As you may have noticed, I like ratio charts as one of many very good tools for trying to figuring out relative strength, trend and/or direction, especially at inflection points.
The ratio charts below makes it pretty clear that the majors (HUI) are going to underperform the small caps (GDXJ) and especially the micro caps (CDNX), going forward. And all charts have a thin zone coming up so my guess is that small caps and especially micro caps will fly.
One other possibility with the ratio charts is of course that CDNX and GDXJ could also be falling less than HUI in the near term but that alternative I find highly unlikely at this very point.
I do not think we would have charts that show small and micro caps being strongest if PM was about to take a dive right now. The CDNX is brutally strong at this point looking at its separate chart if one compares it to the majors (not shown here).
The fact that the CDNX is this strong now is just another sign of coming broad commodity inflation as I see it since it contains companies that deals in many different commodities.
Put this together on the 27th. Spot the yellow cell. Some are of course ETFs.
We also have a number of majors looking like they are BT and not about to drop to the floor, as I see it, e.g.:
So, in sum, I think the place to be right now going forward is the small and micro cap. And most of the majors are not looking as bad as e.g. HUI and GDX can have one believe if one looks at the individual companies as I see it.
Also, I do really believe that GOLD will not go lower for the rest of this bull market than it did on the 16th of Sept at circa 1310. That was the apex hit that I had been looking for and posting about:
https://goldtadise.com/?p=381959
Loading ...
