XAU ( Gold Stocks)

Today one of the strongest groups were the gold stocks..The XAU index rose 3.75% today.. Even though gold was strong today, I have to still remain on the bearish side as long as the XAU remains below the trendline... In the chart above we have the XAU index on top and Gold futures on the bottom... Notice how the two are trading together and tend to make turning points at about the same time.. I like when markets trade this way because when one of them diverges, it presents us with powerful information...We don't have any divergence at the moment, but when and if it does happen I will write about it here..stay tuned!