Bernanke fooled many people. 100% rally was a fake. We are back to March 2009 if SPX is measured in Gold units
SPX lost 20% over the last 11 trading days. this is a freaking crash! SPX:GLD looks just abismal, but even plain SPX is back to end of 2009 level.
You should se the chart of SPX priced in new potatoes. It's catastrophic. You make me yearn for Bearice.
Sarcasm aside, you don't agree that pricing the SP relative to a "hard currency" does make a bit more sense in light of all the Fed shenanigans?
Not really. I cannot pay for bread in gold. They look at me funny when I try. The dollar is not exactly doing well here so I fail to see the point.
IMO there is merit in that. But I don't think gold is a suitable "hard currency" to do it against, because it's value is 99% speculation. Oil would be better comparison, IMO.
even though the potato trader expressed some objection, i maintain the importance of the chart i presented. I understand that SPX can be expressed in various coordinates (potato, oil, etc). But Gold is not a potato and is, I believe, very high on the list of the stuff to meaningfully normalize SPX to. If somebody has another normalized chart that show some specific/interesting points feel free to do so. what's important is that SPX:GLD made the low in March 2009, which happened to be the major turning point on SPX chart. and today is the day that low is breached. Therefore, today is a special day and it demands special attention. I don't know what it all means: is this the turning point for SPX:GLD? does the breach mean the bottom is about to really fall out? something else?
It so happens that tomorrow is Fed day... I am wondering if they are reading my chart, or at least watching the news at all...