GDXJ & CDNX Stocks at US$4,000 Gold
Contributed Opinion

1. Stewart Thomson: I, or members of my immediate household or family, own securities of: GDX. My company has a financial relationship with: None. My company has purchased stocks mentioned in this article for my management clients: None. 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 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?

How best to sum up a very wild week for gold, silver, and the miners?

Well, perhaps the wisest move is not to sum it up at all!

The bottom line: contrary opinion investing isn't just about placing trades. It's also about dialing down the excitement and analysis when the crowd is dialing it up, which is happening now.

Here's a look at the current gold price action:

The high near US$4,400 is significant. It corresponds with the big round number of US$4,000, with GDXJ US$100, CDNX 1000, and with the Australian public lined up in the street to buy gold.

Below that, at US$3,500-US$3,200, sits a congestion zone of significance. Everything between US$4,400 and US$3,500 is basically an air pocket zone. If gold were easing into US$3500, it would be a time to get excited and buy. If gold were breaking out over US$4,400 or dipping into it, that would also be a time to get excited.

For gold itself, now is not a time to be excitedly analyzing the price. It's a time for savvy investors to exhibit substantial patience.

Here's a look at the weekly chart:

In the coming months, it's possible that gold forms a huge bull flag and from there leaps to US$5,000+. If the flag does form, it will likely be accompanied by some potentially explosive news.

Here's a look at the GDXJ chart: 

I suggested buying GDXJ and associated stocks basis gold; gamblers can buy now, with gold trading around US$4,000, and conservative investors should be more patient, waiting for US$3,500, a price that may or may not occur.

Aggressive investors could buy these miners at a gold price of about US$3,800, which represents a number of key Fibonacci retracements.

What about the "raw" juniors? Well, here's a look at the short-term CDNX chart: 

There's a nice bull wedge with a breakout now in play.

Here's the long-term chart, which is quite simply one of the nicest-looking charts in the history of markets: 

A pause at the neckline of this huge inverse H&S pattern was expected, but it could already be over . . . meaning a massive upside breakout is imminent!

Ten baggers will be the norm for a myriad of CDNX and US dual-listed juniors if that breakout occurs.

Here's a look at one interesting play, San Lorenzo Gold Corp. (SLG:TSXV; SNLGF:OTCMKTS):

It's acting immune to the sell-off in gold. New players can buy with an optional stop for some or all of the position just under the 67-cent low.

The company's copper-gold operation is in Chile (note the copper price creeping back up nicely), and the lead directors look solid:

Another interesting South American play is Cabral Gold Inc. (CBR:TSX.V; CBGZF:OTCMKTS):

The chart is absolutely stunning! Stop losses could be used in the 45-cent zone, but the technical action is so firm that investors are unlikely to get stopped out.

What about oil?

U.S. sanctions on Russian oil companies could drive the price higher, and at this point, most U.S. producers are only breaking even . . . making the upside potentially spectacular.

Here's a look at Trillion Energy International Inc. (TCF:CSE; TRLEF:OTC; 3P2N:FSE): 

Look at the mindboggling volume on the stock. A move back to the $2+ highs would make it a hundred bagger. 

Investors who like getting in on the ground floor may want to take a close look at this Black Sea natural gas play.

The world likely ended a 40year deflation cycle in the year 2020 and the new inflation cycle has 35 years to run. Along with AI, gold, silver, and energy (both brown and green) plays look set to become the best performing sectors for decades to come!

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