Thursday, April 10, 2014

Gold Bugs index poised to rally 150% again???

by Chris Kimble


Twice in the past 15 years the Gold Bugs/S&P 500 ratio was oversold (2001 & 2009), and the  Gold Bugs index ended up with rallies in excess of 150%.

The ratio remains deeply oversold at this time and the Gold bugs index could be on support and forming a bullish inverse head & shoulders pattern. The current fish-mouth spread between the two is now the widest in the past 14 years.

I have been sharing with Premium members that the Silver/Gold ratio is on a 24-year support line and has created another bullish falling wedge on support. In my humble opinion, this ratio needs to breakout to the upside, for the Gold bugs index to blast off!

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