Getting Down to Business

To update this blog post from Wednesday, gold and its miners, as well as silver, are acting more like winners than losers. After an apparent weak open this morning, buyers did not put their collective heads down and complain, mope, and point fingers. Instead, they rose to the occasion and showed some heart, buying the dip and never looking back. The real test is going to be whether GDX, the senior gold miner ETF, can give us a weekly close above $18.70. On the 30-minute timeframe, below, note that after bouncing off the 2008 crash lows (lower horizontal light blue line), price is now over the multi-week resistance line (upper horizontal light blue line). The measured move of the pattern (yellow line, potential inverse head and shoulders bottom) is over $21, provided that we get that close over $18.70 to end the week. Gold bugs still need to make more progress to demonstrate they are newfound winners in a newfound bull or even sharp bear market rally. But today's action, and indeed much of what we have seen in the past week or two, is at least a step in the right direction. _______________________________________________