Tuesday, November 26, 2013
How to do intermarket analysis: GDX and GDXJ
Here's two charts for you:
In the past few days GDX:GLD has borkened down below the support line.
In the past few days, GDXJ has also borkened down through the support line.
But in the past few days, GLD has only done this:
It hasn't broken its end-June support, and over the past few days amazingly the price of gold has held constant.
So I guess what I can take from this is that while gold's not collapsing, the people who own GDX and GDXJ are selling everything they can, indiscriminately, so that they can be completely out of the miners before the end of the year.