GDX update 06/01

GDX: Sometimes its helpful to provide and update when there’s nothing to really update as the charts have not improved and when Elliot Wave, once again, can’t really come to the rescue because price is just one big overlapping mess. Then we simple resort to the technicals and find in this case that price is below ALL simple moving averages (SMAs), from the 20d to 200d and is thus in a short to long term down trend. Until this thing breaks back over the 200d SMA, there’s really nothing to get enthusiastic about. I don’t see a clear bottom or price target low due to the continued mess and failure of the MACD to make higher highs. Instead it’s all lower highs. I know Avi Gilburt and others are all Bullish about Gold and the Gold miners, based on Elliot Wave Theory, but they have been Bullish for 2 years now… to no avail.  I am not Bullish until I see price do what it needs to do: break higher and at a minimum move back above the 200d SMA. KISS!! Until then… No bueno. Me no touch it.

I am neither a fan of Elliot Wave in these type of circumstances and find it a failed method for assessing this type of price action. There are times we as chartists and analysts must know when which tool does not do the job. EWT is currently one of does. Hence, watch the 200d SMA for further clues.

GDX daily