I’ve been drawn to some of the more speculative momentum plays in the junior mining companies when I start to see many breakout plays like these showing up on my scans. Some of my recent suggestions in the Canadian markets have scored 30-50% gains this past week alone and if the $TSX can breakout of into multi year highs it looks like this area could be a great area to focus more attention to.
The one hurdle that this index faces is it may have gone too far too fast and need some time to consolidate for a few weeks to maybe a month before breaking out to new yearly highs. But it doesn’t take a technician to see which of these two markets you should be focusing more attention on. Another point to consider is if the gold market has a pullback (which I have a feeling there is far too much bullishness in this area) that could pressure the $TSX as well.
These plays are starting to look a little frothy, and it will be important to see how they behave when they give back some of their gains. I would add some of the below stocks to your watchlist and monitor them for good entries.
http://screencast.com/t/NDhiZTQ2ZDI (copy and paste into browser)
