Tommy Humphreys | Oct 07, 2015 12:15AM ET
The gold miners (Market Vectors Gold Miners (NYSE:GDX)) have rallied ~15% in the last three trading sessions and as measured by percent above its upper Bollinger® Band, GDX is just about as short-term overbought as it has ever been:
GDX (Daily)
What does this mean? Well, judging from recent history it means that GDX is within 1-2 days of a sharp downturn, similar to the last couple of times that GDX dared to rally above its upper Bollinger Band (late-August and May).
However, perhaps this time is different and the goldies have finally bottomed after a brutal 4+ year bear market which has seen the sector lose more than 80% of its value. While we can’t know the future, there are more signs than usual that this time might really be different:
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