Hello friends, just landed in Grindelwald. I'm somehow getting reception on my iPad, so I have a minute to share some charts with you:
With September almost in the books, here's a chart of monthly closing prices:
But the fact that the 5% envelope of the 20-day EMA was hit twice, and a sell-off hasn't yet occurred tells me we have room to climb. I'm definitely not shorting anything here, though I've lightened up.
The silver weekly looks good, though we're right at the top of a wide trading range. Note the 34- and 55-week MAs are about to cross, which has been bullish in the past.
Here's the chart from my last post in August, when the $SPX:GDXJ ratio was right at the bottom of the ascending channel (yellow). It has since fallen through the 50-day MA.
But the RSI on the ^HUI is at an all-time high. The last time it was here, back in 2002, gold stocks quickly lost an even greater percentage of their value than what occurred over the past year. Are things different this time? Gold stocks are due for a correction, but perhaps it will be in the context of an overall equity sell-off.