• 519 days Will The ECB Continue To Hike Rates?
  • 519 days Forbes: Aramco Remains Largest Company In The Middle East
  • 521 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 921 days Could Crypto Overtake Traditional Investment?
  • 926 days Americans Still Quitting Jobs At Record Pace
  • 928 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 931 days Is The Dollar Too Strong?
  • 931 days Big Tech Disappoints Investors on Earnings Calls
  • 932 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 934 days China Is Quietly Trying To Distance Itself From Russia
  • 934 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 938 days Crypto Investors Won Big In 2021
  • 938 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 939 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 941 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 942 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 945 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 946 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 946 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 948 days Are NFTs About To Take Over Gaming?
  1. Home
  2. Markets
  3. Other

Quick Chart Checkup




1) Although downtrend line and heavy resistance in the Dow-Gold ratio (monthly chart) are within spitting distance, the relative strength in stocks continues unabated. This tells us not to expect a reversal of recent fortunes overnight. It also tells us that stocks are not likely to roll over and dramatically under-perform gold in the near to intermediate term. 2) The Gold-Oil ratio (monthly) is a different story, where the barbarous relic looks short-term bullish and relatively strong. This trend, if it continues, would help the bottom lines of gold miners, who are as energy dependant as a business can get. 3) The bond herd has received its wakeup call over the last several sessions in the form of the Fed's jawbone. 10 year yields have broken the recent downtrend, but the ratio between long and short rates is critical to asset allocation. The yield spread (daily) sits at resistance while continuing to bullishly diverge. 4) We never tire of presenting this little warning chart; the VIX (weekly). One by one the bears are capitulating as FrankenMarket staggers higher, while at the same time the VIX' status is unchanged; double bottom in '05 and a falling wedge down to support. It pays to remember that this game is about risk vs. reward and not trying to capture the last 5%. Smart money buys major bottoms from scared retail and at tops the opposite happens. Do you think stocks offer a good risk/reward profile now, regardless of whether or not they have higher to go in the near term? Relevant symbols to the above are DIA, GLD, SHY and IEF.

 

Back to homepage

Leave a comment

Leave a comment