Is Gold the New Manolos! Gold Stock ETF Soars, But Will It Last?

Golden Girl (and Golden Stocks)

Darling New York is buzzing and not just about the latest Valentino sample sale. The VanEck Gold Miners ETF or GDX for those of you who speak fluent Wall Street is up a staggering 52% this year! Fifty two percent! That's like finding a vintage Chanel bag at a thrift store... except way more complicated. It makes you wonder: could this be bigger than Mr. Big?

Head and Shoulders Knees and Toes...and Breakouts!

Apparently GDX has been plotting a major 'bullish inverse head and shoulders pattern' since well probably before I even knew what a stock was. It broke out in March and if it stays above the 44 level (which sounds suspiciously like my old address on the Upper East Side) it could hit 64. At this rate GDX might as well be strutting down Fifth Avenue in a pair of Manolos – all eyes are on it.

Gold Fever: More Than Just a Fashion Statement

Of course this whole gold rush is tied to you guessed it actual gold. Gold made new all time highs in January 2024 and hasn't stopped shining since. Makes you think doesn't it? Maybe I should ditch the Cosmos and invest in some bullion. After all a girl's gotta eat... and pay rent... and buy shoes.

When is Enough Enough?

But here's the catch my dears. Even the sparkliest diamonds lose their luster eventually. GDX is up seven straight days – a 25% jump! That's like dating a hot new guy who's *too* into you. Suspicious right? The analysts are whispering about a potential 'overextension.' Translation: a pullback is coming. Like a bad breakup after a whirlwind romance. You've been warned!

The GDX GLD Dilemma: A Relative Relationship

And then there's the whole GDX versus gold situation. Apparently GDX has been underperforming gold since 2006. It's like dating a guy who always lets his ex girlfriend win at Scrabble. Long term they're supposed to move in the same direction but the odds suggest gold will reclaim its strength. Can we say relationship issues?

Trading Floor Cocktails!

Speaking of sparkling if you are a CNBC Pro subscriber (are we even friends if you aren't!) they are having an exclusive in person CNBC Pro LIVE event at the iconic NYSE on Thursday June 12. A great opportunity to network with CNBC experts talent and other Pro subscribers during an exciting cocktail hour on the legendary trading floor! You had me at cocktails!