STOCK:GOLD CORRELATION

Until the stock market finishes the move down into the 7 year cycle low gold will continue its

A-wave advance.

87 thoughts on “STOCK:GOLD CORRELATION”

  1. MuffinTop

    Congratulations Gary! You lit the house on fire with that last post, haha! And some people continue to be stubborn as F* 🙂

    1. Gary Post author

      After listening to their crap for several years and denial of the manipulation in gold it just needed to be said.

      1. Utopia

        Don’t be so ridiculous. Gold is not manipulated Gary. Certainly not in the way you suggest. The cycles of rising and falling commodity prices that is very obvious has been going on through all history and this time is no different. Your manipulation thesis is merely a convenient foil to explain away the fact you don’t really understand markets. It is your crutch.

        Reminds me of people doing a Rorschach test actually. You can see anything you want in a formation of clouds or ink blots. That is a testament to your imagination but not your skill level.

        Here, take the test. Tell us how it worked out.
        http://theinkblot.com/

        2. Bob

          Mike Swanson’s website “Wall Street Window” allowed members to post comments, similar to this site. I see the same thing here that happened on Mike’s site. People posted their opinions, then attacked or insulted others whom they didn’t agree with. After a few months of this, Mike got fed up with the attacks, and closed the comments section. Let’s not make the same mistake here. Post your comments, but don’t criticize others for their opinions.

    2. marie

      I am looking at the inverse correlation between gold and the market. On 3/19/08 gold dropped $60 (after 2 month rally), but the Dow also down 290 pt.

    1. Gary Post author

      It wasn’t until 2013 that I started seeing the premarket attacks and clear violation of position limits.

      Like I said they needed to do QE3 but they didn’t want to spike inflation like they did in 2008. The solution was to take down the gold market. It was actually a damn good plan.

  3. victor

    Does everyone has such poor quality video or it just on my computer? even not possible to see a numbers …
    Thanks

  4. ChrisG

    No, you are stupid Gary! This is a bear market! Gold is going to $800. At $1240, gold is still in a bear market rally. Eh… But I thought you bears said gold is bear rally at $1140. However, you bear said if $1210, then its not bear rally? You would turn bullish. Ans: no no no , its bear rally!

    Wow, that is what a stupid bear camp will proclaim. They will say bear rally even though gold rallies to $2000 level. Lol.

    I missed $50 of this rally. But its OK, because I got in at the lows. And I have made from shorting index. But now I have wisen up. I have position some into silver. And I am not going to trade it. Will look to add on strength. And like Gary said, if this is a bull market, best is sit on hands for 2 yrs.

    1. Bill

      After your ” Ill short gold ” yesterday failed call, I would let you call a Bingo game, follow these miscreants closely folks they are your greatest tell the bull market in gold is alive and well.

  5. ChrisG

    And regarding Armstrong, his recent posts implys that he caught the lows. What bloody hell. His recent post was clearly doubting the rally. What idiot. But its OK. Because now that gold has turned, he is turning more bullish.

    Remember, you don’t have to catch the lows to participate in a bull run you know.

    1. Gary Post author

      IMO he’s the biggest fraud in the business. This nonsense with his computer is a blatant scam.

      1. Dan smith

        “Fraudulent and scam”. Wow that’s brave in the modern age of liability. Hope you can back it up.

        1. WadeS

          What’s libellous in an opinion? Exactly, nothing!

          Great calls Gary.
          And I fully agree and have suspected for years myself, that MA is nothing more than a disinformation agent. I read nothing he writes. Very dismissive of anything Martin A.

          1. Dan smith

            Dream on. Simply saying something is your opinion, isn’t a get out of jail free card. If it damages the persons reputation or business it can be seen as defamatory.

  6. Stefan

    This is a bear rally, but I made a mistake in my analysis a couple of weeks ago. I turn into Bull mode if we break 1525-1550, then the bear is put to sleep.

    Do you have an email Gary so I can post you what I mean?

    I will get back to you later, it’s in the middle of the night here in Sweden 🙂 take care

    1. Ryan

      Oh ok, Stefan. You made a mistake a couple weeks ago, but you got it all worked out. Thanks so much for your advice.

  7. RayB

    wow .. some of these comments are terrible .. if I was in charge I would not let them post … Gary is more forgiving then I would be 🙂

    1. Al

      Hence his non-humble statement 🙂 Why shouldn’t he have a rare gloating moment with the contual trolling amateur night garbage we read here on a daily basis.

  9. ChrisG

    Ray, you are taking words too seriously. Learn to take sarcasm lightheartedly. If you can’t even stand a word stupid, I think you are too uptight and too serious already.

    A wise man said before, sticks and stones will break my bones, words doesn’t

  10. ChrisG

    Huh? Ray, go read carefully!!! Lol. Did I insult Gary??? Gary knows better. Obviously there are smart people here, and some not so. Clearly, Gary is the smart one! 🙂

  12. Bill in Tokyo

    Just caught up on comments the last 2 posts.

    1 stood out to me, from Bud fox … I’ll repeat here because it’s absolutely and simply STUNNING:

    ————-

    It’s simple Gary.

    Gold is responding due to collapsing interest rates.

    http://schrts.co/aL5HBD

  13. ChrisG

    Muffin, sure I am a moron. Thank you. Let me add, I am f stupid!!! Lol

    It good to be stupid. Because ego hurts trading. I always cut fast when wrong. And because I am stupid , so I am wrong. The smart ones always lose big!

  14. ChrisG

    Gary, look at gold record huge volume last night. Some say it could be a blow off TOP. What do you think?

    I sure hope not

  15. ChrisG

    Yes Armstrong full of shit. But I still use his bullish bearish levels as guide. Frankly, I find it often useful.

  18. Chris

    Watch 1308. If gold takes out 1308, it will make yearly higher high, and this year did not take out last years low. Meaning???

    Means bears better give up. It means 99% new bull market.

  19. pepe le pew

    Nice charts, Chris! I had to blink a few times looking at that quarterly chart, but she’s gotta keep chuggin’, for the quarter is only half over!

  20. Ralph Wiederzane

    Martin Armstrong is a convicted felon, what else do you have to know? He says it was all a big setup because he’s so divine, he didn’t do nothin’! Sure, Marty.

  21. Chris

    pepe, quarterly bars is trying to show strength. It doesnt have to close above those, just taking out the previous quarterly already shows strength. Of course, if it can close above, thats even better.

  22. Galen

    It is amusing to me to read all the vitriol tossed at Gary lately. Sounds like some are losing money here. All I will say is trading like I always have and watching Gary’s posts like a hawk is making me a lot of money. Keep up the great work Gary.

  23. Gary Post author

    Here we go. The PPT will try to paint the weekly charts with a reversal candlestick today. If they don’t succeed next week will be ugly.

  24. Chris

    Yes Gary, i noticed it yesterday. But thats only applicable to Ndx futures. None of the cash index is possible. Because they are too far out.

  26. Chris

    Bill, dont be stupid. I said short gold last night. Yes, but i cut fast. And did you track history. I was long. I made $100 over dollars on gold. And my short was only 2 mini gold futures. And i lost $3 on it. I am a trader, and i am flexible. WHo is always right? You may say $100 out of $200 gold move is not much. But I am not warren buffet. I cannot over expose. My short index made tons as well.

    And when $hui made a false breakdown at the low, I even posted that with false moves comes fast moves. Even before Gary posted his video.

    And best, I was critical of all gold bulls when it was dropping. Just ask Mike. I quarreled big time with him in Oct/ Nov i think. But I turned very bullish on Dec.

    2. Bill

      Of course you did, you make a call then you immediately cover it, man I wish I owned a brokerage I like traders like you.

  27. Enoch

    question for Gary

    btw I know you keep saying how if stocks fall then gold will rise and vice versa, if this is the correlations, what happens once stocks/equities completed its 7 year cycle low? will gold’s run be over?

      1. Enoch

        again thanks for all the insight and analysis, they have been extremely helpful.

        once stocks bottom and a new cycle begins do you believe it will be another 7 years before the next cycle low? or perhaps are you in the same camp as some suggesting the next few years will be an extreme bubble paving the way for an ultimate collapse of the financial system that will reform the monetary system.

        I was looking at the gold chart in the 70-80s and notice the similarities between then and now. the gold that went from 1900 to 1000 is similar to the 70s drop from 200s to 100s, then once gold broke the multi-year correctional down trend line it kept moving higher for 3-4 straight years and it was 8-fold. somehow I feel the same is happening in a greater scale. perhaps our low in gold will put in 8 fold to somewhere 8k gold in the next few years that also means silver could fetch as high as 500 dollars at the same 1-16 ratio back then

  28. bhowe

    Gary, I’m curious. You expect Gold to reach $1550 ish in this ICL. Are you saying you don’t expect a pullback before goes to $1550? Confused on your report this morning.

    1. Gary Post author

      No there will be a move down into a daily cycle low in the not too distant future. It will convince everyone that gold has topped. But gold will not have topped and you must buy that dip.

  29. Chris

    I think I have made between $100-$150, due to position sizing on gold. Now i have decided to buy half size silver and park in there , not going to trade as per Gary’s advice. Oh, and did you guys short index. I think you guys should. Anyway my shorting costs is much higher. And I am 75% short already. If spx breaks 1800, hee….. power up.

  30. Chris

    Bill u dont know how to trade. That’s a skill u lack. Many dont. Better dont. I trade and ride sometimes. I made 10x my capital already using my system. I have max profits for so many days. I only lose 1 day out of 20 days. And the loss is only a fraction of my gains.

  31. victor

    Guys, is it so difficult to treat everyone with respect? squiling like a teenagers full of hormones…

    1. Gary Post author

      Testosterone: The root of all evil in the world … but unfortunately necessary for the continuation of the species. 🙂

      1. Mark

        It is not necessary anymore,there are many ways to procreate nowadays.
        Testosterone make men aggressive,stupid and primitive.
        It makes humans looks like monkeys.

      2. Jorgy

        I know it feels good to say “I told you so” but didn’t you see the the big SOS #’s in GDX the last few days? The IC in gold may have topped yesterday? Seems to me that SM is booking gains in gold, silver and miners and using the cash to short bonds (steepening yield curve) and long stocks for a bounce out of an early ICL and/or the rip out of their 7-Yr CL. It’s been a hell of a good run since mid-to-late January… But I’m l@@king for counter-trend moves to bank coin on too! ?

        1. Gary Post author

          The only spot I would be willing to take a counter trend trade would be if gold tags the 200 week moving average. Anything before that is risky.

          Baby bulls are dangerous and unpredictable. The rules that govern other markets don’t apply to baby bulls.

  33. Chris

    Thank you most for thinking ChrisG , or Chris is a liar. Cant trade, becos no one could trade that well. He is a schizo, stupid retard. In the chinese year of monkey, he is the greatest foolish monkey. He has no skills, just seeking fake glory here. Doubters are the best. They never believe it is possible. I recall the rumour on the Japanese super day trader. Many people said he doesnt exist. I am sure he likes it. If everyone could replicate him, he loses his edge.

  34. Alexandru Popovici

    Victor, I agree with you on the attitude problem here!

    Observations:
    1) holding to my gold full-position holding as USX just produced a swing low and gold has entered its daily cycle decline;

    2) It is interesting to notice the budding relative strength of transports against all other offensive segments and the broad market indexes.

    1. RayB

      it would suck to be banned on here … I’m going to send Gary a dozen roses on Valentines Day just to cover my bases LOL

  39. Gary Post author

    There is little doubt the yen has completed a multi-year bottom and I’m pretty sure the euro is doing the same with the double bottom. If it bounces off the 200 day moving average at the next DCL we should get confirmation.

    Armstrong is starting to look like the fraud he is with his calls for sub $1000 gold and soaring dollar.

    Like I said: Socrates is a scam, he’s nothing more than a trend follower, and one that consistently misses the big turing points.

    At the bottom in 2001 he predicted gold was going under $200.

    At the top in 2011 he predicted gold would reach $5000 by 2015.

    And at the recent bottom he was calling for sub $1000, even as low as $680.

  40. Jackie chan

    Early next week chinese traders will return to market. Will they dump stock and start load gold or vise versa? that is the question.

  42. JRT

    Gary,

    What is your take on the oil rally and S&P? Oil surging up today but S&P seems to be turning up its nose at this oil rally. Gold test 1232 3X now, seems to be holding so far

  43. Anthonyo

    STOCKS: PPT back in action to re-conquer Dow 16,000 … They will not give up, thinking SPX will go to 1600 is a pipe dream right now IMO. Unless, something big happens and PPT gets distracted or is unable to intervene timely for some reason.

  44. Herman

    gentlemen, this gold exuberance is all going to end in tears. Everybody and their mother are positive on gold now (as of yesterday), if that is not a warning signal, what is? Crowds do not pick bottoms…

      1. Herman

        well, to be honest, that could be a sign of a bottom, because governments have the ‘gift’ to sell their gold at bottom prices (see UK for example,, two decades ago or so).

        but it was just 1.7 tonnes or so, that is a pathetic amount for a country..

  45. Herman

    when the stocks and oil starts rallying, we will see how many people will jump in again. Out of fear to miss someting, as they ar now afraid about missing out on gold.

    1. Richard

      Herman,
      Gold has a sustainable base and it is testing the upside. It may or may not fail upside resistance.
      Stocks have fallen out of a distribution top.
      Oil has undergone severe technical damage and hasn’t even began to base out, yet alone find a solid bottom.
      Being positive on gold versus positioned in gold are two different things and the pricing does not indicate a severe position has been built up.

        1. Richard

          Herman,
          OK. Sounds good. I agree. The real bearish case would be to run up a little more and then back down through the 30 area. Tough trade in here on stocks, today could be the calm before the storm. China opens Monday while US is closed and then 4 days till op-ex.

  47. Paul

    Hi Gary
    If you think we need a pullback before continuing higher..are you looking at the 1180 area or is that all history now in your opinion ??

  48. Brady

    Gary, after the gold intermediate cycle tops around the 1550 level, do you think we will come down to be in a better buying position then to further stock up on miners, or should we try to get all in now just in case it doesn’t drop to these levels again?

      1. Anthonyo

        For good is a long time. Huge, multi-party war may be coming to the middle east thanks to Al-Obama’s deal with his favorite Islamists to get their nuke plus $150B pocket money. Then you are talking $100+ again in a jiffy if this eventuality occurs.

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