Chart usGOLD   Chart usSILVER  
 
Food for thought
The central bank system is the greatest scam ever perpetrated on an ignorant public. The eternal enemy of every central bank is... Gold
Richard Russel  
Search for :
LATEST NEWS  :
MINING STOCKS  :
Subscribe
Write Us
Add to Google
Search on Ebay :
PRECIOUS METALS (US $)
Gold 1299.40-2.92
Silver 19.62-0.03
Platinum 1437.204.45
Palladium 797.50-1.25
WORLD MARKETS
DOWJONES 16412-12
NASDAQ 410216
NIKKEI 144180
ASX 544532
CAC 40 442722
DAX 938668
HUI 2220
XAU 910
CURRENCIES (€)
AUS $ 1.4809
CAN $ 1.5206
US $ 1.3838
GBP (£) 0.8229
Sw Fr 1.2184
YEN 141.4160
CURRENCIES ($)
AUS $ 1.0704
CAN $ 1.0987
Euro 0.7227
GBP (£) 0.5948
Sw Fr 0.8805
YEN 102.1910
RATIOS & INDEXES
Gold / Silver66.23
Gold / Oil12.46
Dowjones / Gold12.63
COMMODITIES
Copper 3.040.01
WTI Oil 104.310.55
Nat. Gas 4.50-0.03
Market Indices
Metal Prices
RSS
Precious Metals
Graph Generator
Statistics by Country
Statistics by Metals
Advertise on 24hGold
Projects on Google Earth
Updating the HUI-SPX Ratio
Published : November 12th, 2012
399 words - Reading time : 0 - 1 minutes
( 0 vote, 0/5 ) Print article
 
    Comments    
Tweet

 

 

 

 

There were reasons for the mind numbing gold stock correction out of the hysterical events of the 2011 Euro-led meltdown and its aftermath. Take your pick...

 

  • Too many lousy gold mining operations not keeping on top of costs and/or execution projections.

 

  • Too many scammy smaller operations doing little more than issuing stock and telling stories needed to be weeded out.

 

  • Over bullish sentiment was that this time the gold bug true believers really were going to take Hamburger Hill as Europe's implosion would be taking down the rest of the civilized world.

 

  • Highly strategic yet indirect manipulation of the gold miners' product - a barbarous relic not welcome in an economic discussion by today's monetary policy setting intellectuals - by a very overt (publicized) manipulation of the Treasury yield curve in Operation Twist. I will spare you another chart of gold's correlation to the curve.

 

There are more reasons, but now is a time for planning for what comes next. Not crying over spilled nuggets.

 

A lot of damage was done to the ratio of the HUI Gold Bugs index to the S&P 500. So where are we now?

 



We are at a 'W' bottom that formed with a lower right side of the 'W' while MACD (along with other indicators not shown) made a weekly bullish divergence. That's good, but more needs to be done.

 

The green shaded area shows the middle of the 'W' that should hold as support as the ratio bull flags with a downward biased consolidation. Yet this is really not a great looking picture as the moving averages have turned down more noticeably than at any point in the bull market out of 2000 thus far.

 

Is that a negative? Could well be, if we are going to go by unbiased TA signals. But if on the other hand that bullish divergence and the extended bottom ('W') making process is implying pent up energy, then the out performance of gold stocks over regular stocks could be stunning.

 

My work on the macro economic fundamentals - updated most weeks in NFTRH, hint hint - says this is a very viable course. Regardless, if that thick red resistance zone is surmounted along with the moving averages, your head is going to spin watching the gold sector [re]assume leadership.

 

The last couple days of short-term out performance have been fun. But the real work begins now.

 

 

 

Tweet
Rate :Average note :0 (0 vote)View Top rated
Previous article by
Gary Tanashian
All articles by
Gary Tanashian
Next article by
Gary Tanashian
Receive by mail the latest articles by this author  
Latest comment posted for this article
Be the first to comment
Add your comment
TOP ARTICLES
MOST READ
TOP RATED
MOST COMMENTED
Editor's picks
RSS feed24hGold Mobile
Gold Data CenterGold & Silver Converter
Gold coins on eBaySilver coins on eBay
Technical AnalysisFundamental Analysis

Gary Tanashian

Gary Tanashian is the editor or www.Biwii.com
Gary Tanashian ArchiveWebsite
Most recent articles by Gary Tanashian
4/2/2014
3/31/2014
3/26/2014
3/26/2014
3/20/2014
All Articles
Comment this article
You must be logged in to comment an article8000 characters max.
 
Sign in
User : Password : Login
Sign In Forgot password?
 
Receive 24hGold's Daily Market Briefing in your inbox. Go here to subscribe or unsubscribe.
Disclaimer