Gold Miners ETF (GDX)

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The Ord Oracle
By: Tim Ord | March 27, 2018

• SPX Monitoring purposes; Long SPX on 3/22/18 at 2643.69.
• Monitoring purposes Gold: Covered short GDX on 3/21/18 at 21.86 = gain .073%; Short on 3/6/18 at 22.02.
• Long-Term Trend SPX monitor purposes: Long SPX 3/14/18 at 2749.48.



On bullish GDX runs, the GDX/GLD ratio outperforms GDX and that is not happening here. You can notice that the GDX is holding above its previous lows where GDX/GLD ratio falls below its previous lows, showing GDX/GLD ratio is weaker than GDX and that is a bearish sign for GDX.
Not all indicators work all the time and this could be the case where GDX/GLD ratio is not working. The bottom window is the 50 day average of the Up Down Volume for the Gold Miners index which looks at the bigger picture. Readings above “0’ are bullish and below bearish and current reading is -3.14. On the next window up is the 50 day average of the Advance/Decline for Gold Miners index. Readings above “0” are bullish and below bearish. Current reading is -7.96. The market could be setting up for a one more plunge before staring its major trend higher. Still neutral for now.

http://www.talkmarkets.com/content/us-markets/the-market-rally?post=170862

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