Stocks Bulls Can Take A Rest – But Gold Ones Can‘t

miners to gold and miners to silver

Comparing the gold miners to gold (HUI:GOLD) ratio to the silver miners to silver (SIL:SILVER) ratio is returning a bullish snapshot of the current advance too. The beaten down gold sector is leading the charge, and the silver one will play catch-up in time.

Summary

Having reached the 3,900 zone, the S&P 500 is likely to consolidate the gains next. Due to the improving key markets (corporate bonds and tech), I am not looking for any this week‘s potential setback to turn the tide in this aging correction really.

The gold upswing is proceeding, helped by the weakening dollar and ever so slightly retreating Treasury yields. After clearing the volume profile defined support at $1,720 and stretching a little below, the bulls next objective is the roughly $1,775 figure marking the Feb lows. Should that one be conquered, the odds of having seen gold bottom this Monday, would have dramatically increased.

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Monica Kingsley 2 months ago Author's comment

SPX within sight of all time highs, and the tech didn't retreat an inch today. In the meantime, value stocks keep gently reaching hgiher, HYG got its act together - the bulls decided not to rest, and go for new highs in one day. More power and profits to the bulls!

Gold just can't keep above $1,730 today, and revisits the low $1,720s. Despite weakening USD and half of intradays TLT losses erased, the miners to gold ratio is running into headwinds again. Looking at silver and SIL, I am not writing off the unfolding rebound just yet, though.

Good evening everyone!!

Monica Kingsley 2 months ago Author's comment

Okay, no rest for stock market bulls as the 3,900 will be convincingly cleared today, in line with my opening sentence.

But gold bulls have a tad complicated their position with the retreat from premarket highs - they better refuse trading at the $1,720 volume profile zone that is still acting as a magnet, and surge higher if they are earnest. At least GDX is kind of behaving today so far - but no model of strength either.

Good day everyone!