How are the gold miners doing? Let’s have a look at Market Vectors ETF GDX. Here’s the Primary Indicator on the daily chart:

Look at the indicator in the oval. It turns down just after May 6^th (arrowed) and goes through the lower green line. In this situation, for the stock to turn positive, the indicator has to either make a higher low (not the case) or the Secondary Indicator has to break zero twice. Here’s the Secondary Indicator:

You can see the sell point (black arrow) and the two crossovers of zero (green arrows). The second crossover comes June 5^th, which is the buy point. You can see the Primary Indicator is now above the upper green line and there have been no zero crossovers of the Secondary Indicator so the GDX has further to run.

But (don’t you just hate that, just when you gold bugs thought you were free and clear!) I have not included the weekly charts where the Primary Indicator is not even above the zero line yet. We are only into the first upswing of the Secondary Indicator so we have a few weeks to run.

Just as an aside, when I open my charts, the very first indicator I check is the Advance Directional Index (ADX) which I have set at 18. In the case of GDX it’s trending above 20. If the ADX is trending I don’t even look at my main momentum indicator (slow stochastic). Momentum indicators will stay in overbought/oversold territory until ADX changes from trending to trading range.