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Friday, January 01, 2010

Sam Collins calls Buy on GDX

link

Market Vectors Gold Miners ETF (GDX) -- This exchange-traded fund (ETF), which attempts to replicate the price and yield performance of the Amex Gold Miners Index, is in a bull market with the bull market support line at $44 and the 200-day moving average at $42.



This has been a very successful trading stock for the "Trade of the Day." After initially recommending traders take a half position, our last comment on Nov. 4, with the stock trading at $46.64 was, "A full position could be initiated below $40. The trading target remains unchanged at $50 to $55."

The stock didn't pull back to $40, but did run to $55.40.

Now GDX appears to be in buying range again after a healthy round of profit-taking and a reversal off of its major bull market trendline, coupled with a stochastic buy signal.

The trading target, for GDX is $52, but crises or renewed inflation could result in much higher prices.


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