Gold versus Crude Oil - 1 ounce of gold buys 25 barrels of oil.
When Gold gets you 22+ barrels of Oil = Buy Crude
Time to Buy Crude with your Gold Holdings!
10-Year Level of Valuation Here = Time to act NOW.
Tim 1/7/2015 3:06PM EST Wednesday
24.92 Ratio of XAUUSD/CL1!
Comments
timwest
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As for timing - if you see "range expansion" like we are seeing this week, you can wait for an additional 3 weeks for this move to end. NOTE ALL THE OTHER RANGE EXPANSION WEEKS and see that the market continued another 3 weeks. However, given the absolute level where we are trading, this is a solid enough level to act with confidence. If oil continues for another 3 weeks, then it just gives you more oil to buy if you spread your entry out over time. I am not trying to be a hero here and call this the bottom, but I am saying this is an excellent risk/reward level to begin. I'm hearing everyone talk everywhere I go about oil going lower, but I didn't hear them say that when prices were higher. The momentum of prices is finally giving everyone a level of confidence that it is worth starting now to take advantage of a WINDFALL situation.
SS96
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you only have 7 years of historical data. too small of a sample!
SS96
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imagine if '09 TOP does not hold!
jangseohee
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i am in talk with a bank to refinance my house for a period of 2.5 years, ready to "Show Hand" for long if Oil falls below 30 :-)
SS96
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pretty dumb idea to use your house to finance trading.
timwest
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If anyone invests and also has a mortgage, then in fact that is what they are doing. So, I voted down your comment. If you are a wise speculator, then borrowing to buy a house (and fund your Investment Account) at ridiculously low interest rates is a very smart decision.
jangseohee
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Sound fundamental logics
justatrader
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You mean use part of the mortgage funds to fund investments vs. trading with a smaller capital or taking a loan directly?
Kautilya
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Tim, your posts have rationale and insightful analysis. Thanks again for all your analysis and charts.