Tuesday, January 26, 2010

Stocks versus Gold and Silver

We'll use DIA, GLD, and SLV as our proxies.

first DIA:GLD:

Something of a triangle at risk of breaking lower in the short-term, but as long as that doesn't get too severe it's tempting to view the larger pattern as a potential inverted thingie.

The next chart has the same settings as the one above but has DIA divided by SLV:

DIA:SLV seems to have built a better base than DIA:GLD, though it's a rather wide base and it's quite possible for the ratio to fall back into the lower portion of the base again.