Out of my position in REN at $17.20 for a gain of $504 after commissions - I had originally only had 350 shares short, but doubled down twice for a final of 1400 shares at $17.56.
Could anyone explain the correlation between gold and the S&P 500? I offer this crude comparison. Is there a piece of the puzzle that I am missing?
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It like this.. the simple answer is more likely than not to be correct. You look at that chart and what do you see... it is not a big secret, its there to be seen.
The investing world is made up of asset classes right? To be simple we have Commodities, Stocks, Bonds and Currencies. So most people need to sell something in order to buy something else (reallocate capital), be it bonds, stocks .. ect... so what you are seeing is people selling the spx and buying gold or vice versa.. gold is perceived to be a safe store of value in times of trouble. I watch the correlation between Dollar, TBills(TLT) and stocks(Thanks JP).
The fed speaks tomorrow at 10am as much as i want to go all in short at the moment I know better.. the theme of this market has been don't fight the fed! Let the doves fly DOW 20k..the great thing about trading is you only need to react and then get on the bus.
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