Last week on Friday the GDX gold stock ETF gave it’s first of two critical buy signal when its daily stochastics overbought/oversold indicator crossed back above 20 to give a buy signal.
And yesterday it gave confirmation with a second and final buy signal when it closed above its consolidation downtrend line by ending the day above $40.00. I talked about this coming buy signal earlier this week Monday morning and it hit.
The result was a 7.15% gain in the GDX in one day Thursday and the start of a new rally that is going to last into the end of the year and beyond.
There was a lot of excitement on CNBC yesterday, because the S&P 500 went up 67 points for a 1.95% gain. That was nice to see, but the GDX went up 7.15%. If you want to beat the market the thing to do is to buy in the top stocks of the sectors beating the market.
And several big cap mining stocks simply soared. For instance look at PAAS, which went up over 12%.
I own both GDX and PAAS, but I actually think my top mining stock pick for this month is going to actually go up more than both of them on this rally. You can read about it here.
Thursday morning I did a video update about the election and the markets. They are rallying, but not exactly like they did in 2016 after Trump won. If you missed this update watch it here.
-Mike
