Equity Markets Have Taken On a Life of Their Own Biggest Puzzle…What is Official US Dollar Value Policy
Precious Metals
Our main “Comfort” indicator is the ARCA Gold BUGS/Gold. After declining to 138 in early-December it increased to a trading range between the 50-Day and 200-Day moving averages.
Yesterday it broke above the 200-Day. This is also above the more important 20-Week ema, which is constructive.
It is also constructive to see the gold stocks outperforming the S&P 500. This ratio reached an intermediate high at 131 in July 2016 when gold bugs were calling for $10,000 gold. At least the one who has the connection to the CIA was.
The decline was to 65 in December and it is up to 73 which is right at the 20-Week ema.
Getting through would be constructive.
Recent lows for the sector and with a little more basing is setting up a cyclical bull market for gold stocks that could last for a few years.