Dow plunges below 10,000 as Wall St. slide goes on – What about gold? May 25, 2010
Posted by Marlowe Cassetti in GDX.trackback
The stock market sank to its lowest levels of the year Tuesday, sending the Dow Jones industrials below 10,000 as investors feared that even Europe’s painful debt-fighting measures will not contain the crisis.
The Dow fell more than 250 points in the minutes after the opening bell and spent most of the day under 10,000. It recovered somewhat and was down about 80 in late afternoon. The average has fallen nearly 12 percent in the past month.
Besides the financial crisis in Europe, investors were reminded that political issues, such as tension between North and South Korea, can threaten economic growth. Analysts said the unresolved Gulf of Mexico oil spill contributed to the foul mood. (market commentary & photo courtesy of AP News via Yahoo Finance)
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As my readers may recall, RSI picked Market Vectors Gold Miners ETF (GDX) a few weeks ago. Today, gold touched $1200/oz and may be signaling renewed interest in the metal. Let’s take a look at chart of GDX:
It was up a strong 2.73% today, reflecting good investor interest. On the plot relative to the general market (highlighted by the violet trendline), it shows strong performance over the past two months. I’m tempted to add to my position, but I have to think about that.
No RSI signals for tonight. Catch you later.
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