When looking back the past 6-years, buying and holding Senior and Junior mining stocks has not been a good idea. Are things about to change on this front? Could owning Junior miners turn into a Mint of an idea? Possible!
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The GDXJ/GDX ratio has remained inside of falling channel (1) since the highs back in 2011 and the trend to this day, remains down, as the ratio has created a series of lower lows and lower highs.
The ratio is now testing a 6-year breakout level at (3) this week. Even though miners have done well for the past 6-weeks, if the ratio would breakout of this 6-year falling channel and clear last summers highs, it would send a risk on message to Junior and Senior miners.