Inflexion Point Here – Or Not Until January?
A number of technicians and precious metals analysts have pointed out, that as good a year as gold and silver have had, the real PM bull market, especially for the miners, won’t takeoff until they breakout relative to the stock market.
Until equities, measured by the Wall Street benchmark of the S&P 500, roll over and begin to under perform vs the gold and silver miners, the real upside explosion in metals won’t occur. Once that dynamic kicks in, money will flow out of general equities and into the mining sector.
Given the size of the total capital in S&P 500 ETF’s and funds vs the miniscule market cap of the mining sector, the size and speed of the move should be breathtaking. While it is likely it won’t start until after January 2nd, don’t be surprised if some frontrunning begins as early, as today. Everything is lined up just waiting for the sound of the starter’s pistol. On your mark, get set, GO!