Dan, could you please explain why the HUI index chart has more gaps than a sugar cane plantation worker's teeth. It just looks unnatural. Is it because the component stocks differ considerably regarding their individual charts? Many thanks and keep up the good work. Your blog is invaluable.
it is because gold and silver trade 24 hours round the clock and the HUI is an index of mining stocks that trade mainly during the hours that the US stocks are open for trading business. When the US equity markets open they have to catch up with whatever gold and silver have done overnight which means large gaps either up or down depending on the direction that gold and silver moved during that time period.
Dan, could you please explain why the HUI index chart has more gaps than a sugar cane plantation worker's teeth. It just looks unnatural. Is it because the component stocks differ considerably regarding their individual charts? Many thanks and keep up the good work. Your blog is invaluable.
ReplyDeleteassimilate-this;
ReplyDeleteit is because gold and silver trade 24 hours round the clock and the HUI is an index of mining stocks that trade mainly during the hours that the US stocks are open for trading business.
When the US equity markets open they have to catch up with whatever gold and silver have done overnight which means large gaps either up or down depending on the direction that gold and silver moved during that time period.