jan 4 JMU

Juniors PGEN Marines Update (JMU).

(Pronounced “JAYMEW”)

 

Jan 4, 2016

 

Junior PGEN Marines Update

 

  1. As the year 2016 begins, you’re in a pretty decent position. It’s true that some gold stocks slid to marginal new lows in 2016. It’s true that the ETFs did as well, but many individual stocks have come alive…. And surged higher all year long!
  2. Also, most gold stocks did not confirm the recent low in bullion. Nor did bitcoin. Nor did the yen.
  3. That’s significant.
  4. You begin 2016 with Saudi Arabia acting like ISIS. From a purely academic/theoretical perspective, Saudi Arabian law is more strict than ISIS law, and when the nation was first formed, barbarism was as common as it is with ISIS now.
  5. Saudi Arabia can become a key price driver for gold, but the tidal wave safe haven trade of the yen versus the dollar is what can allow it to really blast gold higher.
  6. It’s important to remember than the bank econs got gold all wrong in the y2k area lows of $250 - $300. They kept predicting it lower. In 2011, they were predicting $2200+ across the board.
  7. The point isn’t that the bank econs are idiots. It’s that they tend to perform best when a trend is already in play. After making a number of good calls, the market trend can change, and they get it all wrong again.
  8. I’m not saying that any magical low for gold, you, and your gold stocks, is in, or isn’t in. What I am saying is that the dollar is imploding against the yen, and there’s a massive bullish non-confirmation in play for gold on that chart.
  9. What I am saying is that odds are growing like wildfire that Arun Jaitley is fired from his position as finance minister, after being ordered to chop the duties by Modi in the April budget. It won’t look like he’s being fired, because he’ll probably be “promoted” to defence minister.
  10. China is set to unveil the SGE gold fix, and the PBOC may follow the Russian CBR and expand its consistently monthly buy program.
  11. The US business cycle is old age, and it doesn’t have nine lives like a cat does. Janet says she sees “inflation shoots”. My suggestion: Don’t bet against her.
  12. When all things are considered, it’s a great environment for gold. Let’s take a look at some of your stocks:
  13. Please click here now: http://gracelandjuniors.com/wordpress/wp-content/uploads/2016/01/2016jan4mux1.png That’s the daily chart of Flying Five component McEwen Mining.
  14. Rob “Mr. McQ” McEwen has to be feeling “amped” here, as Argentina changes government, and gold rallies in safe haven mode alongside the yen!
  15. Note the textbook pullback to trendline support, and the blastoff from it, now in play!
  16. Please click here now: http://gracelandjuniors.com/wordpress/wp-content/uploads/2016/01/2016jan4mux2.png That’s the weekly chart. I would not be a major MUX seller until price arrives in the $1.60 area, and do so via pgen.
  17. That represents about a 150{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9} gain from the 65 cent area lows. MUX is off to a great start for 2016!
  18. Please click here now: http://gracelandjuniors.com/wordpress/wp-content/uploads/2016/01/2016jan4zjg1.png That’s the daily chart for the Bank of Montreal ZJG.to junior gold stocks ETF. I like the action!
  19. Price has burst out, for a second and hopefully real time, from the flag-like formation that’s really a small drifting rectangle, with Tony the Stochastics Tiger flashing a momentum-style buy signal!
  20. Please click here now: http://gracelandjuniors.com/wordpress/wp-content/uploads/2016/01/2016jan4gho1-1.png That’s TAHOE resources, blasting upside from a huge base pattern.
  21. With operations in both Peru and Guatemala, Tahoe made a monthly dividend payout every month in 2015!
  22. It’s not a massive dividend, but it’s solid, and the company is on track to become an intermediate gold producer as well as being a key component in the SIL silver stocks ETF.
  23. Tony is also flashing a buy signal on the chart, to kick off 2016!
  24. Gridtime! The Dow is down almost 400 points as I send this off, and GDXJ is up 3{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9}! Most gurus think the Fed responds to monetary conditions. I argue that the Fed makes those conditions, and the economy responds to the Fed. If Janet says she sees inflation shoots, those shoots may or may not be there, but they are coming, because she’ll create them.   Let’s hit the junior gold stock gridlines now, cash registers in hand. I’ll see you there!

 

Kirk Jr. on the gold explorers bridge, out!

Thanks!

Cheers

St

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