Loading ...GDX:QQQ
Big Cap Gold Stocks vs Big Cap Tech
Alpha8 brought this concept up recently.
Jordan as well watches similar charts
Can we have a rip roaring Gold Bull if The Tech Giants are still outperforming Gold Miners ?
So far this chart has lower highs and lower lows and is now poised to break below a neckline.
Note the imminent “death cross” as well
Of course as has been pointed out IF Both GDX and QQQ rise together but QQQ rises faster…this chart can still drop
BUT can we have a rip roaring Gold Bull in this scenario ?
How about longer term ?
HUI:NDX has longer history than GDX:QQQ
Both can go up. Both can go up a lot. There can be rotations of sectors. One can go up and the other can go down. Different things can happen. Things happen.
Yes BUT when GDX is lagging QQQ there is NO Gold Bull
When GDX outperforms QQQ there is a Gold Bull.
If you want to define “Gold Bull” on whether GDX is lagging QQQ or not then you are necessarily correct by your definition. It is nice to have a set criterion. All you need is to set a period of time. For example, if QQQ lags the GDX for 30 minutes, presumably you would not call it a “Bear Market”. Set a time period — for example, that it has to lag for more than a week — and you’ve got your criteria.
“Gold Bull” is not a term I personally use. I don’t typically use “Bull” or “Bear” much either since people’s definitions are highly variable and subject to too much misunderstanding.
My point is that it is possible for gold stocks to do extremely well while SOX does extremely well but perhaps just not quite as well. Or gold stocks can do extremely well while QQQ does extremely well, but perhaps not quite as well. Or perhaps poorly. Or perhaps somewhat well, and then it overtakes them both.
What is perhaps more interesting for me is whether it overtakes cost of living without taking heavy transient losses.
Karl, I share some of your thoughts also. For me the gold “bull run” was confirmed with a close above 1400 on the monthly chart, for the usd (althought it was already confirmed via other fiat currencies months before) The rest is academic and will follow. I think people wait for gdx and juniors for the reward % once they join, hence their popularity.