A longer term view of the 20 month moving average on mining stocks suggests that a new bull market is well underway. This moving average has not only been recently retested but is rising as in previous bull markets. The negative sentiment extreme reached several weeks ago is providing the fuel for this first leg higher.
As you can see in the video, it’s much more likely that the mining sector is seeing the first leg of a new bull market, and not a bear market bounce, as many pundits are claiming. This is great news for gold mining ETFs, which we’ve highlighted below.
The Market Vectors Gold Miners ETF (NYSE:GDX) rose $0.28 (+1.21%) in premarket trading Monday. Year-to-date, GDX has gained 10.52%, versus a 1.44% rise in the benchmark S&P 500 index during the same period.
The Market Vectors Junior Gold Miners ETF (NYSE:GDXJ) rose $0.57 (+1.54%) in premarket trading Monday. Year-to-date, GDXJ has gained 17.31%, versus a 1.44% rise in the benchmark S&P 500 index during the same period.
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