If the stock market would happen to head lower in price, where would
be a good place to hide? Another question could be, what area that has
done poorly could be acting better?
The table below looks at the S&P 500, Bond ETF (TLT) and Gold Miners ETF (GDX) over the past 2 months.
CLICK ON CHART TO ENLARGE
As
you can see the hard hit Gold Miners ETF (GDX) is acting a little
better than the broad market and TLT over the past two months. Of course
one can not say this about GDX over the past few years, as miners have
not done well at all.
The chart below looks at GDX over the past
nine years. The GDX decline over the past few years has taken it back to
the financial crisis lows it hit in 2008, where it could be creating a
“W” bottom and higher lowers taking place, with momentum doing the same
(creating higher lows).
CLICK ON CHART TO ENLARGE
A
little bit of positive price action in GDX of late, does NOT prove that
its bear market is over with! For GDX to do well going forward, the
first step is for it to breakout from this short term pennant pattern
and push higher!
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