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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: Real Man who wrote (85406)	2/13/2009 8:42:48 AM
From: Terry Whitman	Read Replies (1) \| Respond to of 94695

>then the ratio would have to get to 60 to be at the kind of extreme it was this Summer.< Not 60 really. If U stand on your head too long, all the blood will rush to your brain and make you trade badly. -g- The GOR (Gold/Oil Ratio) was at 6.2 this summer. At which time, you may recall, I was suggesting oil was looking exactly like the NDX at it's blow off top in 2000- and gold stocks were looking cheap.. The GOR low point, 6.2, was 1.75 SD from the LT avg. of 15.2. So going the other way, the equivalent amt. is 15.2 + (1.75)(5.1) = 24.1 So a GOR of 26 is in fact more extreme than the 6.2 low.. Not that it can't go higher, but I will be playing the odds. Can't say that gold looks that bearish- but weekly oil looks pretty bullish here, IMO.