GDX - VanEck Gold Miners ETF

GDX is mentioned as a basket fund to play the gold miners, but Felix warns that miners carry operating leverage and business risks. He prefers to keep miners as a smaller slice than physical gold.

Mining stocks like Homestake dramatically outperformed the Dow during the Great Depression when gold was repriced, suggesting gold miners are a key hard-asset play.

He is short gold miners because they overran resistance, and he cites the Newmont disparity as a red flag. He took some profits on the short today but still holds a position and expects further downside to first major support.

On the same chart, Gareth says he would buy GDX as a swing trade at the first major support level, though he hasn't pulled the trigger yet. This is a conditional plan to go long on a further pullback.

Miners have run up more than gold, hitting Fibonacci retracements and gap fills; a pullback in gold should cause a larger percentage drop in miners. He is short the miners.

Gold's uptrend remains intact; if GDX breaks out above $110.40, keep watching it to the upside.

Gold miners are doing very well and consistently ranking near the top; when gold rallies, gold miners go way up.

Gold miners offer leverage to gold prices and GDX provides diversified exposure to a basket of miners instead of single-stock operational risk. Gold is positioned higher, though a pullback is possible after last week's surge.

Four-factor confluence at resistance (gap fill, extension move, ascending trend line, 0.618 Fibonacci retrace) suggests a short-term pullback; he is short GDX.

Gareth is starting to short GDX as a swing trade, calling it a 'great shortable opportunity' for a quick trade.