Gold vs. major stock markets got impulsive to end the week. The case appears to be building, pending the macro relief that will come when fear and angst max out on the short-term - R. Zurrer for Money Talks
If you have followed my work for a while you probably know me as the guy who keeps insisting that the precious metals will not be ready until some strange interplanetary alignment comes into place. That would be the Macrocosm, our handy pictorial (rough) representation of the optimal backdrop for a real bull view on the gold sector.
See the biggest planet out front? Well, gold has started to make some inroads and if the stock market correction proceeds to its worst near-term potentials (options are a hold the 200 day averages and rally, or a decline to a clear SPX gap around 2460, which would open the possibility of a new intermediate downtrend) the gold sector would get a key macro fundamental underpinning. For reference, see today's article Gold's Fundamentals on the Move: PM Price Moves Should Follow.
In that article, we look at one economic/market cycle indicator on the verge of going negative. That is the ratio of gold (counter-cyclical) to Industrial Metals (cyclical).
But I would like to excerpt some of NFTRH 492's Precious Metals segment for eLetter readers to expand on the theme. The segment also went on to discuss gold and silver prices, CoT data (silver is now very compelling from a contrarian perspective) and review 29 daily charts of miners that I have interest in.