Friday 28 June 2013

GDX - a horrific June for the miners

Despite a daily closing gain of 7%, the Gold miners ETF of GDX still declined 17.3% across June. GDX is incredibly now getting close to the collapse wave lows of 2008. Monthly trend still remains dire, and there really isn't any sign that the miners have yet floored.


GDX, daily



GDX, monthly


Summary

The Gold mining ETFs are very much looking like the charts for Gold/Silver, and that is arguably very appropriate.

Trading volume in GDX - and indeed GLD/SLV has exploded in recent months as traders have started to chase/jump aboard what remains very strong downside momentum.

At some point this nightmarish decline will come to an end, but frankly, that could still be another year or two away.

Best case, the miners level out towards the latter part of this year, and then build a secure floor across 2014, before beginning a new secular bull market - along with Gold/Silver.