{"id":21621,"date":"2024-03-01T07:30:50","date_gmt":"2024-03-01T12:30:50","guid":{"rendered":"https:\/\/www.jeffclarktrader.com\/?p=21621"},"modified":"2024-03-01T07:30:50","modified_gmt":"2024-03-01T12:30:50","slug":"a-lag-in-gold","status":"publish","type":"post","link":"https:\/\/stage.jeffclarktrader.com\/market-minute\/a-lag-in-gold\/","title":{"rendered":"A Lag in Gold"},"content":{"rendered":"<p>Compared to the S&amp;P 500, the gold sector is the cheapest it has been in over 20 years.<\/p>\n<p>Take a look at this long-term ratio chart comparing the Gold Bugs Index (HUI) to the S&amp;P 500&hellip;<\/p>\n<p><!--IMG SNIP--><\/p>\n<p style=\"margin-bottom: 20px\" align=\"center\"><img decoding=\"async\" class=\"img-fluid\" alt=\"Image\" src=\"https:\/\/cdn.jeffclarktrader.com\/JMU\/images\/202402\/20240301-JMU-01.png\"><\/p>\n<p>When this chart is moving higher, it means that gold stocks are outperforming the S&amp;P. When the chart is moving lower, gold stocks are lagging.<\/p>\n<p>Gold stocks have been lagging the broad stock market for most of the past 13 years. Last week, this ratio chart hit its lowest point in two decades.<\/p>\n<p>In other words, gold stocks are cheap.<\/p>\n<p>Of course, that doesn&rsquo;t mean the gold sector can&rsquo;t get even cheaper. But, for folks looking for value in an over-heated stock market and for folks employing a &ldquo;reversion to the mean&rdquo; trading strategy, this is a high-probability setup.<\/p>\n<p><!--GREY BOX START--><\/p>\n<div class=\"card bg-light mb-4\">\n<div class=\"card-body\">\n<p align=\"center\" style=\"font-size: 18px;\"><strong>Free Trading Resources<\/strong><\/p>\n<p>Have you checked out Jeff&#8217;s free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career \u2013 at zero cost to you. Just <a href=\"https:\/\/www.jeffclarktrader.com\/\" target=\"_blank\" rel=\"noopener\">click here<\/a> to check it out.<\/p>\n<\/p><\/div>\n<\/div>\n<p><!--GREY BOX END--><\/p>\n<h2 style=\"text-align: center\">An Excellent Trading Vehicle<\/h2>\n<p>Yes&hellip; it&rsquo;s hard to be bullish on a sector that has been such a miserable performer. HUI is down more than 10% since the start of the year. Heck, it&rsquo;s down 5% since the start of 2023. Meanwhile, the S&amp;P 500 is up nearly 6% for 2024 and up 32% since the start of 2023.<\/p>\n<p>But keep in mind&hellip; even though the gold sector has been a horrible investment, it has been an excellent trading vehicle. In my <em>Jeff Clark Trader <\/em>service, we made 12 trades in the gold sector over the past year. We profited on 10 of them &ndash; including a 137% gain in eight days on a call option trade in December.<\/p>\n<p>We made most of those trades when the gold sector was in an extended, oversold condition &ndash; when the proverbial rubber band was stretched far to the downside. And we simply bet on a &ldquo;snap-back&rdquo; rally.<\/p>\n<p>Gold stocks are in a similar condition today.<\/p>\n<p>So, as we head into March &ndash; which is a seasonally bullish time of the year for the gold sector &ndash; I like the setup for at least a short-term rally in gold stocks and perhaps something even more dramatic.<\/p>\n<p>Best regards &amp; good trading,<\/p>\n<p><img decoding=\"async\" alt=\"Signature\" src=\"https:\/\/files.jeffclarktrader.com\/global\/signatures\/jeff-clark-signature.png\" width=\"200\" style=\"max-width:200px; width:100%;\" \/><\/p>\n<p>Jeff Clark<br \/>Editor, <em>Market Minute<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The gold sector is the cheapest it has been in over 20 years.<\/p>\n","protected":false},"author":55,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"ep_exclude_from_search":false,"service":"","footnotes":""},"categories":[1],"tags":[],"publication":[10],"person":[7],"newsletter-type":[],"ticker":[],"class_list":["post-21621","post","type-post","status-publish","format-standard","hentry","category-uncategorized","publication-market-minute","person-jeff-clark"],"acf":[],"ai_tts_audio_outdated":false,"ai_tts_legacy_post":false,"_links":{"self":[{"href":"https:\/\/stage.jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/21621","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stage.jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stage.jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stage.jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/users\/55"}],"replies":[{"embeddable":true,"href":"https:\/\/stage.jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=21621"}],"version-history":[{"count":0,"href":"https:\/\/stage.jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/21621\/revisions"}],"wp:attachment":[{"href":"https:\/\/stage.jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=21621"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stage.jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=21621"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stage.jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=21621"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/stage.jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=21621"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/stage.jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=21621"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/stage.jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=21621"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/stage.jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=21621"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}