Gold Miners – GDX
Elliott Wave Plus subscribers caught this most recent bounce in gold mining stocks. Did you?
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It has been difficult to find bargains in stocks since mid-2020. The P/E Ratio for the S&P has been hovering in the mid-40’s for months on end. Historically, P/E ratios this lofty are rare, and tend to lead to major corrections. On the other hand, the market has been moving up with only a very few brief and shallow dips since the March 2020 low. Shorting the market has been a losing proposition for over a year now. How does an investor/trader find underpriced stocks to buy in this environment?
This has been our challenge at Elliott Wave Plus, and we have alerted subscribers to several buying opportunities in undervalued sectors on the verge of ripping higher over the past year. We posted YouTube videos of a couple of those timely alerts.
The first was our call to buy XLE (the large cap oil companies) in late October 2020. (See the post and video here). XLE more than doubled over the following 4.5 months. At the time that we made that call, famous talking heads on financial propaganda TV were vehemently recommending avoiding the sector. The second was our call to buy stocks in the shipping sector in early November 2020. (See the post and video on the shipping sector here.) Many, many stocks in that sector have more than doubled since then as well. In both examples, the sectors were at exceptionally low junctures after being beaten down for an extended period, and almost no one was talking about them.
In this post, we will show you another sector buying opportunity that we pointed out to subscribers in late March of this year. GDX (the Gold Miners ETF) has been up as much as 16+% so far since our mid-week (March 31) EWP ScreenShot (for Basic Plan and up subscribers) suggested an imminent turn to the upside. That suggestion that GDX would rally came after the precious metals sector endured seven long months of downside chop. Many of the companies in this recently neglected sector have been nicely profitable all through that multi-quarter correction, so bargain valuations have been easier to find here than in most other sectors.
The question is, does this rally have legs, or is it already done? There are many technical aspects we are actively looking at for clues, including a potential bullish 1-2-1-2 wave count from the early-March low, combined with the expectation of future peak and trough dates based on Hurst cycle analysis. We keep our subscribers aware of our projected future roadmaps on GDX in addition to many tradable items with EWP ScreenShots of our analysis every Sunday and Wednesday (Basic Plan), as well as a multi-hour weekly Sunday video (Pro Plan), excerpts from which were used to produce the YouTube video featured in this post.
Also shown in the attached video is a potential trade signal and associated multi-indicator setup produced by our proprietary momentum algo on GDX. Our Premium Plan provides screenshots and automated momentum trade signals on twenty popular items every night. Many of our subscribers use these nightly signals as confirmation of our proprietary analysis based on a combination of Elliott wave and its associated Fibonacci price targets, as well as Hurst cycle analysis.
Miners Coverage GDX
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Thanks for reading.
– Sid Norris & Andrew Norris
We offer a number of subscription levels. Some are mostly about future roadmaps based on a combination of Elliott Wave and Hurst Cycles, and others are based on automated algos. Sid presents his Elliott wave counts, which include integrated Hurst cycle analysis on over one hundred trade-able items for subscribers (Basic Plan & up) every weekend. He sends out updates on the most popular of those items every Wednesday. Crypto and Premium Plan subscribers receive algo screenshots nightly, as described in prior blog posts. Sid’s unique approach is well worth considering, especially if you’ve never experienced wave labeling and associated Fibonacci price targets that are derived in harmony with independent Hurst cycle analysis. Here’s more info about subscribing.
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“Sid, you continue to yield remarkable results – your silver analysis has been nothing short of spectacular this year and I have made enormous profits this year thanks to it. Booked another huge silver profit ( this time short ) based on your perfect analysis. God has blessed you my friend with great wisdom- thanks for sharing it with others !” – J.F
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