Glend, There is a reasonably good correlation if you chart GDX compared with EVN back to early January. Not perfect EVN usually is a few days behind the GDX but still very good.
I'm also using the inverse relationship between USD index and the GDX. Its fairly remarkable as well. I'll point out a few turning point to show you what I mean. 22 Jan USD(high)=99.8 GDX=13, 29 Apr USD(low) =92 GDX=25.8, 27 May USD(high) =95 GDX=22, 19 Aug USD(Low) =94.5 GDX=30, and currently USD= 95.5 GDX=26 . Not a bad inverse correlation at all.
On a monthly basis for USD index , the 9 month moving average peaked in February and has been heading down since. The 18 month moving average seems to have peaked last month and heading the same way. All that money printing has to have some effect.
So you can see my reasoning for the USD to hit 94 and maybe 93 in the next couple of month and the GDX to head back up towards 30 or higher pulling along EVN as well toward the 2.90's.
A bit convoluted but its worked in the past.
EVN Price at posting:
$2.52 Sentiment: Buy Disclosure: Held
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