Gold Miners ETF (GDX)

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The Ord Oracle: GDX Update
By: Tim Ord | April 27, 2022

SPX Monitoring Purposes: Long SPX on 3/25/22 at 4543.06.

Monitoring Purposes GOLD: Long GDX on 10/9/20 at 40.78.

Long Term SPX Monitor Purposes: Neutral.



The top window is the Inflation/Deflation ratio. Last week, it closed above its previous 2020 high, suggesting a breakout. Right after that high, it tumbled the next four days, creating an "upthrust" and suggesting a consolidation is starting. If the Inflation/Deflation ratio starts a consolidation, so will the XAU (GDX). As pointed out in yesterday's report, the pattern that may be forming on XAU is a head-and-shoulders bottom where the head is the October low. Head-and-shoulders patterns have symmetry both in time and price. The Left Shoulder formed over 5 months and suggests the Right Shoulder may take as long; it could complete in the October or November timeframe. Still a bull market, but sideways action over the next 5 or 6 months is possible.

Tim Ord,

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