He is not showing the 1970s. SPX/Gold ratio has long term bearish signals. That is when gold outperforms and does well. In 1980-2000 and 2011-2022 this ratio was in a bear market. That explains why his signals are bearish.
Falling interest rates...oh wait...not an option any more. Then when rates rise gold will boom.
Preliminary targets are from $4,500-$6,700 if rates can climb.
newlowobserver.com/2018/02/pβ¦
Two conclusions from the post below by @sentimentrader:
1) Mean reversion (dead cat bounce) in the short term.
2) Trend continuation (bad performance after one year) in the long term.
As an aside, the Dow Theory signaled the trend for gold as bearish on 6/9/36.
Trends tend to persist.
Gold was part of the liquidation.
The metal is now down 24% from its high. Since 1980, similar drawdowns showed a 70% one-month win rate, but only 30% were higher a year later.
Relief was not repair.
Could Crude Oil drift higher in the months ahead? Of course. BUT FWIW, our Crude Oil sentiment indicator suggests lower prices 6-12 months from now. @sentimentrader
International vs. U.S. stocks. Int'l:
a) Broke out to the upside
b) Pulled back
c) Tested 50-week ratio MA
d) Ticked higher
No predictions, just note that trends in this relationship typically last for years.
NOW is the time to pay attention to this relationship.
@sentimentrader
Payroll beats above 87k have a gold aftershock.
Gold was positive 79% of the time six months later after similar beats.
Bonds took the release-day hit. Gold showed up later.
A limited-time offer is coming soon. Stay tuned: sentimentrader.com/pricing
What do you think? If you could get 1000 Silver ounces or 1 Bitcoin today and you HAD to sell it in a year, which would you choose? Heck, I'll do a poll.