Markets Update: Rotation in the PM Complex Signals New Opportunities.

Several weeks ago, we began to see a subtle change in leadership within the PM complex. Both SIL and SILJ, which had been lagging pretty badly, started to show some life, and this week they made their presence known.

We also saw the juniors and micro-cap stocks catching a bid. With most of the PM stock indexes down pretty hard today, the CNNX actually was up after completing the backtest several weeks ago.

Below is the clean version of the weekly chart for the CDNX, which shows the double inverse H&S bottom. I have been suggesting that we could see some reverse symmetry to the upside over the same area on the way down, as shown by the black arrows. So far, it’s playing out nicely.