I'm going to start again with this chart of the gold miners (GDM) divided by gold (GLD). Here we see the gold miners outdoing gold in relative strength. This has bullish implications for gold and for the whole universe of gold. The reason -- historically in gold bull markets, the leveraged gold mining stocks tend to do better than gold bullion.
I've posted a P&F chart of our DIAs below. Here we see a bullish column of Xs and then a little consolidation formation. The odds are that the little consolidation pattern will break out bullishly to the upside. Thus, we should see an advance in the DIAs to a distance about the same length as the preceding rise to the consolidation.
Again I want to point out to subscribers that on even a hint of cutting back on QE, the stock market backs off in fear and bonds retreat. On that basis, ... Log in or subscribe to continue reading.
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