This is a Canadian priced ETF that tracks the junior gold companies. Recently in May, we had another bottom, after which we see a small wave heading north. Some key wave counts were broken in the last little while, and what we have now is a potential, “ABC” zigzag crash in Minor degree. That would make a nice setting for a 5 wave run to play out.
There is a big difference in the physical size of these waves compared to the 5 waves that started back in early 2016. This would be alternating patterns between the A5 waves and the C5 waves in a zigzag. We have very little downside room left before it breaks the “B” wave bottom in Intermediate degree. If everything holds, then we are looking at a potential “C” wave bull market, which can be very dynamic. It can fool around and produce a short wave 3, but then add on an extended 5th wave.
Any “C” wave bull market is one of the best places to be, but these corrections can keep us fearful, thinking that it is going to plunge much further. Too many people spend their time in trying to guess how far any asset class can still fall, instead of looking at it, on how high it can go. Yes, we have differences in pattern between all the gold stock ETFs, but none of them show signs of being extremely expensive when we use gold as money.
ZJG opened a little gap as it started, so there could still be a bit of back filling.
I think that ZJG can still double from this months low prices, but it sure will not happen overnight, as it may take the rest of the year to unfold. I don’t have too many Gold/Zjg calculations, but we are sitting at 148:1, which is compressed a bit from 2017 readings.