Gold shares continue to romp higher, and we are fast approaching all time highs. Today's chart and relative strength readings show a slight overbought condition. Have your powder ready if you haven't made an allocation to gold shares yet, and buy any weakness. One significant indicator in our favor here? Bubblevision, not one peep about the XAU so far this week - I haven't heard one commentator or so-called analyst mention gold shares...little if any chit chat on hype-tv. That doesn't mean bloggers such as myself haven't taken notice of what's hot to trot, but it is an extremely powerful underpinning if the herd hasn't been clued in yet. Once bubblevision gets on board, we can expect the additional bid on the shares and perhaps the ultimate breakout. GDX is the ETF to play the miners, and my analysis of their holdings and a break down vis a vis IBD's ranking system suggests core holdings of ABX, AEM, and BVN if you want to play some straight equities. To be clear, those three have high IBD rankings. Others near the top of the list, depending on the day, are PAAS, RNO, & HL. (GDX - the three largest positions are ABX (Barrick Gold) at 14%, NEM (Newmont) and GG (Gold Corp) - are close to 10%) The thesis is to buy the leaders, and the IBD methodology would lead you to them. Good luck.
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