Monday, June 15, 2009

Inflection Point: Gold vs. S&P


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The ratio of Gold to the S&P has been steadily climbing, as the S&P deterioriates on a relative basis against Gold. In the past few weeks Gold has been testing the 1:1 ratio. I beleive the ratio will make a double bottom here at 1, and catapult Gold back to the driver's seat. This means relative strength for Gold and absolute weakness for stocks.


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