The following is the chart for the Market Vectors Trust Gold Miner ETF, ticker GDX.
The GDX closed essentially flat in Monday's trading, flip-flopping between positive and negative results throughout the day. What is concerning in my mind is that, unless more demand comes into the ETF, that there may not be enough juice to get it up and over the swing point established on February 29, a price point around $55 and benchmark volume over 34 million shares. Currently, the ETF is trading into the March 5, 2012 price point with 12.99 million shares trading hands versus 13.54 shares on the earlier date. This suggests that traders are getting tired and the ETF is likely to pull back. I would note that as of this writing, the per ounce price of gold is trading down by more $10 according to Bloomberg. If this decline holds at tomorrow's open, expect weakness in the precious metal miner shares.
The GDX closed essentially flat in Monday's trading, flip-flopping between positive and negative results throughout the day. What is concerning in my mind is that, unless more demand comes into the ETF, that there may not be enough juice to get it up and over the swing point established on February 29, a price point around $55 and benchmark volume over 34 million shares. Currently, the ETF is trading into the March 5, 2012 price point with 12.99 million shares trading hands versus 13.54 shares on the earlier date. This suggests that traders are getting tired and the ETF is likely to pull back. I would note that as of this writing, the per ounce price of gold is trading down by more $10 according to Bloomberg. If this decline holds at tomorrow's open, expect weakness in the precious metal miner shares.
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