adwIn respect of the gold bull Mr SP I decided to take a...

adw

In respect of the gold bull Mr SP I decided to take a contrary view for a moment to try and understand the US:UUP move that you have pointed out.

I compared US:UUP with the DJIA and noted a negative correlation. It seems that the US:UUP goes up when when the djia goes down - not that surprising I suppose.

But the spike in volume and upward movement in the US:UUP as the djia is also appreciating is interesting. Of late that relationship does not seem logical.

Interestingly, the fast stochastic is hitting overbought levels at the same time as a MACD cross over. Previously the MACD cross over happened after a period of overbought conditions.

Is the market anticipating a double top in the DJIA? If so money would be moving in anticipation of the move.

Notwithstanding, gold has continued to show strength and the US:UUP took a turn lower overnight and settled down. Perhaps a blip on the radar with no consequence.

Anyway, I still believe there is one more run left in the DJIA. It should run until march next year at which point it will head lower. Gold will have also run its course and hit its highs - perhaps a good time for a correction too.

GC