, and EXK as well.

Now that the FOMC announcement is behind us, and the miners acted well in the face on another .75% rate increase, we decided to add to our SILJ holdings this morning on the early dip in the first hour. We didn’t place any trades yesterday, instead just wanted to observe the market’s response to the Fed decision. Several important things occurred this week, including the breaking of many downtrend lines in the group, on their daily charts. Cycles followers also will note we now have confirmed Daily Cycle Lows in place, another good sign the turn higher has begun. Lastly, we are now seeing the stochastics on the weekly charts emerge out of oversold, same with the RSI (5), again suggesting the bounce has begun. Now we have to wait and see how far the move higher can go, and if it can “stick”, that is to say, keep it’s gains. For now, with a new daily cycle confirmed, we should expect 6-10 weeks of generally higher prices in the miners, but if we can get a new Intermediate Cycle confirmed in the group, then we could look for 4-6 months of higher prices. The cycles only suggest the probable direction, how far and fast they move is something we can never know ahead of time. We will continue to look to add into pullbacks, but are likely done buying for this week, as we are loaded up and have already had a decent bounce over the last couple of days. Below is a chart of SILJ showing the broken downtrend line, but just about every mining stock shows a similar pattern.

Equinox Gold is down roughly 60% in jus the last three months. We added to our position today, ahead of the FOMC announcement this afternoon. Typically, we would wait until after the news is out of the way, but so many miner charts look like the one below, we have to think a low is near, if it isn’t already behind us.

Below I posted the SILJ daily chart, and the CDE weekly chart going back 5 years, both with their clear downtrend lines from recent highs. One could wait until after the trend line is broken to the upside before buying, but with such drastically oversold technicals, I would rather add to positions here while the stochastics are oversold on the 30 minute bar chart intraday.

A break above these trend lines, combined with technical indicators coming out of oversold and new daily and intermediate cycles , all suggest a bottom is near.

Since the recent high in mid-April, the large-cap miner etf is down over 40%! It’s been painful to hold, but even if they go lower, now is not the time to sell miners as they sit in a strong area of support on the weekly chart, and almost all technical indicators are screaming oversold. We took advantage and added to out GDXU and HL (Hecla mining) positions, and might add some more this morning as the miners closed yesterday’s trading with oversold stochastics on the 30 min bar charts as well. Below are the daily and weekly charts of GDX.