Gold Miners ETF (GDX)

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DP Alert: Gold Sentiment Very Bearish
By: Erin Swenlin | May 1, 2019

The Dow flipped to a new PMO SELL signal on Monday; today, we saw the SPX and NDX join in. These are just more signs that the market is angling for a pullback or correction. We saw climactic readings on the VIX and breadth; additionally, the discounts on Sprott Physical Gold Trust are the highest we've seen in some time. Sentiment being contrarian, this is bullish for Gold...

IT Trend Model: Neutral as of 4/16/2019

LT Trend Model: BUY as of 1/8/2019

GOLD Daily Chart: We haven't seen discounts this high since November. I have marked turning points that occurred when we saw similar readings. The PMO is trying to get a BUY signal as well. The head and shoulders pattern is still in play, but barely. It appeared the pattern would execute when the neckline was penetrated, but price rebounded. We don't have a decisive breakout or breakdown yet. Note that high discount rates can persist. While the chart looks pretty decent, that pattern still bothers me.



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