• 477 days Will The ECB Continue To Hike Rates?
  • 477 days Forbes: Aramco Remains Largest Company In The Middle East
  • 479 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 878 days Could Crypto Overtake Traditional Investment?
  • 883 days Americans Still Quitting Jobs At Record Pace
  • 885 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 888 days Is The Dollar Too Strong?
  • 889 days Big Tech Disappoints Investors on Earnings Calls
  • 889 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 891 days China Is Quietly Trying To Distance Itself From Russia
  • 891 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 895 days Crypto Investors Won Big In 2021
  • 896 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 896 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 899 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 899 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 902 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 903 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 903 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 905 days Are NFTs About To Take Over Gaming?
How The Ultra-Wealthy Are Using Art To Dodge Taxes

How The Ultra-Wealthy Are Using Art To Dodge Taxes

More freeports open around the…

Another Retail Giant Bites The Dust

Another Retail Giant Bites The Dust

Forever 21 filed for Chapter…

Is The Bull Market On Its Last Legs?

Is The Bull Market On Its Last Legs?

This aging bull market may…

  1. Home
  2. Markets
  3. Other

Another Stroll Though Time w/ the HUI-Gold Ratio

This is just a friendly reminder about how bloody important it is for the HUI-Gold Ratio (HGR) leading indicator (to the precious metals sector) to maintain its higher lows status.

ui-gold 2hr
Larger Image

Yesterday the goons apparently attacked 'paper gold' (according to sources who stand on guard for this stuff) after the HGR had become weak. A pleasant thing happened however, as the HGR did not buy the take down in nominal gold. 2 Hour chart above.

gr daily
Larger Image

Thus the critical higher low to last summer's low remains in place despite a savage day yesterday. Daily chart above.

gr weekly
Larger Image

Which allowed HGR to maintain itself well above the critical 'Armageddon 08' low. Weekly chart above.

gr monthly
Larger Image

Which itself was a higher low to the kickoff of the secular bull market in 2000 (in nominal HUI, not this ratio). Monthly chart above.

The HGR does indeed look lame over the big picture, but as long as the higher lows are in place and as long as macro fundamentals (e.g. the real price of gold) are in place the above is a view of a buying opportunity, as pained as it is to endure for those already all in.

It is a view of opportunity as long as we do not get violations, so you can see why it was a little unsettling when the ratio began to waterfall (by the 2 hour chart at top) into what we now assume was a well coordinated hit (in line with the terrible CoT data noted in this space a couple days ago.

It's all in good fun I suppose. At some point the goons will be behind us, as will this accursed noise about the Fiscal Cliff ™ in which markets are finding the latest emotional obsessions. Indicators like the HGR quietly whir beneath the surface and while it got hairy the other day, it remains unbroken.

 

Back to homepage

Leave a comment

Leave a comment