We’ve Been Here Before…..

This morning I put on one of my favorite pairs trades once again: Long $GDX at 52.92 vs. short $SPY at 136.73 for a GDX/SPY ratio of .3870. We’ve been here before and this ratio has bounced from this level every time during the last three years, will this time be different?

 

If the GDX/SPY ratio breaks down below .3700 it will be the first time since late-2008 that the ratio has ventured to such depths (the all-time low was .1734) – what would this mean for the broader market and the gold price? I will keep readers updated on this position should I decide to add to it, close it out at a loss, or take profits.

 

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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