Wouldn’t That Be Cool…

Take a world that’s spinning out of control with debt, money creation and pretty much every other measure of financial danger flashing red.

Add the inevitable (given the above) precious metals bull market, with rising gold and silver taking the precious metals mining stocks – especially the little speculative ones – along for the ride.

Then toss in something new: a brokerage industry – led by trading apps like Robinhood – that has decided to make stock trading commission-free, leading millions of not-very-experienced investors to become trend-following day traders.

And what do you get? The answer is in the following excerpt from a recent  MarketWatch article. See if you can spot it:

If you chose that last paragraph, well done. The junior miners are a notoriously thinly traded and volatile sector. Let them catch the collective eye of millions of momentum traders and there’s no real limit to their upside — or at least to their volatility.

And this may already be starting. Here are the first few entries in a trading account that contains a lot of junior miners (yes, I’m definitely talking my book here), ranked by one-day percentage price gains on Tuesday, June 30.

junior miner gains day traders

Will momentum like this will look tasty to day traders – especially those with no prior experience in this treacherous sector? Very possibly. Or could these stocks have already come to the Robinhood crowd’s attention, with Tuesday’s gains being the result? Either way, the action going forward could be wild, probably with an upside bias.

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