Loading ...Unfortunately that indicator doesn’t mean anything anymore. The reason the miners are outperforming is because the ETF speculators are more bearish here than on the bullion. This is understandable with stocks on Pluto, liquidity in question, etc. So unless the gambling knuckle-heads keep pressing their bearish bets on PM shares via ETF options, the relative strength won’t last.
Impossible to predict with the idiots we are dealing with here, but not likely.
I would be very surprised if they were not call buyers today with Trump spouting off on China. Looks like they are setting up for a short squeeze in the broads going into year end. The entire purpose of Trumps comments were to get the idiot hedgies to buy puts on the broads and calls on the PMs.
Then like magic, after the Fed meeting next week, where a ‘hawkish Powell’ brings in some selling, Trump signals the China deal is back on and stocks get squeezed into year end and PMs sold (due to the hawkish Fed causing futures speculators to dump their long positions).
Now if I could only pick lottery numbers.
Chuckle