While the overall market moves from “most hated group” to “the second most hated group”, etc.,…seemingly dancing on the head of a pin while earnings continue to deteriorate badly, the one chart that continues to get the attention of traders everywhere is GDX (mining ETF).
IF I AM CORRECT, WE ARE AT THE MOST IMPORTANT LEVELS IN 6 YEARS
Assuming we break through the 6 year downtrend line…and we are exactly at these levels now…GDX may experience a parabolic move higher…a compressed move that could send GDX up an additional 70% from todays levels, by year end.
On Wednesday, GDX hit a new 52 week high, then had an “inside day”. Traders used that reversal to take GDX back below the previous days levels. Importantly, should GDX break back through Wednesday’s high price of $23.82, an avalanche of buying should ensue.
This may sound like a short term target/strategy, but combined with a challenge of this 6 year downtrend line, this signals a major move higher…just after we break through $23.82.
Finally, check out the huge volumes of the last few months…it’s clearly signaling huge money flows into the sector. Continue to buy gold, silver and most certainly VRA Buy Rec miners. This move is just getting started…and it will last for years.
Until next time, thanks again for reading…