GDXJ Profit Taking & CDNX Stocks To Buy
Contributed Opinion

1. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Snowline Gold Corp.
2. Stewart Thomson: I determined which companies would be included in this article based on my research and understanding of the sector.
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Stewart Thomson Disclosures

Stewart Thomson is no longer an investment advisor. The information provided by Stewart and Graceland Updates is for general information purposes only. Before taking any action on any investment, it is imperative that you consult with multiple properly licensed, experienced and qualified investment advisors and get numerous opinions before taking any action. Your minimum risk on any investment in the world is: 100% loss of all your money. You may be taking or preparing to take leveraged positions in investments and not know it, exposing yourself to unlimited risks. This is highly concerning if you are an investor in any derivatives products. There is an approx $700 trillion OTC Derivatives Iceberg with a tiny portion written off officially. The bottom line:  

Are You Prepared?

Here's a look at a key short-term chart for gold: 

Gamblers playing GDXJ and SGDJ component stocks can buy those stocks at $2885 and $2835 for gold. Investors should focus on gold $2800 for their buys (while cheering for the price to go higher). Investors need to buy at bigger support on a bigger sale in the price than gamblers do.

Is the gold market frothy?

Well, judging from the emails I get, actual junior gold stock investor sentiment doesn't appear frothy at all, but on some of the charts, the oscillator positioning could be described that way.

On that note, here's a look at the daily chart for gold: 

Some froth is apparent, but. . . 

Here's a look at the weekly chart: 

There's some technical froth on the gold charts, but that has been the case from when this major bull run began at about $1810. I'm just not seeing emails that suggest investor greed.

The bottom line: The GDXJ and GDXJ components market is one to sell with moderation, only to book partial profits, and it's vastly too soon to make any kind of major top call for gold, let alone for the miners.

Here's a look at the weekly chart for GDXJ: 

The chart looks superb. Any pullback would likely be the last before a breakout over the neckline of this huge inverse H&S pattern.

Here's a look at the SGDJ ETF daily chart: 

While there's "oscillator froth," there's also bull flag action and that's in sync with the incredibly bullish GDXJ weekly chart.

What about the CDNX? Well, here's a look at it on the daily chart: 

Wow! If the CDNX index looks good, some individual component stocks must look even better!

On that note, here's a look at one of them:

GoldQuest Mining Corp. (GQC:TSX.V) operates in the reasonably stable jurisdiction of the Dominican Republic. Note the inverse H&S pattern in play.

The right shoulder is high, which is "extra bullish," and that pattern targets a 50% surge in the price, to about 45-50 cents. 

Another intriguing situation is Golden Lake Exploration Inc. (GLM:CSE). Here's the chart: 

It trades on the CSE and on the US OTCQB. Note the bull wedge breakout . . .  and the huge volume to go with it.

Goldquest operates in Nevada (another very stable jurisdiction), and the chart set-up suggests a "three-bagger" surge this year is a reasonable scenario.

A third incredibly interesting situation is Snowline Gold Corp. (SGD:CSE; SNWGF:OTCQB), and the chart is stunning: 

After a powerful rally to almost $5 from 60 cents, the stock has been in a bullish rectangular consolidation for the past 18 months.

It now looks set for the next big move, which should be to a minimum target of about $6.40. I'm excited, and momentum enthusiasts could buy Snowline right now!

All in all, the current times are good for the junior miners, and they are poised to become great. Light selling of trading positions (not core) in GDXJ/SGDJ component stocks is AOK (given the size of the surge over the past six weeks), and investors may want to consider allocating a portion of those profits to some quality CDNX, CSE, and OTCQB stocks that appear to be at the start of what can only be described as generational bull market runs!

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