A major shift in the Gold Bugs/SPY ratio could be taking place! The Gold Bugs/SPY ratio has fallen on hard times as stocks have outperformed the Gold bugs index over the past few years by a wide margin, pushing this index down a ton.
Major Change?
Are we now witnessing a major trend change? Possibly. The ratio may have created a double bottom this year at (1) and over the past few weeks its attempting to break out of its steep falling channel.
Members bought Market Vectors Gold Miners (ARCA:GDX) on June the 5 and so far the action has been very rewarding. If this ratio continues higher, it could well put an even bigger smile on those HUI-owning faces.