With the recent slide in the gold sector this seemed like a good time to take a squint at the PDQ Dashboard for some guidance. Now, just as a humble aside, the GDX version of the Dashboard has been a stellar performer over the last year, maintaining a Long position most of the year. The biggest problem with the GDX PDQ has been believing the ongoing bullish entry signals . . but this is the power of the PDQ Dashboard . . intuition is trumped by quant analytics.
As with other PDQ focus ETFs (VXX, TLT, FXE, SSO, XLE and XLF) there are actually several versions of the GDX PDQ, each with a unique set of pair components. Shown above is a model that compares GDX relative to major market sectors. Note that the %R for all pairs is wildly skewed to the GDX side. This is the type of disparity the PDQ can detect and reinforces the consistency and reliability of the Final Signal. Note also that the Target Days values are 3-6 so this as a very short term trading model. The current consensus signal as of this morning’s first hour is OUT but we’ll be monitoring this PDQ closely for a possible consensus Long signal as Z values hit the bands.
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