Gold/Stocks ratio: Time to short Gold and Long S&P500 soon
Updated
Many people will think this post is insanity, but I'm simply revisiting, and zooming on a very interesting setup I had detected some time ago.
This is a ratio chart of the S&P500 index compared to Gold. The risk off sentiment is reaching a very vivid extreme here, and like anything else, it trends with Time at Mode concepts.
I'm interested in monitoring it since we're very close to a projected target for it, and also, close to the time expiration of the last uptrend signal.
If we see a drastic turn once either (or both) targets are hit (time/price), we might be able to capture a great long term entry in this ratio.
Refer to related ideas for the monthly view.
Cheers,
Ivan Labrie.
This is a ratio chart of the S&P500 index compared to Gold. The risk off sentiment is reaching a very vivid extreme here, and like anything else, it trends with Time at Mode concepts.
I'm interested in monitoring it since we're very close to a projected target for it, and also, close to the time expiration of the last uptrend signal.
If we see a drastic turn once either (or both) targets are hit (time/price), we might be able to capture a great long term entry in this ratio.
Refer to related ideas for the monthly view.
Cheers,
Ivan Labrie.
Note
Two days left, target not hit yet.Note
Nice turn so far.Note
Target hit, one day left.Note
Right on the last day, we see a turn...I think this is it.Note
A break under yesterday's low would seal the deal.Note
Let's see how this one progresses. I hope people managed to catch the trade, the idea was to buy S&P500 and sell Gold, or buy S&P500 with gold if you had longs.Currently a profitable trade. (same as buying oil with gold, which I did take myself)
Note
Two new lows...the deal is sealed.Note
Anyone took this pair trade or the oil/gold one?Note
This and oil/gold are acting great as pair trades. Not a bad idea to hold the pair setups.I'm flat atm, on those, but I am in correlated trades.
Note
Trendline about to break down.Note
Trendline held for now.Note
Trendline finally crossed...now if we close below it, this is a big deal!Note
Closed below, now retesting, pay attention, gold might be a short.Note
Time to monitor this ratio closely. I suspect the market is turning down here, if you trace a trendline you might get some timely warnings here.Note
Note
This ratio keeps telling you when to long gold...now is the time.
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