Wednesday, April 25, 2012

Apparent proof that Gold will lead the dumb money sentiment

Earlier I suggested gold would be indicative of dumb money's sentiment r: the F_O_M_C's stance with regard to easing. This appears to be proof of that.

 SPY in green, GLD in white. Pre-announcement there is an inverse relationship (red box)

Since the policy statement and as Bernie speaks, the correlation has flipped and gold is tracking the SPX.

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