Gold Miners ETF Should Outperform S&P
Commodities / Gold and Silver 2010 Feb 16, 2010 - 11:06 AM GMTBy: Mike_Paulenoff
With gold prices up sharply this morning, let's have a look at the relative strength relationship between the Gold Miners ETF (GDX) and the S&P 500 Cash Index ETF (SPY). My pattern and ROC (rate of change) analysis of the relationship between the GDX and the SPY indicates strongly that the GDX has completed a corrective period versus the SPY and has turned up into an approaching period of relative outperformance.
In a rising price scenario, the GDX should climb faster and more powerfully than the SPY, while in a weak overall market the GDX either will climb or hold up considerably better than the overall market. Newmont Mining (NEM) and Barrick Gold (ABX), with earnings this week, are the two leading components of the GDX.
Sign up for a free 15-day trial to Mike's ETF & Stock Trading Diary today.
By Mike Paulenoff
Mike Paulenoff is author of MPTrader.com (www.mptrader.com), a real-time diary of his technical analysis and trading alerts on ETFs covering metals, energy, equity indices, currencies, Treasuries, and specific industries and international regions.
© 2002-2010 MPTrader.com, an AdviceTrade publication. All rights reserved. Any publication, distribution, retransmission or reproduction of information or data contained on this Web site without written consent from MPTrader is prohibited. See our disclaimer.
Mike Paulenoff Archive |
© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.
