by Adam Hamilton
The gold miners’ stocks are wavering, frustrating traders. For the better part of a half-year, this sector has neither broken out nor broken down. Instead it has mostly ground sideways since the last upleg’s peak. Gold stocks being mired in a consolidation so long, even a relatively-high one, is steadily eroding bullish sentiment. That ups the odds it will roll over into a correction, especially considering gold’s situation.
Last summer the gold stocks were rocking, with the leading GDX VanEck Vectors Gold Miners ETF just soaring. Following gold’s decisive bull-market breakout to its first new highs in several years in late June, GDX blasted 29.0% higher over the next 2.5 months! That generated great bullishness, capping a larger 76.2% upleg over 11.8 months. The major gold stocks dominating GDX were becoming belles of the ball.