Just Don't Slip Up Now

We have a pretty textbook bull flag setup on the GDXJ, ETF for junior miners, as seen on the daily chart, below. Indeed, even with the silver metal coming in today it is quite impressive to see money flowing back into the precious miners after their recent consolidation. 

As you can see, the miners have not even suffered a flesh wound on the dip here, which unquestionably has more than a few top-callers in the metals and mining space scratching their heads as to why we have not yet seen the usual smash which has followed each and every rally in the complex in recent memory. 

Simply put, gold bugs need to avoid a relapse of such events. 

A move back over last week's highs, from Monday, May 20sth, obviously is the goal. But so far so good on the consolidation front, gauging the action through today. Once again, a Fed and Treasury "letting" inflation run hot and well behind the curve is typically a wildly bullish spot for the precious metals and miners. So I am still looking for dips to get bought and for new highs to materialize. 

Elsewhere, bulls are going for rotation into yesterday's laggards (e.g. IWM) to compensate for the CRM gap down. This may be mere end-of-month games, but it does not make the action any less choppy, day-to-day.