Tag Archives: HUI

HUI, Gold & Silver; Fun With Monthly Charts

Outside of the sound practice that is physical gold ownership in a time of monetary gamesmanship, the precious metals sector is all about speculation, at least according to 9 out of 10 chart jockeys and momentum junkies micro managing every short-term twist and turn.

Indeed, NFTRH manages gold, silver and the gold stocks on down to the short-term views as well, but that is only because the long-term views have stated that this is a time to be paying attention.  Do we pay attention because we have waited so long to promote our orthodoxy and finally be right as gold bugs?  No.  We pay attention when a chart tells us to pay attention.

While we manage the shorter-term views (both macro fundamental and technical) rigorously in the weekly report and interim updates, here I’d like to dial out to the big monthly picture with 3 large (click to expand as needed) charts of HUI, Gold and Silver to see their stories, which are the reasons we are managing shorter-term views.

HUI Gold Bugs Index

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First HUI monthly reviews the warnings to the analysis from 2012 and 2013.  They were very clear and should have kept people out of much of harm’s way with respect to gold stock speculation.

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HUI Gold Ratio, 2 Ways

Way #1 sees the HUI Gold Ratio (HGR) below the lateral breakout line (neckline interpretation #1).

Way #2 sees it breaking neckline interpretation #2 this week.

hgr

What’s it mean?  Why, gold stocks have been stronger than gold for 2.5 months now!  It also means that a break above the red line would be very bullish and there is already some bullish stuff going on with this chart (ref. the panel indicators and the positive divergence to price in December and their 0+ and 50+ status).

AROON is a party pooper as it turned down due to the time this ratio – like so many other aspects of the precious metals complex – has taken taken in slogging through its potential bottoming process.