Saturday, February 20, 2010
Waiting For the Dam to Break
One chart, one message. "Stocks bad, Gold good" is coming soon to a theater near you. The Dow to Gold ratio over the past year is forming a head and shoulders top that is getting set to break to the down side:
The correction in this ratio, which is in a secular bear market, has been almost a year in the making. I think we topped out in August but we haven't broken down yet.