by Adam Hamilton
The gold miners’ stocks are rallying on balance again, following their recent multi-month correction. For several weeks now they’ve been carving both higher lows and highs, which sure appears to be forming a nascent uptrend. That increases the odds a new bull-market upleg is getting underway in this high-flying sector. While still dependent on gold’s fortunes, plenty of technical evidence supports a new-upleg thesis.
The leading and dominant gold-stock benchmark and trading vehicle is the GDX VanEck Vectors Gold Miners ETF. As of the middle of this week, GDX commanded nearly 2/3rds of all the capital deployed in gold stocks through all American gold-stock ETFs! GDX’s remarkable price action this year continues to boost its popularity among traders. The major gold stocks GDX contains more than doubled in mid-2020!
Like everything else, the gold miners’ stocks got sucked into mid-March’s extreme stock panic spawned by government lockdown orders attempting to slow COVID-19’s spread.