Major indecision thanks to the pesky declining 400 WMA.  It is absolutely anyone’s guess when this ratio decides to explode upwards.  It could happen at any time, or maybe it decides it wants to dance around the convergence zone of the 200 WMA and the 400 WMA for another 3-4 months.

There is nothing bearish on this chart though.  As I have been saying, I think it will follow yen.  If the yen is turned back from its declining 400 WMA (which it is testing as we speak) then I think it will mean GDX:GLD will probably flatline for a few more months.  If on the other hand yen can explode higher in the next few weeks, I think GDX:GLD will follow suit.

The declining 400 WMA is coming into play with loads of individual commodities (like $corn and $wheat for example), the yen and silver and has generally been a tough nut to crack.