Gold Miners ETF (GDX)

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>>> GDX Rally May Fail <<<
By Tim Ord | March 27, 2017

• SPX Monitoring purposes; Long SPX on 3/24/17 at 2343.98.
• Monitoring purposes Gold: Sold GDX at 24.33 on 2/22/07 = gain 20.15%; Long GDX on 12/28/16 at 20.25.
• Long Term Trend monitor purposes: Covered short SPX on 3/24/17 at 2343.98: Short SPX on 1/13/16 at 1890.28



The third window up from the bottom is the GDX/GLD ratio. Normally this ratio leads the way for GDX. Recently, GDX/GLD ratio made a lower high as GDX made a higher high and a short term negative divergence. This condition suggests GDX rally may fail. The top window is the RSI for GDX/GLD ratio which is hovering around the 50 level. Readings above 50 shows GDX/GLD ratio is in an uptrend and bullish and below 50 in a downtrend and bearish. The RSI for the GDX/GLD ratio has been hovering near the 50 range and not showing strength and a bearish sign. The bottom window is the On Balance Volume for the GDX/GLD ratio which just hit a new short term low suggesting GDX/GLD ratio may weaken more. If GDX/GLD ratio weakens so should GDX. A pull back for GDX is still possible short term. Timer Digest has us ranked #1 in performance for gold over the last 12 months. Sold GDX at 24.33 on 2/22/17 = gain 20.15%; Long GDX on 12/28/16 at 20.25.

http://www.talkmarkets.com/content/us-markets/gdx-rally-may-fail?post=129186

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