Gold/Stocks ratio: Long gold, close equity longs/find shorts

28 avr. 2016

This ratio gives very timely signals as to when to more optimally switch between risk on or risk off biases.
It's clear that we can long gold, bonds and yen now, I'd be careful with equities, at least not going long indexes, or looking for shorts in weaker securities would be my favored approach.

I have booked profits on a few profitable long trades, and reentered gold and bond longs.
Waiting for an optimal entry to long Yen again. I did short it after the BOJ news, but I have covered for now since we found support at the previous lows.
Check my other publication for the suggested long entry and stop locations for gold longs.

If interested in my trading signals, or in personal tuition, contact me privately. I'm offering a considerable discount on a packaged course which includes access to my private trading signals list for a year.

Cheers,

Ivan Labrie.

29 avr. 2016

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Surging...

29 avr. 2016

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This ratio has excellent predictive power.

30 avr. 2016

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3 mai 2016

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Very clear theme going on, risk off. This ratio chart is a great indicator of sentiment.

10 mai 2016

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This ratio now indicates that sentiment hasn't fully shifted away from risk on.
Not a good time to long gold, specially not if we fall under the horizontal level below, that could signify a considerable decline in it is coming.
The speedline held, even though the trendline broke initially, there wasn't enough follow through to carry gold (and thus risk off sentiment) accross previous monthly resistance.