Gold & Treasuries Lean Bearish

The video below explores the current ratio of gold (GLD) to Treasuries (TLT). The ratio helps us monitor the battle between:

Inflation via GLD and deflation via TLT.

The Bulls via GLD and bears via TLT.

Like many markets, the GLD:TLT ratio is near a possible inflation point. However, the ratio was near a similar bullish inflation point in 2008 before stocks and gold took another leg down. The points below compare points on the 2008 and 2011 charts:

A1 & A2: GLD:TLT ratio makes similar twin peaks
B1 & B2: Ratio breaks inflation/bullish trend
C1 & C2: When the indicator, Williams % R, remains weak, the bear market in stocks remained intact (left of C1, right of C2). When the indicator moved back above -20 (overbought), the bear market was nearing its end.
The video expands the commentary on these two charts and also comments on Italian bond yields.

Category:

News & Politics

Tags:

• NOV
• 2011
• Update