Ratio of these two assets with a long time frame. Important to realize we feature both the inflation of the 70s and the crashes of 2001 and 2008 to reference as extreme levels of sentiment. Still room for SPX to run before hitting the basement or maybe gold declines or they meet in the middle, but the trend is running low on technical space. Thanks datadash for...
Expecting a correction in this pair to trendline( red line). SP overbought, Gold in a correction at the moment and oversold. 2:15-2.2 resistance. Lower low next. What do you think ?
The unprecedented rise in stocks despite worrying earnings from the broad market could have a few explanations. Likely the reason for the "bubble" in the price of the S&P 500 is the intervention of the Fed. By looking at an SPX/GC1! chart, we can see the market with a lack of devaluation of the dollar. The market is in a converging triangle that will determine its...
Markets might be rallying in Dollar terms, but when priced in gold... well it makes you think.
Inflation? Currency worries? Safety? What is the big money doing buying stocks or gold?
All of these questions are on the table and what I find most interesting about this chart is how severed the downtrend is. Perhaps even before the Coronavirus hit, some big...
1.50 on the ratio is crucial. US stocks priced in gold have performed terribly over the last 20 years.
Stocks up, dollar down, costs up = is this a win?
Below are three charts, the first depicts what i call the "Robinhood Investor" or the "Millennial Investor" which consists entirely of long equities, in this case the SPX. The second chart depicts a classic "60/40" allocation to stocks and bonds (in this case TLT, which i will come to in a moment). The final chart visualizes a portfolio of 80% equities and 20%...
This is a a very interesting chart today, on the left we have the SPX as of present time (monthly), in the middle we have the SPX/ GOLD ratio (monthly) and on the right we have the SPX chart during the period of the tech wreck (monthly) from 1996-2001.
SPX: Then and Now
Firstly i want to draw your attention to the previously stated rising support and...
The SPX/ Gold ratio is looking like the rally in equities may be hitting it's head on some resistance.
The price action is driving closer towards the overhead trendline of the descending triangle pattern, this will be an interesting level to watch, as a rejection at these levels would suggest an easing in equities and a relative gain in gold.
It is my personal...
SP-500/ Gold - #ValueCycle Analysis
*Note that the vertical price axis reflects the number of ounces of gold required to purchase 1 share of the SP-500
*I understand there is a lot going on with this chart, but bear with me as i walk you through it (see worked example below)
Macro Analysis: Lower Chart
- After the lunacy of the tech wreck in the late 90's...
This is a straightforward macro study showing the performance of S&P against Gold.
We see that from 1980 to 1999/2000 S&P outperformed Gold, while from 2000 to 2011 Gold outperformed S&P. We are currently (since 2011) in a stage where S&P is again outperforming Gold and the uptrend may soon break higher in a parabolic move.
The conclusions drawn are that S&P is...
