Miner Update

It's been quite the winter. Have been a bit busy and preoccupied, apologies for the lack of posts. Anywho, ever since gold put in that local top at 1300 its been a methodical and systematic take down, very technical if you've been watching/trading.

The real story still lies ahead. The rumblings continue to grow louder in various markets. The focus right now for me is on what lies ahead in the currency markets. I see gold as a currency so that fits well for me.

The miners took a nasty nose dive shortly after one of my prior missives in January when we looked at the ratios of gold:spx   gold:ndx  gold:spy   hui:gold.   We were banging up against the top rail of some down trending channels. Since then, we have reached the lower channel and now have begun to turn up. This is a great opportunity to buy the dips in the precious metals equities.

Here's one example of the charts; the rest can be recreated by typing into www.stockcharts.com "$gold:$ndx" for instance.

I like to look at these ratios to get an idea of relative strength among sectors and a sort of money flow perspective. The next chart that intrigues me the most is comparing the S+P 500
to the 20 year bonds. SPY:TLT (see below)










Since the start of 2014, bonds have been out performing the S+P500. The ratio has bounced off its 200dma 3 times now in this downward move.  I suspect there is more to come. I like the long bond over the S+P and gold over them all.
...
 Right when this ratio broke down, was right when the below chart lost its correlation. (SPX vs. 30YR US Treasury rate.)

I think this mostly signals volatility ahead as markets begin to shift again. 

As far as the miners go, they have some work to do in the charts to construct any major sea changes. Right now I continue to keep buying dips.  Going into tomorrow, we are in a peculiar spot for the immediate term, action for the next intermediate move will be determined shortly. I'll touch  base later this week or over the weekend with my thoughts.

Thanks for reading.