Today is quite wild with SLV +4%, GLD +1%, but Gold miners generally down and sucking.
I actually remember the same situation happening just before the COVID crash and it seems I can illustrate it with this chart.
It's hard to believe miners can be so weak with Gold so strong above $2000. They have amazing fundamentals here.
But the tape is what it is. I...
GDX continues to deteriorate relative to gold. This is the opposite of what should happen in a gold uptrend. In other words, the gold miners have bearishly diverged gold. If GDX continues to weaken, it doesn't bode well for gold...and of course most gold miner stocks. Will want to see that ratio turn up if bullish.
Gold companies have rallied well vs gold itself since january. Let's see if this reverts.
I think I properly volatility (not a expert on this) 2.666 the notional value in gold vs 1 notional value in gdx.
not doing this with really money just a theoretical exercise.
Miners working on a bullish engulfing week so far and a right shoulder against the metal.
If symmetry is any guide, hints that we will have maybe another month spend in this bottoming IH&S formation.