• 747 days Will The ECB Continue To Hike Rates?
  • 747 days Forbes: Aramco Remains Largest Company In The Middle East
  • 749 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 1,149 days Could Crypto Overtake Traditional Investment?
  • 1,154 days Americans Still Quitting Jobs At Record Pace
  • 1,156 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 1,159 days Is The Dollar Too Strong?
  • 1,159 days Big Tech Disappoints Investors on Earnings Calls
  • 1,160 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 1,162 days China Is Quietly Trying To Distance Itself From Russia
  • 1,162 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 1,166 days Crypto Investors Won Big In 2021
  • 1,166 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 1,167 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 1,169 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 1,170 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 1,173 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 1,174 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 1,174 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 1,176 days Are NFTs About To Take Over Gaming?
The Problem With Modern Monetary Theory

The Problem With Modern Monetary Theory

Modern monetary theory has been…

Is The Bull Market On Its Last Legs?

Is The Bull Market On Its Last Legs?

This aging bull market may…

Another Retail Giant Bites The Dust

Another Retail Giant Bites The Dust

Forever 21 filed for Chapter…

  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