Gold Miners Continue To Collapse, Near Term Buy Level In Range
Basic material stocks became popular with the increase in raw material prices due to the strong growth of China from the recent year. Not only directly commodity mining stocks exploded, also supplier of mining equipment started to boom. The basic material sector is a small investment field with around 600 listed companies. I made a list of the best stocks picks for next year. My criteria are:
The Ben Bernanke's comments were just released before he testifies in front of a Joint Economic Committee. It should be noted that gold, silver, and gold mining stocks are declining lower. This tells us all that the Federal Reserve is not looking to implement another quantitative easing program at this time. ...
Earlier today, the major stock indexes were trading sharply lower. The highly followed SPDR Dow Jones Industrial Average ETF (NYSEARCA:DIA) was trading down to the $122.82 level. This afternoon, the DIA is rallying off of the lows to to 124.12 a share. This is still a very good intra-day bounce especially if you happen to be a scalp trader.
GDX: Short term traders should watch for intra-day resistance around the $43.00, and $43.50 levels. Take note, the GDX is still trading below the important daily chart 50, and 200 moving averages, this technical position puts the important ETF in a weak technical position. All of the leading gold mining stocks are holding up very well on an intra-day basis. Most of the daily charts of the gold mining stocks are still very vulnerable to declines after this short term bounce concludes.
Bottom In The Making: Miners Reverse Off Lows Again
For the second time in a week, the miners have reversed off early lows. Stocks like Goldcorp Inc. (USA) (NYSE:GG), Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX) and Yamana Gold Inc. (USA) (NYSE:AUY) are all off their lows, trying to move to the positive side in an ugly market sell off. These stock have all been hammered in recent months, trading at or near 52 week lows.
This afternoon, almost every major stock market index is trading lower on the session. Traders and investors are experiencing a very rare broad based decline. The one sector that is showing strength today is gold and the gold mining stocks. The SPDR Gold Trust (NYSEARCA:GLD) is actually trading higher by $1.88 to $161.25 a share.
This morning, most of the leading gold and gold mining indexes are trading higher to start the day. As you may know, the gold sector has been extremely weak since late February 2012. At that time, the highly popular SPDR Gold Shares (NYSE:GLD) were trading as high as $174.00 a share. Today, the GLD is trading higher by $1.62 to $159.92 a share.
The leading gold mining stocks have been declining lower since February 29, 2011. At that time, the Market Vectors Gold Miners ETF (NYSEARCA:GDX) was trading as high as $57.91 a share. This afternoon, the popular GDX is trading lower by 0.73 cents to $49.90 a share. This leading gold mining ETF is now trading below the important 50, and 200 moving averages.