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It was a strange week last week, as nearby December Gold gained ground finishing at $593.60, up 9.20 for the week while the performance among senior mining companies was quite mixed. For the XAU, last week saw a gain of +2.04 or 1.70%, with the index closing at 125.81, while at the same time, the Amex Gold Bugs Index, the HUI, ended lower by 5.18 index points or 1.72%. On balance, it appears that mining stocks remained soft, despite some firmness and improvement in the price of bullion. As a result of the inconclusive action in the majors, smaller cap mining issues drifted lower with the FSO Junior Mining Index ending at 233.04, down 2.72 index points or 1.15% from the prior weeks reading of 235.76. For the FSO Junior Mining Index, the 50 day average ended at 249.38, with the 200 day average at 244.65. 50-day & 200-day Moving Averages
Among the FSO Sub-sectors, the Junior Producer Index ended the week at 248.38, down 5.70 index points or 2.24% from the prior weeks close of 254.08. On Friday, the FSO Junior Producer Index ended below its 50 day average at 272.70, with the 200 day average at 266.23. Elsewhere among the Small Cap FSO Indices, we note that the Junior Development Index also ceded ground, ending at 642.93 down 22.36 index points from the prior weeks value of 665.29, with the 50 day average at 642.93, and the 200 day average at 665.29. In addition to the downside action in Producers and Developers, the FSO Junior Exploration Index also declined for the week, ending down 2.47 index points or 1.96% to finish at 124.03 down from the prior weeks reading of 125.60. For the Junior Exploration Index, the 50 day average ended at 126.50 with the 200 day average at 117.18. Producer Companies
Development Companies 
Exploration Companies
Finally, as is the case with the larger cap Seniors, Junior Gold are also now heavily oversold with the Medium Term ARMS Index for the FSO Junior Mining Index ending the week above 1.40 and the Medium Term A/D Line ending below .80. In both cases, these types of readings have been highly indicative of developing medium term lows, and in that vein, we should be thinking that a more important low is close at hand. That’s all for now, Frank
Financial Sense Junior Gold Index Archive *Please note that the individual companies in this index are proprietary and will not be disclosed due to compliance and regulatory issues resulting from the relationship of FinancialSense.com, Puplava Financial Services, Inc., Registered Investment Advisor and Puplava Securities, Inc. Member Firm FINRA/SIPC. |
