Mining Stocks: A House Built On Shaky Ground

It seems to me that the five out of five efficiency in the GDXJ to gold ratio is more important than a single breakout in the GDX to gold ratio, especially considering that it was preceded by a similar breakout in mid-March. That breakout failed and was followed by declines.

Taking all four proxies into account, it seems that the implications are rather neutral to bearish. Especially when taking into account another major ratio - the one between HUI and S&P 500 is after a major, confirmed breakdown.

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All in all, the implications of mining stocks’ relative performance to gold and the general stock market are currently bearish.

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Disclaimer: All essays, research, and information found above represent analyses and opinions of Matthew Levy, CFA and Sunshine Profits' associates only. As such, it may prove wrong and be ...

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Mike Alexander 3 weeks ago Member's comment

Still looks like a Bull Flag and aggressive Bulls will miss a low risk high reward entry https://stocktwits.com/GoingDark/message/313369829