SP500 / Gold
The three graphs of this analysis approach three different points :
I. Trends conflicting
long term.
The SP500 and gold had for 20 years
opposite fates. The SP500 knews the bigger bull market of his history,
and the gold the more terrible bears market. But, from the top of the
bubble internet of the 2000 year, the long term trend was reversed on
the gold and the SP500. The SP500 began a bear market on long term and
gold an increase long term.
II. Objectives
in AT
The SP500 built, during the 1990's
bubble, an enormous head - shoulders, this one has a minimum objective
in the zone of the 400 in 450 points. After an important fall, the SP500
returns to test the line of neck as it is usual in this type of situation.
On the other hand, the gold ounce has just crossed a very old resistance
in the 400 $'s zone which gives it a minimum objective in the sector of 550$.
The most surprising is this symmetry between these two graphs.
III. Strange symmetrie
in the exuberance of the SP500 and the "Mega" bears market
of the gold.
The SP500 has a respite due to different
Keynesian craftiness which allows it to mean testing his line of neck.
Interesting because precisely it's the politic of reflation by increase
of the money supply which makes down the dollar and up gold.
But take care, when too many banknotes are made to boost the economy, the
first "signal of the arrival of problems" it I' obviously the increase
of the gold followed actually by a disaster.
So the parallel increase, of SP500 and gold, explain itself very well but
It risks to not last for a long time.
Just a citation (but I don't remember who says it): "Inflation it's
like the toothpaste, it is easy to go out it of the tube but very difficult
to put back it inside"
Dr Thomas Chaize
