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A mixed market in the near-term for the junior mines

Clif Droke JMSR snippet
Mar 31, 2005

Below is an extract from Clif Droke's latest Junior Mining Stock Report

We're switching our focus from the 30/60/90-day moving averages (which are subject to volatility whipsaws) to the more reliable 10/20/30-week moving averages for trend-smoothing and analytical purposes.

There is still a lot of overhead supply to contend with in many of the stocks (noted for each stock) which means the consolidation process isn't quite over. However, some stocks are showing signs of technical improvement and the prospects for the cyclical spring rally are good for these stocks in question (noted in the stock section below).

As the headline indicates for this newsletter, it's a mixed market out there with the net effect being a trading range for the overall sector. This is due in part to the recent short-term bottom in the U.S. Dollar index (which was underscored by a recent front-cover edition of Newsweek magazine with its bearish cover story on the dollar -- a contrarian bottom signal for the near-term). The range-bound market looks to continue for the foreseeable future for the stocks noted below, although there are still a few upward trending stocks in the sector and a growing list of potential turnarounds.

I note with interest quite a few junior mining stocks that show positive divergences in their MACD indicators relative to price. This shows an improvement in internal strength and sets the stage for a possible turnaround this spring for these stocks in question.

Lots more follows for subscribers, you can subscribe to the Junior Mining Stock Report here.

--Clif Droke
email:
clif@clifdroke.com
website: http://www.clifdroke.com/

Clif Droke is the editor of several other subscription services including:

1) The Momentum Strategies Report, a combined forecast and analysis of U.S. stocks and indices and international precious metals stocks. Sent via e-mail Mon, Wed and Friday, also published online. $144/yr.

2) The Gold Strategies Review, a monthly forecast & analysis of gold and silver futures and precious metals stocks. Published online. $200/yr.

3) The Durban Roodepoort Deep & XAU/HUI Report (a.k.a. The DROOY Report) for traders, published online every trading day by 7pm. Aimed at serious day and short-term traders of Durban Deep and followers of the XAU & HUI index. DROOY Subscribers are billed monthly $50/month.

Clif Droke is also the author of numerous books on finance and investing.

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