Long Term Ratios
Long Term Ratios
2:10pm EDT: This is a chart I didn’t have the time to accomodate over the weekend:
We are looking at the NDX:DJX ratio – as you can see the swings in the ratio seem to expand as investors are frantic to pile in and then out of tech stocks – rinse, lather, repeat. I find this a very interesting perspective of the general sentiment out there – the bubble fever continues unabated. As a side note – it might be worthwhile to also bulk up on some long term Cubes puts as I expect the NDX/COMPQ to outperform the SPX on the short side – at least if recent history is any indication of what can be expected.
The Gold:Silver ratio has shot up markedly in the past few days, which is very bearish for both metals.
I’m a bit conflicted about the current push up – could be an a-b-c – or it’s only an A up. I think I’ll wait for the lower 14s to try my luck at not missing the entire downside move here.
