A reader wrote me and mentioned that, years ago, Peter Schiff had suggested it would be more important to watch the ratio of the stock market priced in gold rather than the stock market priced in dollars. In ProphetCharts, he tried to see what the SPY/GLD ratio would look like, and it yielded some interesting results. I’ve done the same thing, and I’ve got to say, this is a graph that gets my attention. It suggests more upside, but the long-awaited reversal could be a very powerful one. (In an ideal situation, bad for stocks and good for gold).
Slope of Hope Blog Posts
Slope initially began as a blog, so this is where most of the website’s content resides. Here we have tens of thousands of posts dating back over a decade. These are listed in reverse chronological order. Click on any category icon below to see posts tagged with that particular subject, or click on a word in the category cloud on the right side of the screen for more specific choices.
On this day of lifetime highs across the board, I was musing about what the market might look like over, say, the next twenty months or so (that is, up through the end of next year, which will also be following what is bound to be a really interesting Presidential election). The possibilities, of course, are pretty much infinite, but allow me to offer up three broad scenarios.
Here’s today’s swing-trading watch-list:
Long General Electric (GE)
Up until November of last year, Keurig Green Mountain was the Netflix of coffee companies. Their stock did nothing but go up, rising something like 60-fold based on mo-mo madness.
I have been enthusiastically touting this as a short candidate, and it is unwinding quite nicely. I think it’s got plenty to go, particularly given its poor performance in this otherwise lifetime-highs-everywhere market we are in.
Obviously SPX has delivered a lot of chop this year and remarkably, of the nineteen weekly candles so far, eleven have tested the weekly middle band with two near misses. Of the last ten weekly candles, six have fully tested the weekly middle band with two near misses. Will we see the same thing again this week? If so the weekly middle band is currently at 2077. SPX weekly chart: