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Long Term Ratios
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Long Term Ratios

Long Term Ratios

by The MoleAugust 19, 2009

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.

About The Author
The Mole
Mole created Evil Speculator amidst the chaos of the financial crisis in early August of 2008. His vision for Evil Speculator is a refuge of reason, hands-on trading knowledge, and inspiration for traders of all ages and stripes. You can follow him and his nefarious schemes at the usual social media waterholes.
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