The GDX or Market Vectors Gold Miners ETF seeks to replicate as closely as possible the price and yield performance of the AMEX Gold Miners index. The top ten holdings for this ETF are ABX, GG, NEM, AU, KGC, GFI, AUY, AEM, BVN, GOLD.
For the past several weeks crosshairs members have been discussing both GLD (SPDR Gold Shares) and GDX (and the individual stocks within it) as possible candidates for long trades. Just this past week GDX signaled a long trade on the DAILY chart via my TradeStation® Crosshairs Indicator®. The only issues to consider were possible resistance points from early April, early January, and early December 2009. The January and April resistance areas have been surpassed. The next resistance is the December 09 high around 55.
Since the Crosshair fired on April 23 at 48.21 GDX has climbed to as high as 51.54 before closing Friday at 50.51. Can the bullishness for this sector continue? We shall soon see as a DAILY Crosshair can usually last for days to weeks, depending on many market factors. Right now a weakening general market could upset the gold cart. Since GDX has already moved for several days we will have to see what is in store for the next few weeks.
