Negative confluence for Gold Miners ETF

The big picture of the Market Vectors Gold Miners ETF (NYSE: GDX, Stock Forum) argues strongly that the price structure has additional downside ahead that points to a test of the Jan-Aug support line, now at 35.65. The juxtaposition of price, the RSI, and MACD at this point looks to me like the GDX is vulnerable to considerably more downside than 35.60. In fact, I am expecting a test of the July low at 34.05, the success or failure of which will determine if the GDX will head for 30.00 thereafter. The combination of a correction, in general, in equity prices, a stronger dollar, and relatively weak commodity prices form a potentially extremely negative confluence for the GDX.

ABOUT THE AUTHOR

Mike Paulenoff

Mike Paulenoff is author of the MPTrader.com (www.mptrader.com), a real-time diary of his technical analysis on equity markets, futures, metals, currencies and Treasuries. He does not hold positions in securities mentioned in this article.

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frankseles

...Mortgagedeliquency rate hits all time high... $23.7 trillion dollars? Where was the Congressional appropriation forthat? This is blatantly unconstitutional folks. We'retalking about nearly double the nation's GDP in debt commitments andmore than 33 times the amount authorized by Congress. Oh, and it gets worse:

frankseles

$23.7 trillion dollars? Where was the Congressional appropriation for that? This is blatantly unconstitutional folks. We're talking about nearly double the nation's GDP in debt commitments and more than 33 times the amount authorized by Congress. Oh, and it gets worse: Meanwhile, Barofsky's office has opened 35 criminal and civil investigations into issues including suspected accounting fraud, securities fraud, insider trading, mortgage servicer misconduct, mortgage fraud, public corruption, false statements and taxes. That's right, we have 35 criminal investigations connected to this nearly $24 trillion dollars of largesse too, and that's only what Mr. Barofsky knows about. Anyone care to gander about what's hidden from him? Oh wait - we got a problem there too: "Treasury’s continued unwillingness to provide basic transparency despite the many recommendations of SIGTARP and Congress and the repeated demonstration that meaningful data from TARP recipients can be

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