GLD, the SPDR Gold Shares ETF, was up 1.95%. But it was the mining shares turn to shine. GDX, the Market Vectors Gold Miners ETF, jumped 6.4%. Looking at the top 10 holdings of GDX, we saw some nice gains:
- ABX – up 10.4%
- NEM – up 6%
- GG – up 6.4%
- AEM – up 9.21%
- GOLD – up 5.6%
- AU – up 6.2%
- SLW – up 5.4%
- KGC – up 10.3%
In the April 11th Seasonal Forecaster newsletter, I added a position in Agnico Eagle Mines (AEM), citing the reasons why it made sense to enter at least a small position in gold mining stocks:
“It is time to add a position in a sector showing strong accumulation that is not likely
to go away anytime soon. The price of Gold has rocketed off five year lows set in
December. The volume pattern, volume indicators, and anecdotes from the Gold
market all point to significant accumulation in the precious metal. The Negative
Interest Rate Policy (NIRP) being implemented by an increasing number of countries
suggests fiat money is in trouble. Currency wars may just be beginning, which may
explain why Gold is in demand.”
“In any case, it makes sense to take at least a small position in a sector showing strong
accumulation. Gold stock positions may not be justifiable with seasonal analysis, as
the price of Gold, and the economics of previous metal mining, is often at the mercy
of outside influences. However, Gold does have noticeable cycles, and it is likely Gold
is starting a new longer-term up-cycle.“
This trade is working out well. Our AEM position is up 20.6% in just 3 weeks.
We have a chemical stock currently up 15.1%. And we recently took profits on a Hormel Foods (HRL) position, capturing a 26.5% gain, including dividends. Seasonal and cycle analysis, coupled with appropriate fundamental and technical analysis, regularly produces good higher probability trade candidates.
Of course, there's much more you need to know and many more stocks you can capitalize upon each and every day. To find out more, please click on the following link: www.markettamer.com/seasonal
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Gregg Harris is the Chief Technical Strategist at MarketTamer.com.
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