encik wan - Trading Developer on Global Investment and Technical Analysis

Just a day after announcement of US Fed 600-billion rescue plan, global investors applaud. However the gain from stock markets may not allow you to buy much. Review charts below

$SPX

$SPX/$GOLD ratio

EZU

EZU/$GOLD ratio

EEM

EEM/$GOLD ratio

Of the 3 major markets, emerging market has the biggest REAL gain. Nothing new, another confirmation of coming age of emerging market!

God (Gold) helps our children ! Sky-high price for a lot of stuff but not our time spent on jobs

April 1 2011 - Stock markets are still in a range after dividing indices by gold price.

Last month we suspected $SPX was ready to go down in a major correction. It did not initially, but the upturn is proved to unsustainable. This time, more and more option traders are moving to favor puts. See charts below. Two of the past bull traps (September 08 and April 10) are coincided with the turn of MACD of $CPC/$SPX ratio.

$SPX

$CPC/$SPX ratio

In the last decade, top for US Dollar Index is 120. However in the last few years, US Dollar Index fails to break 90 in 2005, 2009 and 2010. See US Dollar Index chart below.