Top ten holdings in the Index as of April 30th
Requirements for inclusion in the Index
GDX - currently on a sell signal. Prices are approaching 200ema support where we will be watching for a BSBS, may take a while as base building is necessary after such a steep decline.
Our subscribers are familiar with the $GDM index, it is our "chart of the year". We've been tracking this index simply because neither the $HUI nor $XAU represent PM stocks justly. The breakout on this multi year "cup with handle" has very bullish implications for the long term. However, it is quite possible that the breakout point at 800 could be tested sooner or later, which is still over 20% below current prices.
This new ETF fills the void for precious metal stocks investors and traders. Well diversified and more accessible than a fund, it is excellent for short term trading as well as investing. It has a higher beta than the $XAU but lower than $HUI. The timing of the debut is unfortunate, and volume clearly is lacking at this point. There are tradable options but volume is non existent so far. GDX is now on our roster of funds and ETFs, watch and wait for the next signal.
Jack Chan at www.traderscorporation.com
24 May 2006