Gold Stocks - Follow the leverage

While the recent attempt to break the previous swing high lacked the necessary energy for a clean break yesterday, see for once relax, money flow indicators such as the junior to major ratio (JMR) suggest that it is only a matter of time before it will be tested again.

The power down trend (PUT) of the JMR has been broken. This suggests that gold money flows are seeking leverage to the rising price of gold. I expect this ratio, like the price of gold, to back and fill before technical confirmation (a green stick) is generated. It's only a matter of time before the 5/12 swing high around $1250 is decisively broken to the upside.

Junior to Major Gold Stock Ratio: