By Andrew Nyquist
Gold (GLD) is taking it on the chin today, and as a consequence, the Gold Miners (GDX) are getting bludgeoned. Not a huge surprise here, as the Miners have significantly underperformed Gold since the top in Sept 2011 (see chart 1 below). The general washout is not a surprise either, as the charts had been weak for a while (see my April post “Precious Metals a Mixed Bag“).
Be that as it may, this washout will likely create “tradable buying opportunities.” In fact, I have been picking at the Gold Miners (GDX) today. Note that GDX is nearing the 50% fib retracement of the 3 year up move from October 2008 lows to September 2011 highs. 40-42 zone “should” provide some support (see chart 2).