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In the later stages of these “C-level” cyclical bull runs (unfurling within a secular bull run), it often starts to get giddy-gigglyfun, especially with the junior miners, who all begin to pop audibly, like champagne corks, as the end of a run draws near.
Who doesn’t like 8, 9, 10, 11 heck, even 12% moves in one day? Like [[BAA]] today — who’d have thunk it’d raise from the dead after so many weeks of dormancy? I mean, besides me?
That’s not quite right… I didn’t know it would take off today, only that it would within the confines of this cyclical bull run. That’s why I own 20k shares of this and have owned other small miners ( Golden Star Resources Ltd. (USA) [[GSS]] come to mind) in the past. They are, in essence, unexpiring options at these prices.
Here’s [[BAA]] on the weekly chart, finally getting some air off the broken downtrend line:
As you can see there’s a lot of room to grow there.
And here’s Exeter Resource Corp. [[XRA]] which recently spun off a $3 stock [[EXGMA]] , which you’d have to add to it’s current $8 stock price (we bot the consolidated company in the low sixes, remember?). Weekly:
Despite this junior giving birth to another junior, she seems no worse for wear, and in fact, stronger than ever.
Keep an eye on these names and others from the small cap portolio (Rubicon Minerals Corp. (USA) [[RBY]] , Golden Star Resources Ltd. (USA) [[GSS]] , [[EXK]] , etc.) as I have a strong suspicion they will continue to break out to our unending joy and to our enemies great chagrin, for a good piece going forward.
Stay vigilant, and watch [[UUP]] for clues to the immediate future.
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