Gold Star For GDX – Take Profits

Time to Take Profits in GDX (Gold Miners).

Our trading guru, Diego, says the fantastic run on the miners in last few weeks needs to take a pause after hitting our 1st target at the 200mda.  

In fact, yesterday the GDX (quote) moved decisively through the 200mda before settling back.  

After a 30% move from Christmas with a 9d RSI reading of 72 (highest since Sept 2012), it's time to take profits or sell outright.

Similar to the LOWS in late December, volumes are expanding.

Meanwhile, Gold the metal will see its first set of DEMARK SELL SIGNALS on Tues. with a "9 SELL".

For those who don’t know Tom DeMark's work, he is considered one the most respected market timers on the street with a client list that is a dream team of savvy hedgefunds.

DeMark Analytics LLC tends to key on key exhaustion points and inflection points in markets, stocks, bonds, you name it.  

These signals can be powerful.

While we are believers in the miners trade in 2014 and have articulated this both in this space and on Fast Money, the first pass of the 200mda is often a place to pause and pullback, especially since it hasn’t been there for a year.

Chart of the GDX showing move from December lows and elevated
RSI