I've followed your Gold charting for quite awhile - since the early days with Jim. One question I have is that beginning early in the gold bull market, large cap gold producers followed the daily change in the price of gold almost in lock step and all the large caps went up or down together. However, in the last few months that pattern has changed. Now Gold goes up (or down) for the day and you don't see gold equities necessarily following it. Instead 1 stock can be up, the next down, a third unchanged...Big change in pattern from last 5-8 years action. Do you have any thoughts on the change (that is if you agree there has been this change in behavior)? Tks Richard
Richard; Please see my comments on the hedge fund ratio trade to explain this. There are some stories on my blog relating to this as well as some of what i have also written at Jsmineset.
Trader Dan,
ReplyDeleteI've followed your Gold charting for quite awhile - since the early days with Jim. One question I have is that beginning early in the gold bull market, large cap gold producers followed the daily change in the price of gold almost in lock step and all the large caps went up or down together. However, in the last few months that pattern has changed. Now Gold goes up (or down) for the day and you don't see gold equities necessarily following it. Instead 1 stock can be up, the next down, a third unchanged...Big change in pattern from last 5-8 years action.
Do you have any thoughts on the change (that is if you agree there has been this change in behavior)?
Tks
Richard
Richard; Please see my comments on the hedge fund ratio trade to explain this. There are some stories on my blog relating to this as well as some of what i have also written at Jsmineset.
ReplyDeleteDan