Here's the Dow-Gold ratio showing weekly bullish divergence. Am I bullish stocks? No. Am I bullish gold? Yes. But the chart is the chart and while bullish divergence isn't everything, if we are going to consider it as a bullish setup for our favored trades, we must also look into its gaping maw when it potentially tells us something we don't like.
Tuesday, July 22, 2008
While conjuring up evil spirits...
Here's the Dow-Gold ratio showing weekly bullish divergence. Am I bullish stocks? No. Am I bullish gold? Yes. But the chart is the chart and while bullish divergence isn't everything, if we are going to consider it as a bullish setup for our favored trades, we must also look into its gaping maw when it potentially tells us something we don't like.
