Wednesday, 24 February 2016

GDX - wild day for the miners

With Gold catching another fear bid in the morning, the related mining stocks surged, with GDX breaking a new multi-month high of $19.85. Yet.. with the market recovering, Gold rapidly cooled, with the miners seeing a rather powerful reversal, briefly turning negative, with GDX settling +1.0% @ $19.11.

GDX, daily


Suffice to add, Gold/Silver look set to cool into mid March.

If correct, the related mining stocks look vulnerable to a decline of at least 10/15%.

Worse case for GDX... the mid $15s.... but from there... primary upside to $25/26.

*I'll strongly consider picking up GDX in a few weeks... although long Gold - via GLD, would be a primary trade.