Gold Miners Are Leading Something

HUI was in positive correlation to long-term Treasury bonds (TLT) from the top in the fear trades last summer to the end of February. Then they went opposite each other as gold stocks bounced while TLT continued to get hammered. I did not necessarily expect the negative correlation between gold/miners and bonds to endure, but so far it persists. We did, however, more than allow for the gold stock correction to continue because as you can see, the downtrend is fully intact.

I wonder about the possibility that the relief that casino patrons thought they’d enjoy if yields stopped rising (bonds rallied) may not be relief at all. Lots of possibilities and absolutely no time to interpret right now as I’m hitting the road for a couple of days. See you on Thursday. Keep yer heads on straight.