Go long S&P 500 when Gold/Oil is overbought

An overbought weekly reading in the Gold/Oil Ratio translates into a reliable ‘Buy’ signal for the S&P 500 Index.

But I’ll use a few more other studies to refine the timing of each entry.

Keep in mind that this signal doesn’t assist in the extrapolation of confirming the length of an advance nor the continuation of an exiting bullish trend. 

This ratio is now approaching such an overbought reading for the 11th time over the past 25 years.

This is an extract from my upcoming ‘Book of Correlations’……

December 15, 2022

by Rob Zdravevski


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