VanEck Vectors Gold Miners ETF (GDX)
By Tue, Feb 25, 2020
Hey everyone,
We’ve been trading defensively for weeks now, and yesterday you saw why.
We saw a huge sell off, with the Dow tumbling nearly 1,000 points before finishing down 227. The Nasdaq fell 1.8% and the S&P tanked 1.1%, and the VIX fear gauge jumped 9.8%.
Fortunately, we’ve been going after bonds and shorting stocks, so yesterday should have been a good day for you if you’ve been trading along with our Chart of the Week updates.
Today, while everyone is recovering, we’re mining for profits and going long in Gold.
Specifically, the Gold Miners ETF (GDX).
If price breaks $31, the previous resistance, we are LONG, with a price target of $40-$41.
GDX is coming out of a major base here (some of my friends call it a Kardashian bottom) that’s taken place over many years.
That’s the build up of demand that should take gold mining stocks much higher.
So, we are in above $31 for a quick $10 profit here as everyone turns to gold as a safe harbor.
Until next week.
Good trading,
JC Parets
About the Author
JC Parets, founder of All Star Charts, specializes in finding the most opportunistic risk vs. reward propositions while at the same time bringing a top/down approach to the marketplace whose wide spectrum is rivaled by few. JC begins with a long-term global macro perspective and then works his way down to the individual sector and industry level before ultimately isolating the stocks that best portray a particular thesis. Price is the most important technical indicator, but JC uses supplements such as Momentum, Relative Strength, and Fibonacci analysis to complete the process.
