The VanEck Vectors Gold Miners ETF (GDX) just sent up a relatively rare bearish signal, if recent past is prologue. According to Schaeffer's Quantitative Analyst Chris Prybal, 50-day cumulative buy-to-open (BTO) options volume hit 1 million contracts on the exchange-traded fund (ETF) last week -- something that's happened only one other time on record.
Specifically, GDX's 50-day cumulative BTO options volume hit seven figures for four straight days: Feb. 23-28. Prior to that, you'd have to go back to July 11, 2016, to see volume of that magnitude. And after that signal, it was downhill for GDX. The ETF went on to log a two-week drop of 3.1%, and was down anywhere from 10.2% to 23.1% from two months to six months out.
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