I must say I find it very interesting that a lot of people quote oil/ gold , usdi/gold , gold / silver ect ect ect. There a numerous ratios ,subjective correlations, inferences, graphical and statistical interpolation and extrapolation. Does any of it make sense?
Well! All I can say is there have been data that have seemed to relationships over certain time periods, many are breaking down. Economics as a whole is flawed, and the variables that effect different sides of above ratios can and are at times mutually exclusive. Extensive manipulation of commodity prices is here to stay, the rise of the algobots and deep pockets of old money in reality gives the average trader no chance. Over longer time periods you would hope that the basic market fundamentals will play out as a moderating factor ie supply and demand.
The sheer volume of trades made by algobots across every market of stock and commodity alike can paint any scenario they like, only in extremes of supply and demand can the human trader gain any very short term control. Personally I think a lot of TA is for retrospective analysis and nearly defunct. The rich get richer and the poor get poorer. 2008 was when the rich sucked all of the money out of the world, so the government printed a heap of money so they can do it again. Happy Sunday all.
