Here are some of the most noteworthy highs and lows from across the markets for Friday, May 15, 2020.

Gold Bugs Index $HUI Hits 7-Year High

Biotech Index $BTK Hitting All-Time Highs

Growth Stocks Hitting All-Time Highs Relative To Value $RAG $RAV

Airline Stocks Hitting 7-Year Lows

Euro Banks Trading At All-Time Lows…Still

$GE Printing ~3-Decade Lows

If you’d like to see these charts as they come out in real-time, follow us on Twitter and StockTwits. And if you’re interested in the daily “all-access” version of all our charts and research, please check out our site, The Lyons Share. You can follow our risk-managed investment process and posture every day — including insights into what we’re looking to buy and sell and when. Plus, The Lyons Share SPRING SALE is going on so SIGN UP NOW & SAVE 25%! Thanks for reading!

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Gold speculators have gone net-short for the first time since near the beginning of the last bull market.

If rallies are born on skepticism, we may be about to see a gold rush. At least, that is an inference some are drawing from recent figures from the CFTC on trader positioning in gold futures. That’s because, as of 2 weeks ago, Non-Commercial Speculators adopted their first net-short position in 16 years.

The last time Speculators were net-short was exactly 16 years, in August 2002. Of course, that was also around the time that the last bull market in gold was getting kick-started. Over the subsequent 10 years, the metal would go on to jump 500% from those levels.

So are we about to witness another gold rush? In a Premium Post at The Lyons Share, we tell members how we use this CFTC data, including what it implies -- and what it doesn’t imply. We also look at some of the key levels to watch as potential support in the gold complex.

If you’re interested in the “all-access” version of our charts and research, please check out our new site, The Lyons Share. You can follow our investment process and posture every day — including insights into what we’re looking to buy and sell and when. FYI, our Pre-FALL Sale (25% OFF) is going on now  so it’s a great time to sign up! Thanks for reading!

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Gold & Silver Mining stocks have had a rough few weeks, falling in excess of 15%, after a sharp post Christmas rally. Are they in trouble or about to bounce of newly created rising channel support?

Below looks at the Gold Bugs Index (HUI) over the past few years.

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Gold Bugs index has created a series of lower highs since the highs back in 2011. Over the past year, the index is attempting to create a new series of higher lows and higher highs.

The recent decline in the index, took it down to 1-year rising channel (green shaded channel), where it might have created a "Weekly Reversal Pattern" (bullish wick) at (1) last week. This reversal pattern/bullish wick may be taking place at 1-year rising support. Each time the index has touched the bottom of this rising channel, it has created a bullish reversal wick. This potentially is the 3rd bullish reversal pattern/bullish wick, taking place at the bottom of the rising channel at (1).

Below takes a look at the S&P 500/Gold Bugs Ratio over the past 20-years. The ratio fell for nearly a decade, as miners were tons stronger than the S&P from 2001 until 2011. Over the past 6-years, the opposite has been true, as the S&P has been the place to be over miners.

Is the trend about to change? Is a major topping pattern completed? Check out the ratio below.

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The trend in the ratio has been up since the lows in 2011. Potential that a reversal pattern (bearish Head & Shoulders top) is in play.

Premium Members bought GDXJ at (1) and also own the Inverse Russel ETF (RWM), forming a pair trade of Long Junior miners and Short Junior Stocks.

Mining stocks have spent long periods of time out performing as well as under performing the S&P 500 over the past 20-years. From 2000 to 2011, the Gold Bugs Index (HUI) gained nearly 1,400% more than the S&P 500!

From 2011 through 2016, the S&P 500 out performed the Gold Bugs Index by nearly 150%. Below looks at the S&P 500/Gold Bugs ratio over the past 20-years.

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Let me make one thing clear at this time; the ratio has been moving up since the 2011 lows, which means that the S&P 500 has been stronger than Gold Bugs over the past 6-years.

Is it possible that the trend could be poised to reverse? Possible

The S&P/Gold Bugs ratio over the past couple of years, could be forming a reversal pattern (Head & Shoulders Topping Pattern), with the right shoulder potentially completed of late at (1).

The pattern is far from proven at this time. If the read would happen to be correct, it would suggest that the Gold Bugs index is poised to out perform the S&P 500 for a good period of time going forward. If the Power of the Pattern is accurate about this observation, it would mean owning mining stocks should be rewarding to your bottom line.

Gold Mining stocks started off the year like a rocket ship. Over the past 20-weeks, the popular Gold Miners ETF (GDX) has declined nearly 35%. This is one of its larger 20-week declines in its history! Create an opportunity? We think so!

This decline has the Gold Bugs Index (HUI) at a rare price point in the chart below.

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This Gold Bugs chart is based upon "Monthly Closing Prices" over the past 20-years. The Power of the Pattern reflects that a series of support and resistance lines are in play as a "Support Cluster" at (1) above.

This is a key support test for miners, that have declined nearly 35% of late. If  a miners bounce is to take place, this is a place where it can get started! One of the most influential currencies that impact Gold and Miners a ton, is the Swiss Franc. In 2011, the Power of the Pattern suggested that "Gold would be Flat to Down, for years to come due to the pattern in play in the Franc. The pattern in 2011 was big time important for the metals space and we humbly feel where the Franc is now, is just as important as then!

For this trend to change, Gold and Miners to break long-term down trends, what the Franc does right now (testing 15-year support), will send critical clues about the future of Gold, Silver and mining stocks.

Over the past 20-years, some "solid trends" have taken place, when one compares the Gold Bugs Index (HUI) to the S&P 500. Below compares the Gold Bugs Index to the S&P 500 over the past 20-years.

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From the mid 1990's until 2001, the ratio above fell, reflecting that the Gold Bugs Index was "weaker" than the S&P 500. At the time the trade was to be long the S&P and short Gold Bugs. A breakout of a 5-year downtrend took place at (1) and the Gold Bugs Index (Mining Stocks) was stronger than the S&P 500 for the following decade!

Over the past 5-years, the ratio has been falling, reflecting to be short mining stocks and long the S&P 500.

The ratio is now breaking out of its 5-year downtrend at (2) above, reflecting that the Gold Bugs Index is much stronger than the S&P 500 of late.

A breakout at (1) suggested to be long miners/short S&P 500 for years (nearly a decade). A breakout at (2), favors the trade to be long miners and short the S&P 500. Will it be different this time?