The HUI turned out to be a popular gold stock related index while GDX is a good ETF to watch. They are both about the same but GDX is performing a bit better than the HUI.
Gold has already soared well above that 2016 high while the HUI has still been lagging far behind. Many of the gold-stock ETFs have been lagging far behind gold, so I’m sure there is some catching-up still to come.
Analysts have been looking for big break-out moves back in 2011 and they never materialized as well. Silver is in the same boat as the 2011 peak barely exceeded the 1980 peak by just a few dollars.
Don’t get me wrong as I’m bullish until all 5 waves in Minor degree show themselves. The lagging is just an early warning.
The Gold/Hui ratio sits at 6.9 this morning and that number should compress much more before this bullish phase comes to an end.
GDX is an ETF that we can trade so it makes sense not to spend too much of my time wave counting the HUI.
Give this until late this year to see if the next leg appears, but either way, I don’t want to turn bearish too early.