Dow Versus Bonds.
Measure whether Dow is overbought or oversold versus Bonds.
It doesn't matter which one we use, I just use 30 year for simplicity, similar chart for 10 year.
Able to pinpoint relative high and relative low.
Relative high region is where one needs to be cautious and take profit.
Relative low region is where dow looks cheap and may be suitable to get into the market.
Interesting observation.
Try to imagine doing Artificial Intelligence on this kind of chart and doing complex calculations.
Measure whether Dow is overbought or oversold versus Bonds.
It doesn't matter which one we use, I just use 30 year for simplicity, similar chart for 10 year.
Able to pinpoint relative high and relative low.
Relative high region is where one needs to be cautious and take profit.
Relative low region is where dow looks cheap and may be suitable to get into the market.
Interesting observation.
Try to imagine doing Artificial Intelligence on this kind of chart and doing complex calculations.