NFTRH+; Initial hint

The HUI/Gold ratio (HUI/GLD) is dwelling below the 50 day moving average for a 3rd day in a row. That is not positive, even if it is not yet proven to be overly negative. The yellow highlights on the daily chart show occasions during the rally when the HGR tanked but reversed quickly back above the SMA 50, in essence shaking out participants and then laughing at them.

This is an initial warning from a sector internals indicator and it needs to take back the SMA 50 promptly to negate that.

As a side note, the gold stock sector is still getting painted with the inflation trade stick, often weakening when the likes of base metals and energy weaken and firming when they firm. That is not the preferred situation, especially in light of the strong jobs report. The gold stock sector will only be unique when that stuff drops along with inflation signals and gold firmly out-performs the cyclical, inflation stuff.

HUI/Gold ratio