by Adam Hamilton
The gold miners’ stocks just rolled over into a correction, raising concerns about the staying power of their massive post-panic upleg. These higher prevailing gold prices have driven very-strong fundamentals at the gold miners. But they are entering the seasonally-weak summer doldrums. And current sentiment and technicals play major roles in governing when uplegs remain healthy or ready to give up their ghosts.
The GDX VanEck Vectors Gold Miners ETF remains the leading and dominant benchmark for this small contrarian sector. Its $14.3b in net assets this week were a colossal 33.2x bigger than those of its next-largest 1x-long major-gold-miners-ETF competitor! GDX’s only real rival is its little-brother GDXJ mid-tier gold-miners ETF, which is only about one-third of GDX’s size. The GDX gold stocks have sure had a wild ride.