A Look At GDX, 2008-2016 Review

 

GDX-June-29-2016

 

I would rather do long term wave counts on an index than an ETF, but I think the gold bear market needs another look, with a set of diagonal wave hunting glasses.  From the 2011 peak, gold stocks started an ugly decline which was extremely difficult to fit into an impulse. With the word impulse, I mean the perfect impulse waves, where we get at least 80% of it looking real good, otherwise it would be a diagonal 5 waves.  

We have to grade the 5 wave sequences into great or poor. The GDX decline is a “poor” excuse for an impulse wave and therefore I have to look for all the diagonal waves.  Diagonal waves are counted out using the ABC1, ABC2, ABC3, ABC4 and ABC5 labeling method.  

There is still no way to be sure, but I have not heard about massive insider selling, so even with an impending correction we should eventually see higher gold stock prices. I follow Steven Jon Kaplan on Twitter and I know he tracks insider selling and maybe he will be a nice guy and Tweets when he has his gold stock ETF’s, sold. He may also release his information on his free blog, when the time comes. 

It was in June 2013, when insiders were doing their most intense gold stock buying, which has not been countered  with intense insider selling.  Even though GDX has many gaps below they may stay open for years to come.