After a generally rough and tumble 2013, gold bugs must be galvanized by the price action on Wednesday. We know silver was up by more than 6%, and the 3x long gold miner ETF NUGT shot up 27.5%.
But as far as the GDX, the main ETF for gold miners, is concerned, perhaps the most pronounced aspect of Wednesday’s action was that the ETF saw its largest day of volume on record. Granted, they have rebalanced the ETF. However, the takeaway is that when you combine the high buy volume with the fact that price had pulled back to a well-defined support trendline, below, at a minimum there is no doubt we have a clear level against which to trade.