Forget GLD/OIL ratio, LUMBER/GLD as your new crash indicator!

Just listened to a great interview on the Market Huddle podcast feat. Michael A. Gayed from the Lead / Lag report. Great interview!

So one of his leading indicators discussed was the LBS / GLD ratio and it actually correlates quite well. Although it predicted the 2018 Christmas crash much more distinctly (with a slight trend break down to the trend line false positive in early 2018), but with each major trend breakdown or breakout it 100% confirmed SPY continuation. As for the most recent indication for the March crash, there was a quick gap down in LBS / GLD ratio during the consolidation triangle (indicated exhaustion), even though it didn't formally break until a 10% drop in the SPY .

Scary thing is what's happening now. Bounce to near recent highs, then either a breakout or consolidation into a cup and handle . That likely means we're going to correct again down for some consolidation (as a 3 touch breakout in this formation is typically a little too aggressive). Target is in the 13's, which would put the SPY somewhere between the stratosphere and moon.

Let the melt up continue!


TMoneyBidness barry-goodknight
@barry-goodknight, Wow, a tip, thank you! I greatly appreciate it. It seems when LB/GLD gaps, the market follows. I'm 100% going heavy the next time it happens.
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