Tuesday, July 17, 2012

GDX Mechanical System comments

This is a chart of the BPGDM, Bullish Percent Gold Miners Index, it has been on a sell signal since June 21st, currently the trade is up 8.3%.  The system will remain on a sell signal until the BPGDM crosses back over the 5 day MA.  Our other mechanical system for GDX based on a Renko chart also remains ona  sell signal.


Gold and gold stocks remain very weak as deflationary forces in Europe and China continue to plage these markets.  Also the lack of a QE 3 from Benanke and the Fed is causing weakness.  Please see my recent newsleters for my in-depth discussion on the gold markets as well as my longer term views.  

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