A Complicated Scenario, Marketwise - from Bill Rafter
Forgive me for posting two items, but I believe them to be related. In the first instance we have our oldest algorithm (from 1988), nicknamed “Thermos”. This plots a moving correlation between stock and bond levels. As of Friday (2/26) it has gone bullish for stocks.
Secondly, a major Teutonic bank just announced a buy recommendation in gold. Coincidentally we notice that our measure of professional sentiment just went bearish on gold.
A week ago we had a similar signal to sell bonds. We have long noticed that whenever bonds and gold are in agreement, equities make a move in the opposite direction. Either way, long or short.
Comments
Anatoly Veltman on February 27, 2016 7:12 pm
I’ll paper-challenge. While Gold rally is way past our initial Buy signal of a couple of months back, it may still linger another couple of months! Gold chart is obviously in the midst of fourth wave correction - and fifth wave UP is still to come!
S&P, while holding the 1800’s like a champ and putting up a heck of a (temporary) fight - thus discommoding plenty of a speculative short - is still destined to our corrective cycle objective way-way-way lower. 1480 is the call (or should I say PUT, lol)
none on February 29, 2016 1:53 pm
Very good notes and comments on the market’s something not see here very often, as talking market related and such.
Django on March 1, 2016 1:18 am
Professional sentiment as in Larry Williams Professional Sentiment Index ?