Seeking Alpha
  • Macro Economist
    GDX now down 1% today. Sayonara to this rally.
    6/6/12
    Reply (12)
    • iadops40: wow, gold was up +3% earlier this morning
      6/6/12
    • pk123: no worries... gold still has some strength
      6/6/12
    • sean.parmelee: Up 23% in three weeks and you're calling the rally over because of a down day or two?
      6/7/12
    • Macro Economist: @Sean. No, I am using it as a risk/on risk off gauge. Don't take things so seriously dude.
      6/7/12
    • sean.parmelee: Misunderstood you. Thought you were talking about the rally in miners.
      6/7/12
    • Macro Economist: LOL. That's probably over too! But if you buy and close your eyes for 2 years, you'll probably make a lot of $. My ST target is low 30's.
      6/7/12
    • sean.parmelee: GDX? No way. You must be anticipating a depression, and like $500 gold next week.
      6/7/12
    • Macro Economist: $1350 gold and maintaining the Gold:Gold stocks ratio would take GDX to the low 30's. I am just replaying 2008 peak to trough.
      6/7/12
    • sean.parmelee: Miners are correlated with broader equities almost as much as they are with gold. You can't look at a simple ratio like that. If you think
      6/7/12
    • sean.parmelee: $SPX is more or less fine where it is now, then today's GDX price is historically consistent with $1125 gold. GDX in the 30s would be $500.
      6/7/12
    • Macro Economist: Write an article on this and substantiate our claims. Otherwise we can agree to disagree or take it offline.
      6/7/12
    • sean.parmelee: Hah, take it offline. Anyway, good luck with your investing.
      6/7/12
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