GDX, Gold Stock Review

 

GDX-Aug-12-2016

 

This gold stock bull market has run up dramatically with any big corrections. We have had some smaller ones which is good, but for the first 3 months there were virtually no corrections to even count out. These initial fast waves up, can be  “A” waves  or the “A” waves in a diagonal move.  For this bull market to keep going, GDX would have to touch the top trend line one more time.  This GDX gold stock bull market, is also riddled with gaps, which does not indicate any secular bull market lasting decades.

I also show a “Head” which would be the Head to a much bigger H&S pattern. So there are many things to watch, to give us an early warning if this gold stock bull market is getting ready to die. 

The most important indicator I have is the Gold/gdx ratio. I’m calculating this 2-3 times during the week, and today it is about 42.83:1 or just shy of 43:1 once we round it up. This is creeping up to the expensive side, for this gold stock ETF, but it may still have to go vertical, before this bull market will die. The gold/gdxj ratio is at about 26:1, which makes it on the expensive side as well.