Zeev's Turnips Patch-No Politics (ZEEV)

[Ken2]

Steve,

Yes, the poor performance of XAU/HUI lately relative to POG has greatly disappointed me, but Dan posted an article recently arguing that the trend is still that XAU/HUI are outperforming POG. I can't find that article, but it charted either the XAU or HUI divided by gold and the chart definitely showed that the trend was up.

Here are two links that chart the ratios.

http://stockcharts.com/def/servlet/SC.web?c=$xau:$GOLD,uu[m,a]daclyyay[pb50!b200][vc60][iUk14!Lb14]&....
http://stockcharts.com/def/servlet/SC.web?c=$hui:$GOLD,uu[m,a]daclyyay[pb50!b200][vc60][iUk14!Lb14]&....

The ratio to Gold looks oversold and ready to move higher. The question is, will the ratio move higher as gold drops, or as X/H play catch-up? I still believe that if gold continues higher, X/H will take off sharply. So far that hasn't happened, but we will see. If POG hits $500 in a few weeks, I would expect XAU and HUI to be much higher than they are now.

I see that DXY0 just dropped below 82, so that trend seems to be continuing.

Happy Thanksgiving!

Ken