I'm not sure about gold stocks intentions. They have been
awful performers for the last year+ and have not shown any signs of
outperforming the $SPX. If this is another head and shoulders
top like we had in 2008, this could jump the creek soon and head
much lower. Reason I say this is that the broad market looks
in need of a multi-day (week/month?) correction and if the GDX
underperformance continues, that would mean a much bigger sell-off
in store for GDX. Maybe more relevant now is to watch a
GDX:$SPX ratio chart? Wait for a sign of relative
strength?
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GDX buy opportunity approaching ?
Posted by atlantis on 14th of Mar 2012 at 02:03 pm
Hi everyone.
Last time GDXwent this low, it provided a good buy opportunity. It bounced off the lower trendline.
Will history repeat itself ? Matt, how to make sure this time we don't buy at support and see GDX go lower ? Go to 60 mins charts ?
Thanks,
Atlantis
I'm not sure about gold
Posted by kalinm on 14th of Mar 2012 at 02:23 pm
I'm not sure about gold stocks intentions. They have been awful performers for the last year+ and have not shown any signs of outperforming the $SPX. If this is another head and shoulders top like we had in 2008, this could jump the creek soon and head much lower. Reason I say this is that the broad market looks in need of a multi-day (week/month?) correction and if the GDX underperformance continues, that would mean a much bigger sell-off in store for GDX. Maybe more relevant now is to watch a GDX:$SPX ratio chart? Wait for a sign of relative strength?