Digging the Miners

Precious-metals miners are littering my breakout scans this morning. There was a huge reversal in metals late last week and it has carried over into the miners. Some folks may caution you not to chase as every breakout has failed, but here's the nice thing about the miners: They have a well-defined bottom. Buying just about any miner comes with a neon sign pointing to the lows of December as your stopping point. Granted, this can vary widely from stock to stock as some have come off their December bottoms more than others have. But what does matter is the bottom is clearly defined. You can buy into any of the big miners and have a good idea of what you are risking.

The junior miners are a bit tougher, but the concept should be similar. My only concern with smaller names stems from liquidity in both the shares and the companies. It feels like a fundamental issue specific to a small company could crush one of them. I would have nothing against a junior miner exchange-traded fund like the Market Vectors Junior Gold Miners (GDXJ)....144 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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