The Dow Jones (IA) / Gold Ratio and the U.S. 30-year Treasury Bonds / Russell2000 Index Ratio are coinciding at key levels. Both ratios are at historic turning points, foreshadowing their respective Phase Transitions! (and as such, indicating highly volatile, multi-standard deviation moves in the global equity indexes.) The title chart is an extended (120 years)...
We love watching this chart because it is very accurate but does not trade alot. We are currently following this trade set up both in an account and on paper.
The Trade:
Oct 1 2018: Buy $10,000 worth of XAU or roughly 8.3 oz
March 25 2020: Sell those 8.3 oz (now worth $13,494) for DIA @ $214.x or 63.2 shares
Today March 10, 2021: Those 63.2 shares of DIA are...
Self explanatory.
... thus, one may need to resort to this ...
... soon!
Corollary to the above (Safe Havens)
Although this is a FLAT (minor Long) here, for now. - But only briefly!
... and since this is telling you that Gold is to continue significantly lower from here ...;
... it stands the reason that the Dow is about to go for an outright dive! - As the...
We may have just seen a key breakdown in the Dow/ Gold Ratio.
This would signal that the period of sustained out performance of stocks over gold, and indeed precious metals as a whole may be nearing an end.
As you can see on the left hand chart, a monthly cross of the 10 and the 50 moving averages was a strong tell that the trend had reversed, interestingly,...
