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OK…that’s it for this PM Bull Stance for me
GDXJ and the gang are the leaders of the PM pack
PM Shares absolutely are signaling a move down in PMs.
That’s how I see it.
They lead this little rally and now they are NOT moving one bit higher even on a day when Gold and Silver are up 1 and 2% and the Dollar is Breaking strongly down vs the Yen.
Ignore the GDXJ:GLD ratio if you like. It is a Very Very high percentage predictor of the Price of Gold in the short term.
What exactly is GDXJ? Is it a true measure of anything? If so, what?
Good question Spock.
I figure it is a true measure of a basket of PM Stocks ( not necessarily Juniors…but a basket none the less.
My Point is these well known names are uninspired by gold’s present move and in the short term this usually caps Gold’s move
From the rebalancing of the gdxj which is being rebalanced by selling all of the juniors by VanEck before June 16th, stocks with forecasted weight reductions have declined 15.7%. (http://themacrotourist.com//macro/gdxjs-epic-rebalance) Me thinks this is the reason you see the juniors underperforming GLD. Makes you kinda wonder, does VanEck know there is an up cycle coming for the gold stocks, are they dumping now to buy back in cheaply to the best ones instead? I wonder if VanEck is subscribing to Spock’s service!