The miners...GDX and GDXJ

As a quick follow up to the GOLD post, GDX and GDXJ are underperforming badly today. Apparently even a bullish Barrons article from this weekend cant help todays weak action.

The daily chart of GDX is kind of choppy but taking a look at the weekly chart below and we can see that the 200week moving average (currently $47.50) is providing some resistance for now. And until that changes, GDX is likely to underperform both on an absolute basis and a relative basis. So if you are looking for stocks to lighten up on in your portfolio or use for short exposure then you can add these to the components of the XLE and XOP recently mentioned. Once GDX closes back over the 200week then its possible the weakness from the peak of September 2011 will start to change but until then, stay the WEAK course.