A New Gold Trading Pattern Is Asserting Itself Over the Stock Market - Mike Swanson (08/28/2017)
Here is a funny fact for you. Right now the price of gold is up MORE than the S&P 500 is year to date.
And this is a fact despite the fact that everyone is bullish on the stock market and gold itself has been in a trading range capped by $1,300 resistance this year too.
Gold needs to rally through that $1,300 level to begin another real bull rally.
I think it can do it and will do it.
I talked with Jordan Roy-Byrne this weekend and he thinks so too. Interview posted here:
I want to show you two interesting things on the gold chart.
The first one is the correlation of gold to the S&P 500.
Since the DOW last made it's peak gold has been trading at a negative 0.84 correlation to the S&P 500.
This means that gold is trading opposite to the stock market right now.
In other words it is acting as a safe haven by going up when the stock market is weak.
The indicator below that is the relative strength of gold to the S&P 500 ratio indicator.
It is now going up too to show that it is outperforming gold.
I think gold is going to go up more and go up a lot once it goes through $1,300 an ounce, which will of course drive a huge move in gold stocks.
But at this moment in time I also see huge stock market risks coming that will help gold.
To make a long story short I think we are headed for a Fall drop that will be fueled by political instability in Washington DC.
I talked about that a week ago in a video I did last week:
The implications of this are clear.
There is ZERO REASON for anyone to be fully invested in the US stock market now.
And I believe everyone should have some money in gold right now.
Listen to the Jordan interview here:
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