....as Gold (indicator of danger) goes into hiding,
Dow (Indicator of Entrprenuerism) comes out to play...
Firstly, apologies, the chart is a mayhem of lines and colours just like the market at the moment, but if you bear with me I like to show the relationship of Gold, Silver and Equites, namely Dow Jones Index($DIA).
Firstly, apologies, the chart is a mayhem of lines and colours just like the market at the moment, but if you bear with me I like to show the relationship of Gold, Silver and Equites, namely Dow Jones Index($DIA).
The green line symbolizes the general downward trajectory of Dow since Silver and Dow Peaked and tanked in May, together with Osama Bin Laden's assassination.
The blue line is gold with a exponential push higher in July where risk is at it's highest, US and Europe financials at its most dangerous.
Silver not lined or colored, had peaked in May. Now, Five months later, Gold is seen to have peaked. Silver has since gone into a corrective phase. The current peak of the correctIve rebound in Silver coincides with the Wave 5 peak in Gold. The danger is over or is perceived over. Whatever it is, Gold, no longer needs to play the "Store of Value" in bad times. The Hedger in bad times. It can now take a rest.
Generally speaking, filtering out the noise in the charts reflective of the market, as Dow heads south in a corrective a-b-c zigzag Elliot wave , Gold heads North in a final exponential wave 5 push which is conform with bearish divergence on it's daily chart. ( ck out previous post )
But take a look at what's happening now, with Dow at it's most volatile with plus minus, couple of hundred points, any weaker soul would have thrown up, Gold has been turning south, seems like it has put in a wave 5 top and has peaked.
Reversal of Fortune ?? Could Gold's price action foreshadow Dow subsequent and coming rally ? Logically it should. The smart money is positioning now for the coming rally in Equities. Withdrawing from the "Gold Bank" to invest in dividend paying Equities where real and tangible stuffs happen
So at least for now, expect a reversal of gold and Dow chart......
The blue line is gold with a exponential push higher in July where risk is at it's highest, US and Europe financials at its most dangerous.
Silver not lined or colored, had peaked in May. Now, Five months later, Gold is seen to have peaked. Silver has since gone into a corrective phase. The current peak of the correctIve rebound in Silver coincides with the Wave 5 peak in Gold. The danger is over or is perceived over. Whatever it is, Gold, no longer needs to play the "Store of Value" in bad times. The Hedger in bad times. It can now take a rest.
Generally speaking, filtering out the noise in the charts reflective of the market, as Dow heads south in a corrective a-b-c zigzag Elliot wave , Gold heads North in a final exponential wave 5 push which is conform with bearish divergence on it's daily chart. ( ck out previous post )
But take a look at what's happening now, with Dow at it's most volatile with plus minus, couple of hundred points, any weaker soul would have thrown up, Gold has been turning south, seems like it has put in a wave 5 top and has peaked.
Reversal of Fortune ?? Could Gold's price action foreshadow Dow subsequent and coming rally ? Logically it should. The smart money is positioning now for the coming rally in Equities. Withdrawing from the "Gold Bank" to invest in dividend paying Equities where real and tangible stuffs happen
So at least for now, expect a reversal of gold and Dow chart......
