GDX - miners due to start digging down again

With the main indexes seemingly now completing a wave'2, the mining sector looks set to begin a new down cycle. The lack of QE3 today whacked the precious metals earlier in the day, and this added to downward pressure on the miners.


GDX, daily

GDX, monthly

Summary

GDX remains a great ETF to trade the mining sector. With downside targets of at least $1300 and $22 for Gold and Silver respectively (with Copper, and other metals showing similar % falls), I expect the mining sector to suffer greatly across the next 1-3 months.

First target is a break of the recent low of 39, then a push to 35. Whether we can eventually hit 30..difficult to say at this time.