Tuesday, February 17, 2009

SPY:GLD correlation


It appears that gold and the SPX has traded at an inverse and will continue to do so. If you see the chart correlations here it's pretty compelling. You can see a few things.

1. There's not much support
2. The gap today (circled) indicates that this could be a breakaway gap for gold/spy.....leading up to the "crash" trade.
3. There's a definite reliable downtrend here that has broken out again and targeting the 70 level....leaving a lot more room on the table.

Going to be interesting to see how this plays out.

Futures up A/H at the moment but that could change once Europe opens. I still feel a downtrend.

HEY another thing to note. My HST got upgraded by RW today....that'll take out some of the supply from the market. This is a great company and should be trading 50% higher at least.

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