Gold Miners ETF (GDX)

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The Ord Oracle
By: Tim Ord | November 6, 2019

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SPX Monitoring purposes: Flat.

Monitoring purposes GOLD: Long GDX on 1/29/19 at 21.96.

Long Term Trend SPX monitor purposes: Sold long-term SPX on 10/24/19 at 3010.29=gain 1.49%; Long SPX on 10/14/19 at 2966.15.



We showed this chart yesterday, but this one goes back 7 months instead of one year like yesterday. Back then, we said “[t]he second window down from the top is the GDX Advance/Decline Percent with a 50 day average. This indicator has been useful for reversal in GDX when there is a divergence. A divergence showed up at the late March and September highs where GDX made higher highs and Advance/Decline Percent made lower highs. The next window down is the GDX Up Down Volume percent with a 50 day average. This indicator works the same as the GDX Advance/Decline percent; when there is a divergence the market is nearing a reversal. Last week GDX produced a test of a previous high of the previous week. This test produced a higher high on the Advance/Decline percent as well as the Up Down Volume percent, showing the market is stronger on the second high and a bullish divergence. According to both indicators GDX should move higher short term.” NEM earnings came out today and missed their estimate; stock fell nearly 4%. NEM represents 11.26% of GDX holdings. The internals for GDX look generally good. We don’t have it shown, but the Bollinger Bandwidth is setting at a four-month low, suggesting a trending move in GDX is not far off. The pattern that appears to be forming on GDX is a bullish “Falling Wedge.” This pattern has an upside target to where the pattern began, which in this case is near the 31.00 level. Long GDX on 1/29/19 at 21.97.

Tim Ord,

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