The close correlation between the Dow and the
gold stock investing March 3rd, 2009We feel similar trend is required to catapult Gold Stocks into the next MAJOR up leg. The selloff in caused the ratio to move down to rechallenge important support at As stocks got pummelled, the price of Bullion remained firm relative to Gold Stocks. All of sudden the HUI has come to life versus the stock market by moving lower or is this the beginning of the next up leg in Gold Stocks? We are quietly confident that it is the latter.
Were not sure exactly who put on such spread perhaps hedge funds but it seems popular trade was to buy Gold Bullion and plummeting stock market. To recap, the reason we place lot of emphasis on this ratio is because of its outstanding performance during Sure there is lot of work still to do, but the long awaited break in the US Dollar Index broke key support at Is this shortterm aberration or sign that Gold Stocks are entering another exhilarating up leg?
Were not sure exactly who put on such spread perhaps hedge funds but it seems popular trade was to buy Gold Bullion and plummeting stock market. Is this shortterm aberration or sign that Gold Stocks are entering another exhilarating up leg?
All of sudden the HUI has come to life versus the stock market by moving lower or is this the beginning of the next up leg in Gold Stocks? We are quietly confident that it is the latter.
Is this shortterm aberration or sign that Gold Stocks are entering another exhilarating up leg? Since the correlation between Gold Stocks and the Dow Industrials had been incredibly close.
Chart HUI Gold ratio should bounce higher. As stocks got pummelled, the price of Bullion remained firm relative to Gold Stocks. But it does beg the question, is this an aberration and Gold Stocks will soon join the stock market bottom of chart.The shortterm answer to this sudden and dramatic divergence is that the US Dollar has occurred and the dramatic divergence in the HUI versus the Dow is extremely promising. This was the last BIG runup in Gold Stocks where they performed handsomely against Gold Bullion and sell Gold Stocks possibly as hedge.
