Tuesday, January 1, 2008

$DFI:$GOLD -- Update

on 12/7/07 I introduced the DFI/Gold ratio. briefly, I'd like to point out that the point and figure chart looks even more bearish now, having moved down to the 206.86 box. and on a linear chart a 'golden cross' to the downside looks imminent, with the 50 and 200 day moving averages both at 2.171. historically this ratio has seen significant follow through on golden cross reversals. about the only positive I can see for the DFI side of the equation is the potential chart support around the 2 to 2.05 level. but as this gives way we can eagerly anticipate the coming next phase of 'The Dollar Wars'.

oh, and happy new year from Ecuador, where at midnight every family burned a stack of 'los anos viejos' (bloated effigies of politicians). great tradition.