Home > Articles > Volume 14 (1996) > Chapter 10 (October 1996) > V.14:10 (441-449): SIDEBAR: The K-Ratio Precious Metals Switch Fund

V.14:10 (441-449): SIDEBAR: The K-Ratio Precious Metals Switch Fund

V.14:10 (441-449): SIDEBAR: The K-Ratio Precious Metals Switch Fund
Item# \V14\C10\SIDEKRA.PDF
$2.95

Product Description

In the July 1996 STOCKS & COMMODITIES, Jay Kaeppel described a technique for evaluating gold stocks using the Barron's Gold Mining Index (GMI) relative to gold bullion. He showed that analysis of the ratio between the GMI and the price of gold bullion could establish favorable and unfavorable outlooks for the direction of gold stocks and gold bullion. Nelson Freeburg modified Kaeppel's method, which he referred to as the K-ratio, and developed a trading system for the gold stock's group. The following discussion details Freeburg's precious metals switch fund system.

The first step in the trading system is to calculate the K-ratio. The K-ratio is the GMI, found on the "Commodities and Financial Futures" page in Barron's , divided by the price of gold. The specific price is the Handy & Harmon quote listed on Barron's "Market Laboratory Economic Indicators" page. This ratio is used as the key indicator for the trading system, which is actually a dual band model.




FOR THOSE ORDERING ARTICLES SEPARATELY:
*Note: $2.95-$5.95 Articles are in PDF format only. No hard copy of the article(s) will be delivered. During checkout, click the "Download Now" button to immediately receive your article(s) purchase. STOCKS & COMMODITIES magazine is delivered via mail.

Take Control of Your Trading.
Professional Traders' Starter Kit
All these items shown below only $495!
  • 5-year subscription to Technical Analysis of STOCKS & COMMODITIES, The Traders' magazine. (Shipping outside the US is extra. Washington state addresses require sales tax based on your locale.)
  • S&C on DVD 12.27 plus next year's upgrade FREE!
  • 5-year subscription to Traders.com Advantage.
  • 5-year subscription to Working Money.
  • Free book selection.
    • Save up to 54% by purchasing today. Limited time offer. By purchasing today you also receive your choice of one volume from the Professional Traders' Series (Volumes 1-17 or Charting The Stock Market) for FREE!

    NOTE: Use the "comment" field during checkout to tell us which book you would like to receive.

    Click Here to Order
    You save $502.31 plus the value of the book you choose over the regular price of these items. Offer ends soon.