Gold Miners ETF (GDX)

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The Ord Oracle
By: Tim Ord | September 16, 2020

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SPX Monitoring Purposes: Long SPX on 9/10/20 at 3339.19

Monitoring Purposes GOLD: Long GDX on 7/8/20 at 38.62

Long Term SPX Monitor Purposes: Neutral



The chart is getting a little messy, but turn your attention to GDX/GLD ratio (second up from bottom) and GDX and compare the strength. GDX/GLD ratio made higher highs while GDX made lower high (red arrow). Normally, the GDX/GLD ratio leads the way for GDX; this is a short-term bullish sign. Yesterday, we said "GDX has been consolidating since early August and the Bollinger Bands are starting to pinch, suggesting an impulse wave is not far off. The middle Bollinger Band has turned up, which suggests the next move may be up. The consolidation from early August has retraced just less than 50% from the June low. This suggests the consolidation may be at the halfway point of the move up, which would give a target near 54.00 range on GDX. Silver stocks should outperform gold stocks on the next potential impulse rally. The next impulse wave high may end the rally phase that began at the March low. So the next high could lead to a multi-month consolidation that could extend into next year." Long GDX on 7/8/20 at 38.62.

Tim Ord,

Editor

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