"As a technician, I feel that there are few analysts that offer value for me, but you do. Your work on Gold ratios has helped my analysis greatly." --Jordan Roy-Byrne, CMT (The Daily Gold) 4.9.10

Wednesday, July 20, 2011

America getting up off the mat?

Dow-Gold Ratio (monthly, linear scale)
There is a 'Gang of 6' in the Senate trying to put forth a plan that finds the right mix of revenue increase, tax cuts (how do they do that?) and spending cuts.  Democrats and Republicans are getting hot under the collar as things tick down to the wire. 

Yesterday, the market cheered the Go6 along with some strong earnings.  But we will have a good idea that America has solved a good bit of its problems when this ratio bottoms and climbs above the blue (EMA 35) line for a month or two.

It would be really cool to have to abandon the current investment theme (precious metals) and go forth and invest in the new America.  That is because I would prefer not to be a gold bug, and that dear reader is because it would mean my country was fixing itself for real.  As yet, despite the cheer that was expressed yesterday, the Dow-Gold ratio remains on the mat.

http://www.biiwii.blogspot.com
http://www.biiwii.com



at 7/20/2011 08:09:00 AM
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2 comments:

  1. Dow:Gold up off the mat when the meek are removed from D.C. and we get better proposals than fluff like this..

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  2. I wouldn't call it fluff SG, I'd call it sad, pathetic and oh so predictable. This is what the Go6 come up with? 'Let's jigger the way we report inflation some more and screw the old people on fixed incomes... even more than we already do.' Yeh, makes me proud to be an American.

    You know, I don't think I have ever uttered the word 'Bankster', but it is really sad watching politicians conspire for ways to fuck the public while protecting their favored constituents.

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