The Bull Market Adjustment Trade

One of the most important skills for a junior mining speculator to possess is the ability to identify character changes in stocks that precede significant bullish trends

During the decade long bear market from 2013 to 2023 it was usually a shrewd move to take some profits when a junior mining stock had a big jump in share price. After all, the TSX-Venture Composite fell roughly 60% during this period, and many individual stocks fell by more than 90%.

Rallies had an overwhelming tendency to be short-lived, prompting speculators to pounce on every uptick in liquidity, hitting bids hard and eventually sending stocks to new lows. However, even during a decade long bear market there were plenty of examples of junior mining stocks that bucked the downtrend and generated spectacular shareholder returns (Arizona Mining, Great Bear Resources, Corvus Gold, GT Gold, etc.).

For speculators to be able to take full advantage of the most bullish stocks that generate the biggest returns, they need to be able to identify the character changes that signal that this stock could be different from the rest.