Swiss Franc and Gold
Most articles on gold mention the inverse relationship between gold and the dollar, or the lockstep relationship between gold and the Euro, very few talk about Swiss franc. Those who have read my articles in the past know that I prefer SF over Euro as a tracking indicator for gold. Because like gold, the Euro has been heavily sold short by the commercials in the past four years, with no net long positions ever taken since this new bull market began. SF meanwhile has been hedged both from the long and short side, correlating closely to the price movement of the bullion.
CNL - commercials net long
Pretty good wouldn't you say? And with gold stocks?
Simple, isn't it?
The same with most precious metal mutual funds.
Perhaps someone in the know can explain why SF tracks bullion so perfectly, and why commercials hedge both ways in SF and yet not in Euro or bullion. As a technician, I'll work this model to death until it doesn't work anymore and leave the story to the storytellers.