Wed Feb 20, 2013
The bear raids on metals continue as gold drops below $1600 despite all the positive talk on kitco and other sites. Where is the bottom?
GDX to Gold
Apparently I was wrong to think that the GDX to gold ratio would not revisit the 2008 extreme. This is a weekly chart but we are not to the end of th week.
Daily
Yesterday the ratio ticked toa new low. This is an extreme. Beyond that there is not a great deal to say.
While we have stated the stock market was overdone it continues to the upside. This morning's WSJ has a lead editorial on Obama's refusal to deal as well as an op ed explanatino by Boehner about how this happened. With the sequester set for Monday, perhaps this will be the catalyst for a stock sell off.
What will that mean for metals? I had thought they would rally at that point. At this point, well, we shall see.
Comments