Market Extremes: Gold Is Going To Take On Stocks And More In Europe

Aibek Burabayev - Contributor - Metals

This time I want to share with you the technicals of the Gold/Stock index ratios for the United States and Europe.

Chart 1. Gold In Usd/S&P 500 Index Ratio: Landed or Not?

Chart courtesy of

As both Gold and stocks are hitting new multi-year extremes, I wanted to compare them in the form of a ratio to better understand where we are now on the chart.

This year the S&P 500 index pushed Gold down to a decade low just like the US dollar did. The chart looks similar to the Gold/$ chart, but the index has surpassed the currency. The Gold/S&P500 ratio corrected for a huge 78.6% setback while the Gold/$ ratio only corrected for a 50% setback, which means that stocks outperformed the cash. Continue reading "Market Extremes: Gold Is Going To Take On Stocks And More In Europe"

Closing the 2008 'Gap'

A disclaimer:  I am long and/or trading several regular 'bull stocks' (as well as short a couple).  Don't interpret the sober message below as a 'sell your stocks right now!' style bearish warning.  Indeed, after an expected choppy start to December I think more bull market mania, errr… rally, could still be ahead.  But it would be just dandy if people would keep their perspective along the way.

From the December 1 edition of Notes From the Rabbit Hole (NFTRH 267):

In 2008 market and economic participants suffered a hard downside 'gap' in the prices of their assets and in the levels of their expectations.  The bull market that began in March of 2009 is doing a fine job of closing that gap and fully resetting the herd from the utter fear mode of Q4, 2008 to a 2007 or even 1999 style greed mode today. Continue reading "Closing the 2008 'Gap'"