GDX - the new ETF for precious metals stocks
The much anticipated and much needed new ETF for precious metals stocks has finally debuted on 5/22, without much fanfare. In fact, there is very little info on the web. Reason is obvious, gold bulls are not in a celebratory mood these past few days. Our Canadian subscribers have been blessed with access to a PM stock ETF for a few years now, the XGD.TO is an excellent trading vehicle for us. Now US subscribers also have easy access to the gold and silver sector without owning a basket of stocks. GDX is not the same as GLD, which tracks the price of gold and not gold stocks. For those who are unfamiliar with GDX, here is the run down:
Top ten holdings in the Index as of April 30th
Requirements for inclusion in the Index
GDX - currently on a sell signal. Prices are approaching
200ema support where we will be watching for a BSBS, may take
a while as base building is necessary after such a steep decline.
Our subscribers are familiar with the $GDM index, it is our "chart of the year". We've been tracking this index simply because neither the $HUI nor $XAU represent PM stocks justly. The breakout on this multi year "cup with handle" has very bullish implications for the long term. However, it is quite possible that the breakout point at 800 could be tested sooner or later, which is still over 20% below current prices.