RE: US Stocks - Watchlist and Discussion
(2019-01-01, 11:20 AM)isatrader Wrote: The $GOLD:$SPX ratio is a good guide of when to consider Gold over general US stocks, as it shows the relative performance versus the 30 month MA. When the line is above the 30 month MA and the 30 month MA is rising, then Gold is definitely preferable, but being a long term MA, it takes a while to turn up, so when it's still declining but the price ratio moves above it (like it has currently), there's a chance that it's at the start of move in gold, so it is a time to be researching the best in the sector and possibly doing test trades if anything is suitable and breaking out into Stage 2 with strong relative volume, and no near term resistance etc. The same rules apply as always with the method though, so don't be tempted into stocks that are still well below resistance in deep Stage 4 declines. Focus only the best quality to see if anything is viable.
Here are my breadth charts for 2 years (with my breadth score) and 6 years without:
From my charts the breadth is still not posative (though there have bene small blips) but has improved significantly. THe comparison with early 2016 I believe is significant, as I found that stage analysis was working well for me at that point. The volume on GLD was notable.