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Some wisdom from an experienced trader
“Before we look at some more precious metals stocks there is a phrase I use every now and then which goes like this, “the only rule in the markets is that there are no rules.” If the markets behaved exactly how we expect them to then there would be no stock markets because everyone you be right 100% of the time. The markets are the master manipulator of our emotions and it works because we are all human beings. When you add money into the equation then our emotions rise to a level which makes it hard to see the forest for the trees sometimes. Add a couple of loosing trades to the mix and we become even more emotional to the point we can’t even pull the trigger on a stock that looks like a perfect buy. We wait for the perfect setup when everything is properly aligned from the moon, stars, all the indicators, the chart patterns you name it, if everything isn’t perfect we will fail to pull the trigger when the opportunity strikes.
Below is a combo chart which has the SPX on top and Gold on the bottom. One of the mantra’s the gold investors like to use is that the stock markets have to crash before gold can rally which can be far from the truth. There are times when that statement is correct, but there are other times when the stock markets and gold can rally together”
https://rambus1.com/2019/02/06/wednesday-report-234/
To the point
Completely sgree. There may be s more inverse correlation on the hourly or daily basis but not so much over the long term.
Agreed, scofield. Casually seeing gold up on market down days seems to be a more apparent correlation than over the long term.
Thanks for sharing Fully!
Gold and the stock markets can move together, up and down. And the SPX:Gold ratio can be used to position oneself on the asset that is rising faster or falling slower!