aibek burabayev Archives - Page 54 of 59

Gold Update: Major Reversal

Posted on August 24, 2015August 25, 2015 by Aibek Burabayev

Gold Has Already Started Its Hunt For Stocks

Chart 1: Gold/S&P500 Ratio Daily
XAUUSDO/SP500 Ratio Chart
Chart courtesy of TradingView.com

Two weeks ago in my special post about the Gold and stocks correlation, I was talking about the coming end of the Gold/S&P500 ratio collapse and I was really surprised by this immediate outcome shown in the chart above. My congratulations to those who luckily bought Gold and shorted the stock index, now you can enjoy a decent 17% gain on the trade and this just may be the beginning. Continue reading "Gold Update: Major Reversal" →

Copper Points At Weaker Economy?

Posted on August 17, 2015August 17, 2015 by Aibek Burabayev

Reddish Metal Disagrees With GDP Readings

World GDP abd Copper Price Growth Dynamics
Chart: Aibek Burabayev; Data: World Bank, CME group

Copper is a core element of our everyday life and it will only grow to be even more important in our digital life as we strive for comfort. The diagram above shows it without saying a word.

The 10-year dynamics of the GDP and Copper growth had the same trajectory, at least until 2014 when the ratios diverged. In 2005-2007 the metal had fallen ahead of the GDP with a steeper curve in 2007 and then both indicators met in the collapse of 2008-2009. And then, amazingly, the ratios proceeded to keep together on the graph showing ideal matching from the bottom to the top in 2010. Continue reading "Copper Points At Weaker Economy?" →

Market Extremes: Gold Is Going To Take On Stocks And More In Europe

Posted on August 12, 2015August 11, 2015 by Aibek Burabayev

This time I want to share with you the technicals of the Gold/Stock index ratios for the United States and Europe.

Chart 1. Gold In Usd/S&P 500 Index Ratio: Landed or Not?

XAUUSDO/CME_SP500
Chart courtesy of TradingView.com

As both Gold and stocks are hitting new multi-year extremes, I wanted to compare them in the form of a ratio to better understand where we are now on the chart.

This year the S&P 500 index pushed Gold down to a decade low just like the US dollar did. The chart looks similar to the Gold/$ chart, but the index has surpassed the currency. The Gold/S&P500 ratio corrected for a huge 78.6% setback while the Gold/$ ratio only corrected for a 50% setback, which means that stocks outperformed the cash. Continue reading "Market Extremes: Gold Is Going To Take On Stocks And More In Europe" →

Palladium's Weakness Is Corrective And Temporary

Posted on July 29, 2015 by Aibek Burabayev

Today I prepared an absolutely different look at the Palladium technicals.

Monthly Chart: Palladium Has Halted On The Way Up To $1200

NYMEX:EOD:PAL!
Chart courtesy of TradingView.com

Palladium has been a top performing metal among the precious metals for the past decade. It's the only precious metal to make a new high in 2014 while the others peaked in 2011 and the only metal to build record ETF inventories.

As seen on the above monthly chart, the metal price has shown quite simple zigzags with vertical soaring during the period between 1977 and 2001. Palladium had flown sky-high to $1090 level and then it had fallen in 2002 down to the $145 mark, giving back almost all of its gains. Indeed, it was a bubble burst. Continue reading "Palladium's Weakness Is Corrective And Temporary" →

Platinum Could Hit The Floor

Posted on July 24, 2015July 24, 2015 by Aibek Burabayev

The Global Outlook: Platinum Is In Serious Trouble

NYMEX_EOD:PL1
Chart courtesy of TradingView.com

Indeed, this metal is very tricky. One moment it can be flying high, then it can take a swing hitting the bottom and again and again. This time around, Platinum is on its way down, falling like a hot knife through butter. Without any problems, it has lost $500, down from $1500.

The minor swing was detected at the $1200-$1300 level on the monthly charts and then the metal slid even faster. The price has easily broken below both the 2006 low at $1059.60 and the 1980 high at $1045. The psychologically important round number level at $1000 has fallen even quicker. Continue reading "Platinum Could Hit The Floor" →

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