Always consider hidden risks
Gold Miners Bullish % Index: At Zero ?
 August 10 ​( From Stockcharts  )
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The Situation

​​​​​The main technical indicators like the moving average of the Bullish Percentage
​Index of the Gold Miners Sector are turning with very little bullish conviction
​ever as shown by the chart below.

That % indicator on Gold Miners Stocks is reaching again a
​level atthe 0% treshold like in November and December 2014.

The 7 DMA ( Day Moving Average ) turned lower on May 14, indicating weakening
​sentiment for the Gold Miners Sector ​as you may see ​in the chart below...

When that 7 DMA will turn upward, we can expect a correction within the Gold
​Miners Stocks as history suggest - December 2014 as an example...

The GDM ETF reached the lowest price level ever ( on August 5 at 360.54 ).
​And on a relative basis compare ​to the Mighty SP500, it is the cheapest ever...

At the time the ​​Bullish Percentage Index of the Gold Miners Sector reached below the 25% zone, it broke the Support Trendline of a Falling Wedge as shown by the second chart below.

We are near a dead cat bounce but long term players will wait ​​that we re back above the 50 DMA now at 463.47 Gold Miners Stocks ETF (GDM). ( Bottom Chart - 50 DMA - Red Trendline )​

In fact, the GDM ETF is a Macro Reverse play of the US Dolllar Index (DXY) as shown by the third chart below.​​

Gold Miners Bullish % Index: At Zero ?  $GDM, $GLD #Trading #gdm #gold
SP500 Gold Miners Bullish % Index ( Top Panel - Dots - Red Line )
7 DMA ( Blue Line )
GDM ETF ( Bottom Panel )​​
Gold Miners ETF ( GDM - Red Line )
​US Dollar Index ( DXY - Black Line )