After an impressive run in oil, it looks like its time to consolidate. i think the mid 56's look like a nice place to put the next bottom in. should be a nice trade with dwt
Wondering what people think about this idea... Thedow hasnt budged this year in relation the what its priced in - dollars. Additionally, there is an interesting divergence between the two assets, as they have previously correlated to some degree.
2017 - Dow 19850 * 1.03 dollar = ~20445
current - Dow 21630 * .95 = ~20550
The candles are GLD, and are compared against the orange line, GDX. As you can see, gdx has been a leading indicator for gld/gold all year, and a pretty large divergence is starting to play out between them again. It would not surprise me to see a pullback in gold, especially since we just butted up against the long term downtrend line in the past few days. Short...
I think that we are nearing the end of a consolidation period and mining/gold stocks will take one last beat down to retest their 2016 lows. After that, we should break the long term downtrend and achieve prices that reflect the actual values of the metals, not the manipulated values. Let me know what ya'll think - I'm bearish in the short term and bullish long term
