NYC Independent Traders and Investors Message Board › Major Market Moment
|A former member||
Gold and Stock Market are at critical junctures.
Gold is now in the 3.5:1 MA containment ratio territory. It is very, very rare that a market gets beyond this price level without at least a VERY significant price correction Last time this happened was in 2008 and gold lopped off 1/3 of its value. Containment ratio now at this same level again. Advice: Sell/short now and/or put sell/short stops at 1500. Expect major violation of this level within 6 months.
Stock market may test the CLMA basis the Mar 2009 low soon. Right now this level is about 1200 S&P but will creep up quickly. It has held this CLMA twice since the 2009 low. If it fails to hold this time the next significant support down is the CLMA basis the 1982, yes the year 1982, low. It held this same CLMA in 2009. Right now this is at about 850 S&P. Note that this ugly downside scenario might not play out but I would be very worried about continuing to hold stock market asset in general if there is failure at the 2009 basis CLMA level. This failure would produce a potential massive head and shoulders top and a failure at the 1982 basis CLMA would confirm the formation.
Stick this in a folder named 2013 and see if this played out next year. I will likely take these signals if they occur to play both markets to short side in a big way.