On a long term basis, Gold mining stocks, US Treasury Bonds, and gold, are outperforming The S&P 500 Index. As usual, the reporters on bubblevision aren’t covering this. Instead they have OCD over the latest gimmick from “the social network”.
We can see on the Gold Miners Index (GDM) (GDX) chart, Weekly lookbacks, major S/R (Support and Resistance price reversal) from February, at the $662.10. To continue Bullish, we want to see it close over, on a Weekly and Monthly basis.
So this thing certainly is not on the Bullish Trend List.
Trend following the sell-off, The Gold Miners Index $GDM $GDX is testing another S/R (Support and Resistance Price Level) at $576.60. So this thing certainly is not on the Bullish Trend List. When it returns to a trend in excess of, or at a minimum of, 10% annualized over 200 days ma, it’ll be back on the Upward Trend List. This index is one of 20 we monitor.
The Gold Miners Index (GDM) (GDX) continues to break S/R (Support and Resistance Price levels) on a Weekly and Monthly Basis. The next Price Reversal below is at $568.10, trading at $581 today. The short term oscillators such as The RSI are oversold. So, we’ll if a BTD (Buy the dip) develops.
Gold Miners Index (GDM) (GDX) the Index is breaking long term support. The Monthly and Weekly S/R (Support and Resistance Price Level) is $598.50, currently trading intraday at $593.62. The Index today is trading under 10% annualized growth rate, over 200 days, but over 5%, over 200 days.
Trend following The Gold Miners Index (GDM), in a strong long term Upward trend, stronger than the S&P 500 Index (SPX), the next Monthly Bullish S/R (Support and Resistance Price level) is found at $661.90. So those already long, will look to nibble some more, and those not long may look to establish a new position at a close over the March High. There are various ETF options, such as the $GOAU. So as usual, all the trend following best practice ideas remain the same, multiple positions, small position size, stop out when your risk parameter is hit. A starting trend following portfolio could be the $GOAU, and the $SPY.
way outperforming the S&P long term, this ride may be “on hold”
The Gold Miners Index has been outperforming The S&P 500 Index long term. Looking at 32 Weeks, Weekly, we find a major S/R (Support and Resistance Price Level at $598.50( which happens to be The Month Of March Low), trading today before the close at $612.80. A close under $598.50 would signal the Uptrend is probably broken, or at least it will start trading weak relative to the S&P. So we’ll see what happens this week. For the newbs, gold miners can be extremely volatile, both Up and Down. Small position size allows the investor to ride the draw-downs, and sleep at night. These things drive The Lo Vol crowd crazy.