Charting Stocks

When we wrote “Inflating a Bull Market,” we mentioned the inverse relationship between the US dollar and stock prices. In March, the US dollar peaked from overbought levels and began to decline. At the same time stocks bottomed from oversold levels and began to move up. The reason is simple – Stocks are priced [...]

This map is courtesy of Mint.com and shows the top producing countries of each resource, or the proved reserves in the case of oil and natural gas. Click on the image to see  full size.

Much has been made over the recent stock market rally. The advance from the bottom has, indeed, been historic and has caught many of us by surprise. Though the market was extremely oversold and due for an upward correction, we continue to be  amazed at its strength and longevity.  A closer examination, however, reveals that [...]

Last week we mentioned that the spring rally had reached completion.The major averages were coming up against major resistance at a time when an oversold rally was losing momentum. Admittedly, our call was a couple of days early but today looks like a key reversal day. If the selling continues into tomorrows close, last week [...]

In our 2009 forecast, we mentioned that the Dow Jones/Gold ratio would likely hit 5 this year. A milestone was reached today as the Dow Jones index made a fresh 20 year low in terms of gold. The ratio has fallen to 7, down from the 1999 peak of 42.5 ounces.
Seven 1 oz. gold eagle [...]

Gold futures jumped as high as $998.50 an ounce.  as investors spooked by the sell-off in U.S. stock futures and international stock markets sought safety in the precious metal. The April delivery contract rallied to an intraday high of $998.50 an ounce, which is just a few dollars below the psychological resistance point  of $1,000 [...]

Gold’s recent price action suggests a breakout may be near.

After consolidating for almost a year, it appears that gold may be in the early stages of another advancement. The chart below illustrates the breach of the 1 year downtrend (Red line). The RSI (bottom section) suggests that the move may have more to go as [...]

The 2008 US dollar rally is losing steam and may be coming to an end. I know that the run up in the currency left many in the financial world scratching their heads. How can the currency of a collapsing economy strengthen? Why, when trillions of new dollars are being created out of thin air, [...]

I noticed a couple of comments (OK just one) regarding inflation/deflation and how to know which is dominant. To get the answer I like to use a simple inflation/deflation indicator that I first learned about by reading John Murphy’s Intermarket Analysis book. I highly recommend reading this book to anyone who’s interested in charting stocks [...]