04Jan10:59 amEST

A Bitcoin Curveball Misses This Strike Zone

While I recognize we seem to be in the midst of yet another crypto craze, allow me to suggest that part of the recent surge and headlines/chatter surrounding the move may very well be due to the holiday stretch for equities, with rare days off and half days, to boot. Granted, a weakening Dollar and politicians revealing just how absurd our system is with respect to fumbling the much-needed stimulus for many Americans probably helped fuel the surge in Bitcoin and other crypto currencies of late (as well as proxy stocks like RIOT). 

But I maintain the holiday period with Bitcoin often sees restless speculators seasonally become more active with cryptos to cure the gambling itch. 

With this in mind, as we discussed in a video last week on this website and with Members, the junior precious miners, below on their updated GDXJ ETF daily chart, are surging more than 6% this morning. Two reasons for our sanguine outlook for the precious complex as noted last week: 1) Silver was outperforming gold, and 2) Junior gold miners in GDXJ were technically outpacing the seniors in GDX. 

Typically, both of those factors are "risk-on" signals for the entire precious complex. 

And so with even the Dollar trying to somewhat stabilize this morning, the gold complex remains hot even with many, many more eyes on crypto. That is just fine by me, as I suspect the fact that gold and her miners can rally in the shadow of a dark alley makes it all the more bullish in due time. 

Going forward, some catch-up plays are on my radar in the gold complex, meaning recent larger cap laggards trying to wake up as we speak. 

Any way you slice it, it is a very promising, albeit very early, sign to see the miners popping to this degree and ignoring the early reversal to to deep red on the Dow. 

Special Edition: Full-Length... Stock Market Recap 01/04/21 ...

 
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