Thursday, April 16, 2009

The Dow's Weight In Gold

The chart below represents the relationship of the Dow Jones to an ounce of gold. Things to note...very long uptrend broken (white line), very long support/resistance line broken (light blue), well below average since 1979 lows (green line), we are at a 30% retracement from most recent low (cyan text) which compares well with all previous major retracements in this down-cycle... a fat juicy extrapolated target seems to be waiting for the DOW below 5000 and Gold over $1000?

The same from 30,000 feet: we are still way too high for the average downturn....
Buy Gold, sell not-Gold?

hat tip Tim
Sphere: Related Content
Print this post
blog comments powered by Disqus