Today King World News is pleased to share a fantastic piece which give readers a remarkable view of the war in gold, gold mining, junk bonds, REITS, and a cautionary note on China. This piece also includes two key illustrations that all KWN readers around the world must see.
June 2 (King World News) – "Several of the most active ETFs had extreme flows in May. Among them were gold-related funds like GLD, GDX and GDXJ.
Looking through the final figures for fund flows among the most active ETFs for May, a few things stick out. The most notable is the abandonment of gold-related funds. The GLD fund suffered outflows, as did the gold miners, GDX and GDXJ. With more than $1.5 billion leaving those funds over the past 20 days at the end of May, the outflow was one of the largest in the past five years.
A Major Gold Mining Buy Signal?
The chart above shows the combined flow from those three gold-related funds, compared to the price of the gold miners fund, GDX. There were a few failures, but mostly when the outflow got this large, it was a contrary signal for GDX, and gold miners tended to rally from such an exodus.
Of the 14 times that the combined flow in those fund exceeded – $1.5 billion, GDX rallied over the next 1-3 months 10 times, and failed to see any upside 4 times. It just recently exceeded that threshold again, suggesting a higher probability of a rally than a failure.
Junk Bonds & REITS
Other funds that showed an extreme flow were junk bonds, which we look at in the May 14 report. The outflow has been staunched since then, but it was still extreme for the month.
Also interest-rate related, the Vanguard REIT fund, VNQ, suffered its worst 20-day outflow in at least 10 years, nearing $1 billion. The previous record was just over $900 million in June 2013, preceding an approximately 10% rally in the fund over the next couple of months.
Cautionary Note On China
On the other side of the ledger, the biggest winners in terms of inflows were health care, technology and China. FXI (China) enjoyed its largest 20-day inflow since January 2013. While it has seen larger inflows in its history, the way it has been going over the past week, it could quickly match or exceed its prior extremes.
Over the past few years, big inflows have tended to lead to periods of declining prices for FXI, so something to watch for traders in that fund." This is just a portion of one of the latest fantastic reports. To try a free 14-day trial of the internationally acclaimed work that Jason Goepfert produces at SentimenTrader simply CLICK HERE.
KWN has now released the extraordinary audio interview where Michael Pento discusses the coming global financial collapse as well as what investors can do to protect themselves and you can listen to it by CLICKING HERE OR ON THE IMAGE BELOW.
KWN has now released the fantastic audio interview where Dr. Roberts discusses one of the greatest periods of crisis that the world has ever seen, gold, silver, and the dangerous events taking place around the globe and you can listen to it by CLICKING HERE OR ON THE IMAGE BELOW.
***ALSO JUST RELEASED: Bill Fleckenstein – We Are Now Confronting Lunacy On A Daily Basis, Plus A Bonus Q&A CLICK HERE.
© 2015 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. However, linking directly to the articles is permitted and encouraged.
The audio interviews with Michael Pento, Dr. Paul Craig Roberts, Gerald Celente, Eric Sprott, Robert Arnott, David Stockman, Chris Powell, Andrew Maguire, Rick Rule, Bill Fleckenstein, John Mauldin, Egon von Greyerz, James Turk, Dr. Philippa Malmgren, Marc Faber, Felix Zulauf, John Embry and Rick Santelli are available now and you can listen to them by CLICKING HERE.