Jump to content

SPX-to-Gold and Dow-to-Gold ratios

Recommended Posts

Some have mentioned these ratios to me, and I want to start following them more closely.


Here are Long term charts:

John Roque's Dow-to-Gold ratio: ... 2005 Forecast: chart // Current Weekly

djia_gold_relative_ratio.PNG : current


... from the GoldMoney website.



...and DrBubb's posting contained this current chart :



We are ON RESISTANCE just below 21 ounces


And here's the ratio for SPX-to-Gold : chart

Looks like there is resistance right around 2.36/2.40.


Using current figures...


SPX : 1,358

Gold: $571.00

Ratio: 1358 / 571 = 2.378 Gold ounces to Buy the SPX


and with Dow at 11,925:

Ratio: 11,925/ 571 = 20.88 ounces ... updated chart


# # # #


A.Cutten's charts : http://www.geocities.com/arthurcutten/jesse.html

Link to comment
Share on other sites

woke up to find...

Dow up big, but Gold rose more, so the Ratio was lower than I left it:


SPX Ratio: 1363/ 574.9 = 2.371 (was 2.378) .... Gold ounces to Buy the SPX


Dow Ratio: 11,948/ 574.9 = 20.78 (was 20.88)


So if I bought my puts a bit too soon, it's okay.

I am much more long gold, and that side is winning

Link to comment
Share on other sites

Nice move in Gold on Friday : up over $10 ! : as the Dow/Gold ratio falls


GLD : $ 58.57 : +1.08 / Volume: 3,078,900 / Percent Change: +1.88%

GDX : $ 35.79 : +1.09 / Volume: 977,200 / / Percent Change: +3.14%

Dow : 11,960.51 +12.81 / Volume: 295,095,640 / Percent Change: +0.11%


Ratios:: Dow/Gold : 20.42 // GDX/GLD : 61.11%


This is what can happen off a turnpoint, as identified in the chart in the Header


# # #

News Report ... Oct 13, 2006


Stocks rebound on rise in commodity prices


SAN FRANCISCO (MarketWatch) -- Toronto stocks rose Friday on a rebound in commodities prices as the sudden onset of winter in the northeastern United States sparked an increase in energy prices.

The S&P/TSX Composite Index (CA:SPTSX: news, chart, profile) rose 189 points, or 1.6%, to 11908.57.

A recovery in crude prices helped propel the TSX's energy index 3.3% higher.

EnCana (CA:ECA: news, chart, profile) (ECA : encana corp com. :$ 45.90+1.42+3.19%) gained 3.4% and Suncor Energy (CA:SU: news, chart, profile) (SU : suncor energy inc com : $72.50+2.68+3.84%) added 3.9%. Canadian Natural Resources (CA:CNQ: news, chart, profile) (CNQ : canadian nat res ltd com : 46.72+1.45+3.20%) gained 4%.


Gold followed crude oil higher, spurring the TSX's materials index to a 2.5% gain. The gold subindex rose 3.8%.


Barrick Gold (CA:ABX: news, chart, profile) (ABX : Barrick Gold : $29.79+0.67+2.30%) closed up 2.7% and Goldcorp (CA:G: news, chart, profile) (GG : goldcorp inc new com: $22.73+1.02+4.70%) picked up 4.5%. Glamis Gold (CA:GLG: news, chart, profile) jumped 4.9%.

Nickel miner Inco (CA:N: news, chart, profile) (N : INCO Limited: $75.21-0.10-0.13%) edged up 0.1% and aluminum maker Alcan (CA:AL: news, chart, profile) (AL : Alcan Inc: $41.18+0.53) rose 1.6%. Mining company Teck Cominco (CA:TCKB: news, chart, profile) (TCK :$ 68.54+2.39+3.61%) rose 4.4%.


Combined, the energy and materials sector represent about half of the TSX composite index.



= =


(put this thread in the header??)

Link to comment
Share on other sites

I've read and listened to so many items lately - great. I like this comparison, and timing looks like everything.


I wonder if the present situation of DOW/FTSE etc up, and lowish energy & gold etc will hold through to US elections in early Nov, or should the VIs have planned a mild October election date?


Or, as US & UK seem to be taking no meaningful move to tightening the money supply through IRs, could this loose money inflate these stock market indices right through to the New Year, now that housing doesn't look so good? I would be very scared to have large amounts invested here as it looks a long way down.


Started and then scrubbed several comments last few days - this winter just looks like a very entertaining time, and felt I had to register an interest.


(BTW, anyone care to start a thread explaining to me how money is 'destroyed', rather than individuals racking up debt & negative equity, and banks writing off bad debt against profits. Ain't got to grips with that yet.)

Link to comment
Share on other sites

Henry W. sees a move up in gold shares from here:




more: http://www.elliottfractals.com/marketview_interview.html


# # #


Cyclical expect fred starkey is very keen on silver.


He sees a low arounf nov.4th-6th, and then a takeover.

His target is $18 by the first quarter

Link to comment
Share on other sites



Here's another interesting ratio: SPX / TLT (the etf for Ten Year Bonds) ... update




Also at/near an extreme,


= = =


Here's how SPX looksin ratio to Gold



Link to comment
Share on other sites


This topic is now archived and is closed to further replies.

  • Create New...