Dowgoldratio
4-digit Dow (DJIA) - SHORT; Let the (long!!) descent begin!As the ol' southern colloquialism would have it: "Darn theng (The Dow) is fixin' to be done foh, rat cheer, right about naw!"... And this where the Long March (to < 9999) bound to start, rather sooner than later. (There is also a perfect Fib. Time Cycle lurking in the background. - Look closely!) If one is afraid to Short the index outright, no problem! - You're in luck. Just (continue to) SHORT the DJIA/Gold Ratio that is already well on it's way, still with miles and miles to go (down), with no end in sight. Here is that post;
DJIA/Gold Ratio & 30-year Bonds/Russell2000 in Phase Transition!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) view of the ongoing DJIA / Gold analysis, this time applying the same metric as used in the earlier US 30-year Treasuries / Russell2000 Ratio analysis;
... For easy comparisons.
U.S. Market Capitalization / U.S. GDP now having exceeded 2.75 while the Historic Norm (not the low) remains 0.78 - i.e. ~70% below current levels(!!) - , it is rather self-evident that these phase transitions are likely to result in major (equity) market declines, and on a global scale. U.S. Margin Debt / U.S. GDP has also surpassed all previous, historic records (by a very wide margin!), not only in nominal measures but also in relative terms! I.e. Once this trap door opens (forced liquidations??... The most likely, least resistance path, catalyst) an initial 20%-25% decline in the SP500 would be well within the minimum expected.
Gold might soon shine againGold had a downturn at 19,19% and stayed in correction sentiment, but were close to bear sentiment (20%+ fall in price from the top) .
Around price 1676$ it saw massive technical support. The technical support where in these 3 types:
- Trendline from previous lows.
- Fibonacci 0,618 based on lows from March 2020.
- Bollingerbands 1000,3 based on 4-hour chart.
After touching these 3 types og technical support, it had a small bounce back to around price 1750$. After that i felt, but this time i made a higher low with around 5$, even considering that the dollar-index rose around 1% during that same period. This priceaction made the pattern of a double-bottom as well.
I think this is a long-term view bottom, based on the technical analasis, but also on the fact that the Dow:Gold ratio at the time is 19,16 (33153$/1730$) and everything over 15 is considered as a buy oppotunity in gold.
How much it think will rise, is hard to say, but my first target would the previous high (2074$) and the second target would be around the 1,618 fibonacci expansion (2320$).
My stoploss would at the price 1670$ as a speculator, but as a long term investor in physically gold, it would be at the price of 1000$.
Disclaimer: This should not be seen as investment advise, i don't take responsibility of any other persons actions, the thing i post i just my personal ideas and should not be seen as anything else, i am not a professional investor, and do not offer investment advises.
If one trade could net 100% profit - DIA/XAUWe 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 worth $20,160 or right at 100% profit
There are not many trades in this of course right now we are running up to another buy gold sell the market phase but caught in between. The sell the market buy gold happens above 22 and the buy the market sell the gold happens anywhere below 13 comfortably.
Happy trading
DOWGOLD Ratio - SHORT; Look where it is sitting!What "global recovery"??... Are "they" serious? - Of course not. But it is entertaining, that much is true.
Going long Game Stop makes a great deal more sense than owning US equities - or any other, for that matter.
(At least a case can be made for he former .)
... and here is one (among many!), reasonably reliable Risk On(Off) FX pair ...
... which says that the title chart just hit the wall.
DJIA/GOLD Ratio - SHORT; The Dow's developing cliff-diveSelf 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 main chart in this ppost would suggest.
How DJI/GLD gonna be?DJI/GLD will proximity went below 10.
The bearish trend of DJI/GLD will continued after a slightly 0.382 rebound (CD) of the downtrend (BC) and hits the resist at 16.5, which is the lower edge of the bearish triangle (head and shoulder reverse signal).
As the rebound hits the resist, the trend will conversely go bearish and expected target would be 1.618 of the recent rebound (CD). In the meantime, the downtrend will also be a 0.786 of the long-lasting uptrend (AB) from 2011 to 2018.
Hence, the DJI may decline while the gold boost. My expected target of DJI would be around 20,000 after the recent v-shape rally and gold will be above $2,000 per once by continuing the rally from $1,450 since March.
Let's observe what will happen with my expected DJI/GLD trend which will possibly go through the second-half of 2020.
DOW GOLD RATIO - Key BreakdownWe 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, this cross occurred several years after the peak in stocks.
We may be about to witness a similar signal today, this is predicated on the cross taking place, of course.
in the more immediate future, i would hazard a guess that stocks will stage a strong short covering rally, before petering out, unless there is news related to either progress on containing the Coronavirus or on global CBs mounting an even more desperate attempt to prevent the deflation that is bound to stem from the virus' impact on global supply chains.
That being said, free money will not produce more goods or services, and will most likely signal higher than anticipated inflation in the future, particularly once the virus is contained, more than likely driving gold higher on more traditional inflation fears.
To the right we can see a weekly chart, highlighting the severe technical damage that has been done, with the ratio below the 200 weekly moving average.
All of this with a backdrop of the gold silver ratio hitting over 100 in the last day or two, makes for quite a bullish environment for precious metals and a rather bleak outlook for equities.