bountyhunter21

Stocks vs Bonds & Copper vs Gold - Bounty for Global equities

Long
SPY/TLT  
SPY/TLT  
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1
Fellow Bountyhunters,
Two charts that tell us what can happen to the global equities is posted here.
Chart on left is the relative ratio of Stocks vs Bonds. One can see PRICE ACTION rising to the north after bottoming and testing some resistance as of now. If they breakout then we have a continuation and and this can possibly indicate continuation of the rise in equity markets.

Chart on right indicates the relative ratio of Copper vs Gold (Miners). Copper moving North is bullish for equities and it usually is a leading indicator of global economic health and this chart shows the relative ratio against Gold which is considered a safe heaven asset. Price action has bounced off of previous low but made a lower low and now making higher highs on its way to the North. If this continues we can expect a gala time with global equities.

Gold and copper tends to move in the same direction (Observe on multi year charts), but copper is more volatile unlike Gold and likely to react to fundamentals more quickly than gold .

This is an observation from my analysis of multi year charts and one must use this as a supporting information to increase allocation(IF) to equities vis a vis other asset classes.

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