Gold/SPX Ratio; Gold Bugs Avert Eyes

The hard crack in the precious metals came last week

Of course it did! Gold, guns and ammo, right? Man those Unabomber shacks!

unabomber shack

Domestic terror struck the land and as if by magic, gold got creamed. You note the sarcasm and that is because gold was obviously ganged up upon by some ‘they’ out there. All markets are manip’d and gold probably more than most. I don’t argue that. What I argue is to not invest as if it’s a battle of us (the good guys) against them (the evil and nefarious forces of the elite banking system, decedents of Satan himself).

So of course gold got cracked when America was ending last week. Taking out the noise, after a logical recovery after filling the COVID-19 fear gap…

[Never missing an excuse to insert this guy, as he won’t be around forever]

tyx

…the Gold/SPX ratio failed again and at this new low it resides as the over-loved stock market parties on. Don’t personalize. Manage it, which also means manage emotions.

The weekly chart shows the post-March devastation to one of the gold sector’s primary underpinnings, the metal’s ratio to the risk ‘on’ and cyclical stock market. As of now it is still at a higher low to Q4 2019. But the picture is obviously not good at this time, whether ‘they’ painted the picture or not.

It’s an indicator for both counter-cyclical gold stocks and going the other way, the happy cyclical stuff. When this indicator bottoms the party will be drinking warm punch with soggy cigarette butts in it. Until then… Wayne? Garth?

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