Gold Bugs Index Breaking 13 Year Support
The AMEX Gold Bugs Index is breaking 13 year monthly support line (1) in the chart below, dating back to 2000. We also provide an inset of the same chart on a weekly basis – it appears as if it’s…
Trade Idea in Gold Miners
I think it’s time to be short this group. Referring back to this post from July 21, we noted the potential for a repeating pattern in the Arca Gold Miners index. In that post, we noted the index could bounce…...
Miners Appear Poised for Further Out-Performance vs. Gold
The chart below plots the ratio of the Arca Gold Miners Index vs. Gold. As you can see, early in 2012 the ratio hit extremely over-sold territory which has typically led to strong bounces whereby miners out-perform the metal itself…....
On a Relative Basis, Gold Miners Face Resistance
The chart below plots the ratio of Arca Gold Miners Index vs. the SPX. From 2001 to August 2011, the ratio rose to 1.60 from ~0.15. This means gold miners as a group out-performed the SPX by a factor of…
Did Yesterday’s Open-Ended QE Announcement by the Fed Usher in a New Reflationary Wave?
The chart below shows the SPX on a weekly basis. Line (1) represents what we believe to be the market/economy’s most important line in the sand since 1987 – an on/off switch if you will. Why? This line is where…
Gold Miners Breaking Out
The chart below highlights the AMEX Gold Bugs Index. This index is now following the previous break-out in gold as it pushes above trend-line resistance dating back to its 2011 highs. For more detail on the potential upside in gold…
Can Gold Now Target $3,000 With Miners Out-Performing on the Ride Up?
Back in the saddle, finally. I apologize for being away so long. Regardless, prior to stepping away, I had begun to shift our focus toward metals and away from equities with the thought being that the best trading opportunities were…...
Time to Pay Attention to the Swiss Franc? Sniffing out More Global CB Intervention? About to Cause a Precious Metals Rally?
First chart is the Swiss Franc alone. Note that it’s approaching long-term support line (1) in the 0.98-0.99 area. Also note that this is 50% Fib retracement support. Also note that it is along line (1) where, for whatever reason,…...
Repeating Pattern in the Arca Gold Miners Index at Hand
The Arca Gold Miners index appears to be completing a repeating pattern whereby the index tops out in a rounded reversal into a decent decline and then finds horizontal trend-line support. At such support the index has historically bounced materially…...
Price Action Suggests Gold Miners in a Down-Trend/Bear Market; Next Stop ~15%-20% Lower?
There aren’t many places to hide these days. Short of bonds, the USD, staples, utilities and bio-techs, it’s tough to find favorable price action in much of anything. This is true too for the Gold Miners Index, presented on a monthly…...