If you are a GOLD Bug, then you know who Rob Mcwen is. You then also know that his favorite chart is a chart of the DOW:GOLD ratio. During any of his presentations, he pulls out this chart to state his case why you should be investing in GOLD. Let's take a look 3 different time frames:
The daily chart is showing a 50% Fibonacci retracement followed by a breakout.
On the weekly chart, the Bollinger Bands are tightening and the ratio is approaching the long term down trend line. Decision point is around the corner ...
Definitely a decision point is right around the corner. However, the charts at this point are favoring a resumption of the uptrend that started in March 2009. Inflation? Reflation?
Let's take a step back ...
Step way back and take a look at the last 200 years - DOW:GOLD Ratio
An Investment View of Trading
1 day ago