As a refresher, I put quite a bit of emphasis on a tried and true long term stock purchasing guide that is described in post "Long Term Investment Trading signal".
Gold miners after CRUSHINGLY punished for years I believe hit a bottom in January 2016 for years to come.
Since then miners exploded up over 250% from low to high this year, and recently had a tear-your-face-off pullback. Does that mean gold miners are dead? Hardly.
Lets take a look shall we?
Notice the weekly SMA is still on the upswing, and the downswing for GDX has held above the 50 weekly SMA. This was a brutal, but normal pullback.
What stocks to consider? Depends on your risk-to-reward.
Lets assume GDX hits 35 by march...
GDX/GDXJ - lower risk, ETF across miners (major/minor) Profit ~50%
Call options on GDX for far out, I purchased 20 GDX calls for March 2017 strike 23.
Risk: very high, options can go worthless. but if GDX hits 35 by then, will be a 500% profit.
Another way to get higher % with somewhat less risk than stock options is buy stock in the sector that is cheap and therefore potential higher % returns
TGD - 0.48 a share, was $3 in 2013
NAK - 0.60 a share, was $12 in 2008 & 2011.
GSS - 0.78 a share, was $4.50 quite a bit between 2004-2011
some that have already run...maybe more
HMY in september 2015 was 0.82, now $3
AU in september 2015 was 6.60. now 13.70
AGI in september 2015 was 4.50, now 7.70
There are quite a few runners if you look.
My hope is this next push up, those that did not run up before will now.