by Adam Hamilton
Zeal LLC
The gold miners’ stocks entered this young new year with a bang, as their leading index surged to a major breakout above multiple key resistance lines. That really strengthens the technical case that gold stocks’ next bull-market upleg is underway. This sector has been carving a textbook-perfect series of higher lows and higher highs since late November now, forming a young upleg. Those usually mature to massive gains.
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 the American gold-stock ETFs! GDX is traders’ go-to destination when looking for gold-stock-sector portfolio exposure. And its popularity is growing after last summer’s magnificent upleg.
After getting sucked into March’s COVID-19-lockdown stock panic with gold, GDX skyrocketed 134.1% higher over the next 4.8 months!