Skid Row

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A reader pointed out to me that the ratio of the gold bugs index ($HUI in ProphetCharts) versus gold (GLD) had never been lower. I looked, and it actually had been lower back when gold was around $300 per ounce, but there’s no doubt that the chart is very, very stretched to the downside. I’m still counting on, and positioned for, a bounce in precious metals and the companies that mine them in the near-term.

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I also couldn’t help but notice how many energy-producing stocks looked similar to gold miners. For some reason, I’m not quite as comfortable going long individual energy producers. I may, however, decide to take on a decent-sized position in XOP in case oil and related companies appear to be firming up Monday morning.

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