POG is UP this Last Trading Day of 2011!!! There is hope for Gold going into 2012. Seems NR’s have been put on Hold this week in most issues (EAG), most likely the reason being that the majority of trading desks are on minimum manning until the New Year. Why waste good news when no one is watching and trading is light!
To me POG is much Oversold here on the charts. Gold Stocks are very Undervalued, especially the Juniors after the persistent selling during “Tax Loss” season. Will conditions revert to a more normal pricing and valuation??? Here’s hoping so,…too many paper losses to recoup. Some charts of interest for any GoldBug;
I use the Free Charts section of Stock Charts dot com, corresponding symbols will work there. (Venture Stocks .V like EAG.V, for Toronto issues like Armistice AZ.TO)
https://stockcharts.com/
$INDU (Dow Jones), $GOLD (POG) the ratio is always of interest $INDU:$GOLD as Historically you own the Gold until a 2:1 ratio, then sell Gold (Today 7.93)
GDX is the Gold Miners, GDXJ the Junior Gold Miners (Breaking Down)
The ratio GDX:GDXJ shows the Junior Gold weakness.
GLDX is the Gold Explorers, looking like a Bear Market.
ZJG.TO is BMO’s Canadian Traded basket of Juniors.
Also SLV is Silver and $CDNX for the Venture. Take a look at the Daily and Weekly Charts. Is the Bottom in for POG, the Miners, Juniors or Explorers. All indications like RSI, MACD indicate multi year lows, maybe the bottoms. Below some comparison of the weekly charts;
|
Index/Date
|
$CDNX
|
$GOLD
|
GDX
|
GDXJ
|
GLDX
|
AZ.TO
|
Dow/AU
|
|
Jan’09
|
900
|
875
|
30
|
|
|
0.21
|
9.75
|
|
Jul’09
|
1100
|
950
|
36
|
|
|
0.14
|
9.0
|
|
Jan’10
|
1600
|
1150
|
48
|
24
|
|
0.30
|
9.5
|
|
Jul’10
|
1400
|
1225
|
50
|
23
|
|
0.25
|
8.25
|
|
Jan’11
|
2300
|
1375
|
60
|
36
|
18
|
0.47
|
8.5
|
|
|
XXX
|
|
|
XXX
|
XXX
|
|
|
|
Jul’11
|
2000
|
1550
|
55
|
33
|
15
|
0.38
|
8.0
|
|
Today
|
1461
|
1549
|
51.20
|
23.89
|
10.51
|
0.21
|
7.93
|
2011 Mar/Apr Highs – (XXX) $CDNX (2475), GDXJ (40), GLDX (19.50)
2011 Aug Highs - $GOLD (1931), GDX (67.50)
Interesting that the Venture, Juniors and Explorers hit 2011 highs end March and did not follow POG to it’s August High $1931, $500 higher (POG end March $1430)
Today, if correlated to POG $1549, the Venture should be 2675 not 1461, the Juniors (GDXJ) at $43.20 not $23.89 and the Explorers (GLDX) should be $21 not $10.51
Happy GOLD New Year, let’s hope for a nice rebound in the stocks, more to reflecting the metal pricing. Cheers, Mark