GOLDBUGS AMEX Goldbugs Index (GOLD)

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The Ord Oracle
By: Tim Ord | May 19, 2021

SPX Monitoring Purposes: Sold long 4/9/21 SPX at 4128.80= gain 6.16%; Long SPX on 3/24/21 at 3889.14.

Monitoring Purposes GOLD: Long GDX on 10/9/20 at 40.78.

Long Term SPX Monitor Purposes: sold long SPX on 1/15/21 at 3768.25= gain 10.80%; Long SPX on 10/26/20 at 3400.97.



The best may be yet to come. Above is the monthly XAU/Gold ratio dating back to 1999. This ratio is at the previous highs of 2016 and 2014 and the downtrend line connecting the highs going back to 1996. It appears a "breakout" is about to happen and a surge in price for this ratio. This ratio has been in a tight trading range for nearly a year and has been modestly rising the last 6 months. The tight trading range suggests an impulse wave is coming and the modest rise suggests the impulse wave will be up. Also notice that the ratio's tight range is not backing away of the trend line dating back to 2014, which implies it's absorbing supply and, once supply is exhausted, it will rally higher. Could see a large jump in price for this ratio in the coming weeks. A large jump in this ratio suggests a large jump in XAU, along with a jump in GDX and HUI. Notice also the monthly mid-Bollinger band is now rising, suggesting the longer-term trend is up for this ratio. Long GDX (10/9/20 at 40.78).

Tim Ord,

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