Whether it’s interest rate cuts and inflationary worries or investor concerns about formerly hot tech stocks, money is moving into gold stocks and REITs. The price charts for both sectors show this clearly and, at some point, actual price movement is more relevant than whatever the reasons are said to be.
Gold stocks and REITs: the price charts.
Take a look at the VanEck Vectors Gold Miners ETF (NYSE: GDX) daily price chart:
The exchange traded fund that holds 60 stocks including relatively large positions in the big cap miners such as Newmont Corp and Agnico Eagle as well smaller positions in less well-known names like New Gold and Centerra Gold.
The fund hit a new high this week after breaking out above the August high, a sign of how eager investors are to own the precious metal equities. This gold miners ETF is since mid-Summer outperforming the Technology Select Sector SPDR Fund.
Here’s the weekly price chart for the VanEck Vectors Gold Miners ETF:
The price is just now touching the previous resistance level of just above $40 from April 2022. Note that the 50-week moving average crossed above the 200-week moving average in July 2024 (it’s red circled).
The monthly chart for the VanEck Vectors Gold Miners ETF is here:
That red-dotted line at the $43 level may be the next target now that the fund has a weekly closing price above the 2022 high. The red dotted line near the top indicates the level of the 2011 high, just under $60. The crossover of the 50-month moving average above the 200-month moving average in early 2024 is red circled.
REITS are having a good run as well. Here’s the daily price chart for the Real Estate Seclect Sector SPDR Fund:
From the mid-April low to the present is a gain of more than 30% in five months, making this another fund now outperforming the Technology Select Sector SPDR Fund. The 50-day moving average appears to have crossed above the 200-day moving average in late 2023, an early signal of the coming strength.
The fund has 31 equity holdings including ProLogis, American Tower, Equinix and Public Storage.
The weekly price chart for fund is here:
The red circle indicates the spot at which the 50-week moving average seems about to cross above the 200-week moving average. The next level of resistance is the April 2022 high of $47 and then there’s the resistance above that from late 2021 at just under $48, where the red-dotted line appears up at the top of this chart.
Here’s the real estate fund’s monthly price chart:
The almost relentless uptrend from 2010 was interrupted briefly only in early 2020 and again from mid-2022 to early 2024. The fund has not spent too much time below the 50-month moving average and the 200-month moving average is steadily upward.
No artificial intelligence was used in the writing of this piece.
More analysis and commentary at johnnavin.substack.com.