This post is a sample of our Gold & Silver Premium service. It comes from last week’s premium update:
We track options data (put-call ratios) from the International Securities Exchange. Their options data provides a better contrary indicator than options data from the CBOE. Below is a chart of GDX along with the put-call ratio from the ISE. Rising put-call ratios or spikes tend to provide bullish signals when they occur after a market has been falling. We use this data in conjunction with regular technical analysis. Note that the put-call spikes at the end of October signaled a bottom in GDX. We think the same thing has just happened now.