For example, GDXJ has a three-year standard deviation of 44.4%, according to Market Vectors data. GDX’s three-year standard deviation is just under 32%.
“If the ratio would breakout, it would be a good sign for senior and junior miners. Keep a close eye on this index in the next few weeks because where this pattern heads from here should be important for big and small miners,” adds Kimble.
GDXJ/GDX Ratio Chart
Chart Courtesy: Kimble Charting Solutions