Weekly chart of ratio of GDXJ (Junior Miners) vice SPY....when ratio is going up Jr. Miners outperforming SPY and vice-versa. Trend obviously still down.....BUT bullish RSI divergence since May 2013 indicates RSI forming higher lows despite price going down. Might GDXJ start to move north and carve out some zig-zag type pattern but moving up steadily? Just a...
IBB/SPY ratio shows fantastic base in IBB/SPY from 2001 to 2012 ("bigger the base, the higher in space") with a huge breakout in early 2012 to recent highs in March 2015. But (and there's always a but), IBB/SPY exceeded channel (highlighted) last month and shows bearish negative divergence. Biotechs have been the "it" sector/niche in this bull market...now that...
XLY/XLP ratio showing very elevated historical levels. Could keep going up, but per 2 previous market tops (2000, 2007), currently isn't the best risk/reward scenario.
SILVER/GOLD ratio looking to bottom here....similar to previous 2 times, ratio forming bullish descending wedge at 3. Doesn't mean ratio will go up, but a good prob. and if so, metals with them.
NOTE: UVXY chart inverted (i.e. upside down) to show its possible topping pattern. With VIX very low (in the 12ish range) and UVXY here (inverted for ease of seeing possible "topping" pattern) breaching up through channel...chart shows UVXY as a good possible "short". As always, TBD. Ergo, going long UVXY best way to take advantage of rising VIX. 23APR...
Theory: Just like HUI (Gold Bug's Index) formed a clearly defined H&S Top as chart shows, could it also be in process of forming an Inverse H&S bottom? If so, could be currently working on the Head part of the Inverse H&S. RSI positively diverged from the shoulder to the forming head, so let's keep an eye on it and see what happens, FWIW.
IBB hitting upper channel trendline and RSI negative divergence...NAZ hitting 5K and excessive optimism with Bios the "it" sector since 2012 (jdmarkman.tumblr.com) ...time for some mean reversion?
Just like earlier posting of GLD, could Gold be putting in an H&S bottom? Or merely rallying up to kiss the trendline it broke down through, only to resume its downtrend again?
Saw a poster on Stocktwits pointing out possible H&S bottom, so here's a chart of it-----GLD (and Spot Gold, as well) forming an inverse H&S bottom. Trendlines (mine) show levels of long-term support/resistance. If inv. H&S is valid, should see GLD rally very soon (w/i next few days)...if it keeps falling pattern would be invalidated.
After a nice run, DXY (US Dollar Index) looking shaky here....above previous resistance yet showing decling RSI (bearish). Maybe forming a false/failed breakout? Coupled w/extreme bullish sentiment, a decline here could be good for commodities. TBD
GLD/SPY ratio sitting on key support...even violated it briefly. Time for rally in GLD?
GDXJ (small miners)/GDX (larger miners). When ration goes down GDX>GDXJ as has been happening since Dec 2010. Similar to prev. posted GLD and GDX charts, GDXJ/GDX chart here may have "turned the corner", which would be consistent w/a turnaround in GLD. Note RSI rising despite ratio declining....a bullish divergence favoring GDXJ over GDX. TBD as in all things, however!
Chart shows GLD in bearish descending triangle and seemingly breakdown through it. However, GLD reversed instead of continuing down. Extreme negative sentiment (bulls v bears) on GLD and oversold indicators (RSI) hint it may have shaken out all weak hands and started new trend up. TBD.
Chart of Silver Spot/Gold Spot Ratio showing bullish declining wedge w/bullish RSI divergence plus bullish wick on 12/1/14. If ratio is rising, is supposedly bullish for metals in general. TBD.