Rotation Into SGDJ & GDXJ?
Contributed Opinion

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Are You Prepared?

With a Fed meet, tariff tax deadline, jobs report, and a key inflation report (PCE) all in this week's pipeline, investors need clarity at a time when it seems impossible to get it.

To get that clarity for winning market action, savvy gold bugs have to look beyond the cloud of these reports and events . . .  and focus on key action zones for gold.

Here's a look at two of those zones on a line chart:

The 3170-3130 appears to be a value zone for bullion buyers and mine stock enthusiasts alike.

The 3440 area is an obvious launchpad if there's a breakout above it and the target of the current consolidation is about $3800.

Here's an interesting SGDJ (Sprott junior miners ETF) chart: 

The $49-$48 zone is OK for gambler buys. For investors, the $43-$40 zone offers solid value… and it likely corresponds with $3170-$3130 for gold.

Miners in the GDXJ and SGDJ ETFs tend to follow gold, as do the ETFs themselves.

Here's a look at one of the larger SGDJ components, K92 Mining Inc. (KNT:TSX.V; KNTNF:OTCMKTS): 

While it's unknown whether K92 will trade near $9 or whether gold will be around $3170 if that occurs . . .  if the scenario does occur investors can buy fairly aggressively.

A move just back to the $12 high would be a 30% move from the buy zone. That's "small potatoes" for a tiny CDNX stock, but for a "junior-intermediate" like K92, it's a substantial gain. . . 

And it's a gain that likely occurs in only a 1-2months time frame.

Speaking of the CDNX, here's a look at the daily chart: 

Typically, Stochastics (14,7,7 series) tends to go to a sell signal first on the daily chart, then MACD, and finally the TRIX. 

The CDNX has staged a very powerful rally in 2025, and a pause would be healthy. My suggestion is to "cool it" on the CDNX stocks for now (but only very temporarily), and focus on the slightly more established GDXJ/SGDJ stocks, and do it basis key buy zones for gold.

Many individual CDNX component stocks have staged "ten bagger" moves (1000%) . . .  and more.

A rest is well-deserved.

Here's a look at the GDXJ ETF: 

The $67-$65 zone is very similar to the $49-$48 zone for SGDJ; it's a buy zone for gamblers and "nibblers".

The $58-$57 zone is for investors, and it may correlate with the magnificent $3170-$3130 buy zone for gold!

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