HUI Gold Stock Review: 2003-2017

 

 

The HUI is the mainstay of all gold stocks, and most of all the other US priced gold stock ETFs, will act much the same. The bull market leading up to the 2011 peak can only fit as a diagonal 5th wave, and even then I can still make adjustments for a better fit. At the 2011 peak my Cycle degree wave III can fit very well at this time.

Of course, then the 2011 Stock Maina started to kick in, which killed the golden bull. The bullish mood in 2011 was unprecedented as the major reversal caught all the bullish experts by surprise. If you haven’t figured this out yet, the markets will always act this way, as they will never let the majority win. It is also mathematically impossible for the majority to win money from the majority.

In a bull market the majority always seems to be winning, but their profits are always left on paper. Paper profits are never real, when they are not converted to useful cash.

Buying stuff based on the wealth effect will eventually crush us all, as we would be buying with unrealized paper gains.

In the end the HUI is acting much like all the other gold stock related ETFs, but it never hurts to keep an eye on all of them. I can’t track them in detail as much as I would like, as I’m maxed out on how many asset classes I can cover.

I may track well over 13 ratios, but the most important ones must be measured at the extremes. This week the Gold/Hui ratio calculated at 5.75:1  which does not change as dramatically as other ratios do.  When the Gold/Hui ratio strikes near 3:1 again, then we have a very expensive ratio, which may be accompanied by insider selling.  Until then, this gold stock bull market is alive and kicking, which most of the mainstream experts, have still ignored at this time.

Chances are good when the talking heads jump on the gold bandwagon, and the news blogs are all bullish on gold, then gold stocks will be ready to crash or correct. The markets will never allow the late comers to make any profits as they will lose even in a bull market.  Leaving 170% gains on the table is not an option for the real contrarians, which the HUI has done once already.

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