What these charts show you is who's winning. Most traders like to bottom fish...All successful traders I know buy the winners.
One issue with taking these charts at face value is the results can change if you change your BASE instrument. Also kep in mind that if you were buying oil, platinum, Gold etc it's not a direct comparison to if you were buying SPY for example. If these are the instruments you trade then it's a good picture. If someone was trading stocks putting all the major sectors on the chart would tell a clear picture. Then you would drill down to the top two or three sectors to their sub sectors. The you could take it to individual stocks in the top sub sectors. That strategy is a winner...Opposite would be true in down trending market.
FYI Two of the most successful traders of our time who don't share there analysis with each other....Both forecast Oil, Copper reaching new all time Highs. Gold Rallying, and I think Platinum reaching New All time Highs. They back up their analysis with "Big Money" consistently buying and increasing there positions...
ZigaZaga
⋅
Thank you, Chris - that's an educated conclusion! Having played with these comparative charts, I realise how misguiding they can be, even though the data is correct at a given time frame. I don't quite see how the relationship could change by changing the base instrument, given a constant time frame... Well, I'm certainly not trying to fit this to any agenda or conviction of mine.
I got the idea from a chart where someone found that gold drops back whenever it reaches the price of platinum. I was also curious about the insane performance of silver over the years. I'm just trying to catch a trend early so that I can build on that... I have heard of sequences and patterns in metals - but couldn't remember what follows what in what order etc.
The weakest equity in the weakest sector... Is that a strategy you use? I expect you'd better off deducing those on finviz.com ?
What these charts show you is who's winning. Most traders like to bottom fish...All successful traders I know buy the winners.
One issue with taking these charts at face value is the results can change if you change your BASE instrument. Also kep in mind that if you were buying oil, platinum, Gold etc it's not a direct comparison to if you were buying SPY for example. If these are the instruments you trade then it's a good picture. If someone was trading stocks putting all the major sectors on the chart would tell a clear picture. Then you would drill down to the top two or three sectors to their sub sectors. The you could take it to individual stocks in the top sub sectors. That strategy is a winner...Opposite would be true in down trending market.
FYI Two of the most successful traders of our time who don't share there analysis with each other....Both forecast Oil, Copper reaching new all time Highs. Gold Rallying, and I think Platinum reaching New All time Highs. They back up their analysis with "Big Money" consistently buying and increasing there positions...