Better Than Avocados, Gold From Mexico

Nothing particularly impressive with this company exploring for gold in Mexico. It has some strong hits, but wll see more dilution befoe they finishing drilling out a resource. The chart is great though. It has finally cleared long-term resistance line one, and is not far from the horizontal at 17 cents. What's best is this stock was July 2024 warrants that exercise at 14 cents, already in the money trading at only 6 cents. If this stock can get to 30 cents in a gold bull market (the chart tells me it can) or higher, then the warrants will deliver about 2x the return of the underlying. Warrants will deliver 5x if MEX can get to 45 cents, the stock will be up 3x.

Can Lead Gold Miners

Roscan is looking strong here. Breakout line is at 55 cents, stock is outperforming the broader gold mining sector. They have been reporting strong hits from their drilling program. Stocks that are strong during the corrective phase in the market are good candidates for even stronger outperformance during the first wave of a sector breakout, if not longer.

Chart Going Critical

Centrus Energy. The company entiches uranium for nuclear power plants. A nice base and coming up on both hironztal and downward sloping resistance. Also, going back to 2013-2014, this horizontal saw two explosive moves up and one down. I strngly suspect this will have an explosive move through both resistance lines when it comes. The Global X Uranium ETF (URA) has a similar base, similarly right at horizntal resistance. There is considerable downside risk, support is down around the $10 area if this turns into a topping pattern.


There's some short-term resistance at 11 cents, and there's some resistance around the 12 area, but after that it is wide open. Group Eleven Resources. There are illiquid shares trading under GRVLF on the OTCBB. Must use limit orders and be patient there.

I have a large position in this one after more than tripling my exposure last week. I first heard about it via Jayant Bhandari.

The Mother of All Bearish Charts

All markets trade with a high degree of correlation these days, with some positively and others negatively correlated. One of the stranger correlations has been the Japanese yen and gold being positively correlated. The U.S. dollar, measured by U.S. Dollar Index and the broad trade weighted dollar index, remains the most important. DXY has weakened since the summer though, the Chinese yuan has strengthened. Nothing looks good. The one possible exception is the absolutely monster of an inverted head-and-shoulders pattern on the Japanese yen. If this pattern ever completed, it would require USDJPY climbing past 125, a gain of about 17 percent from here. The measured move is to 175, a gain of more than 60 percent for USDJPY from here. I thought a breakout was possible in a dollar bull market because, as the chart makes clear, USDJPY hasn't been part of the bull market since 2015.

A bullish interpretation is that the yen has been a risk-off currency at times. USDJPY rose during the 2000s expansion. Perhaps a bullish turn in USDJPY heralds the expansion everyone is waiting for. The bearish view is that the yen migth start paying the price for being the global leader in quantitative easing.

If the yen goes, no monetary authority is large enough to stop it. Above 125 and there's no central bank that can save the yen. First, there's the rseistance at 107, which it looks to be testing rigth now. There were 3 false breaks of resistanc in the past year. The pattern turns very bullish for yen if USDJPY slides below 99.

I dub this the mother of all bearish charts right here because the bear case is evaporating by the day, but this chart opens the potential for a shocking reversal of fortune if it were to be the first domino in a broad U.S. dollar rally that eventually puts the kibosh on a technical bear market. If the biggest shock since 1931 is coming, this will be one of the first signals.