"When misguided public opinion honors what is despicable and despises what is honorable, punishes virtue and rewards vice, encourages what is harmful and discourages what is useful, applauds falsehood and smothers truth under indifference or insult, a nation turns its back on progress and can be restored only by the terrible lessons of catastrophe." … Frederic Bastiat

Evil talks about tolerance only when it’s weak. When it gains the upper hand, its vanity always requires the destruction of the good and the innocent, because the example of good and innocent lives is an ongoing witness against it. So it always has been. So it always will be. And America has no special immunity to becoming an enemy of its own founding beliefs about human freedom, human dignity, the limited power of the state, and the sovereignty of God. – Archbishop Chaput

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Thursday, March 10, 2011

HUI on the receiving end of the ratio spread trades

The HUI is known for huge gaps both up and down. Today is no exception with the index gapping sharply lower and breaking down below both the 50 and 100 day moving averages. The index is crawling back above the 50 day but has some serious technical work to do in order to repair the damage on the charts.

Once again the huge ratio spread trades are supplying the crushing of the mining shares as they are performing worse than either gold or silver bullion.


  1. Any thoughts on hedging strategies for positions in the miners Dan?

  2. Hi Dan,

    Generally speaking, can this ratio trade go on forever? It seems like positive earnings and gold reserves do not matter anymore to the market regarding mining shares.


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