Loading ...Are you okay Bob?
Bob has been acting a little funny lately and I had the afternoon off of work, so I did some playing around with the correlation indicator. I noted the times that silver was inversely correlated to GDX (correlation was less than zero). Kind of surprised by what I found. Check out what the correlation number is today!
Edit:
Adding chart with Silver.
Nice work!
You are freaking me out KenS
This is something I didn’t know existed….what a visual
INCREDIBLE
YOU NEED TO QUIT YOU DAY JOB ASAP !
Well, that doesn’t look very positive, does it?
Not much left to the upside…
By the way KenS, great chart…
Thanks KenS. Its post like this that makes me love the effort thats brought forth here!
So low 20 day correlations (negative even) seem to mark GDX highs, roughly. Is that the take away?
Those negative correlations seem to be abrupt, and not long lasting.
Any insight into how long they stay that low? In days? Chart is pretty compressed to get a read on that.
How much of a warning can it provide?
So what’s the dynamic here near GDX highs? Silver reversing with GDX going up?
Or GDX stalling, while silver continues to rise as if all is well?
Enquiring minds would be most pleased to have more information on this subject.
By the road, thanks.
In conjunction with these charts does anyone have a current RMAR reading? The latest I could find was around mid 2016.
http://www.kitco.com/commentaries/2016-07-26/Decision-Time-for-Silver-Investors.html
Thanks.
That’s a pretty convincing case for a big drop ahead in the miners.
thanks for the charts ken, could you please supply us with the links to these charts? thank you
Here is the link:
http://stockcharts.com/h-sc/ui?s=GDX&p=D&yr=10&mn=0&dy=0&id=p54051210275&a=510094371
I don’t have much more information than anyone else here as I stumbled across it only yesterday afternoon. I think it is one of those indicators that gives you a heads up that something is coming – a shot across the bow if you will – but I don’t think it is precise enough to be a tradeable indicator.
My original conclusion was when the correlation gets inverted the time was nearing to sell the miners. Sir Fully then asked how it related to silver and I included that relationship also, which appears to be just as good, if not better.
thanks ken, i tried using the correlation and was using it wrong, now i see how to do it…:)