The metals and gold stock sector have reversed upward and unfortunately I don’t have time to check to see what – if anything, news-wise – might be behind it. I have a commitment shortly.
But here is the Gold vs. Oil chart we have been using. It’s impulsive and it’s getting very positive for gold mining.
If (a big if, I know) gold gains a significant bump against the stock market, we would have another piece of the puzzle in place.
I think it is notable that the precious metals are rising while commodities are dropping. That is after all a microcosm of our big picture economic contraction gauge (Gold-CCI ratio), having little to do with inflation as a stimulant for the gold sector.
I was within a whisker of cursing myself (and selling) for having started GDXJ on Friday. Now, not so much. But it will bear watching until the thus far modest bounce gains some traction.
Here is GLD vs. SPY, really not having gone anywhere, but watch gold vs. the US stock market as another positive indicator on the gold sector, if it should start to rise.