Intermarket ratios – Gold vs S&P500


Bullish flag breakout on this ratio after an year of consolidation. If this ratio continues its uptrend then gold has to skyrocket!

Advertisements

2 Responses to Intermarket ratios – Gold vs S&P500

  1. einstein says:

    How does this help in your trading? You are taking a derivative and getting a ratio of it, and comparing the standard deviation of that ratio to determine the movement of one or more of the underlying. What does a MACD on a ratio mean anyway ? Just curious because i never understood how this type of analysis helps…thanks for your posts

  2. trendroom says:

    this is a more like macro view …..what helps ? chart tell the story … long Gold short SP500 …when the trend bends …cover shorts in stocks and exit long

    such intermarket ratios are widely used by macro hedge funds … they finance long positions in one asset with respective shorts in other one!!!

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: