The markets again managed to surprise many observers this week. $SPX turned around from a close below the 200-day moving average and gained 2.41%, while QQQ closed at all time highs. The resilience of this bull market is undeniable and investors are exhibiting appetite for risk.
GDX is not that oversold according to MACD, but it does appear that the gold miners are approaching some sort of a selling climax (the Bullish Percent Index ($BPGDM) is at only 3.33%) so I would not rule out a short covering rally of some sort in the near term. Again, GDX is a bearish security, so I am not even going to try to pick bottoms, I would rather wait for a rebound to go short again. If/when GDX becomes bullish; I will reverse my thinking and start looking for buying opportunities.
live GDX chart
Best Regards and have another great trading week!
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Alexander Berger (www.MasterChartsTrading.com)