Wednesday, May 13, 2009

Dow:gold ratio turning down again

I'm watching the Dow:gold ratio right now. It's in the process of putting in a 1-2-3 reversal. If this ratio closes back below the initial reaction low it would be a pretty good sign that the longer term trend of stocks down and gold up has resumed.

It would also be a strong signal that gold has indeed entered the next C wave advance. The last two C waves lasted over a year each. I suspect this will be the case this time also.