Replies to post #124694 on Zeev's Turnips Patch-No Politics (ZEEV)

[TJ Parker]

Am I missing something or is this divergence somewhat significant?

in spite of the fact that i'm somewhat boolish on gold, i'll note the following: the rally on the xau and hui was coincident with the rally everywhere else, driven by liquidity. e.g. techs and internets rallied without motivation from real improving fundamentals, so its not in itself too surprising that hui could do that also .... not that that explains it, but it could.

i think i'm using too many italics now.

[Zeev Hed]

I think T.J. is right, I would add that on the first run of the metal to just under $400, stocks were lagging, this time they have simply caught up mostly because the rest of the equiies have. I discussed this phenomenon in the past in conjunction with major declines (end phase declines) where despite the relative strength of the meal, gold stock perform poorly. There is not always a "one to one" correlation in short term moves, but the long term trends are congruent.

Zeev