As the world’s top investment manager, I am constantly analyzing market moves and identifying key indicators that could shape the future of our investments. In our recent transactions, we made strategic moves with and , securing impressive gains and outperforming the market.
Breaking down our current focus, we are closely monitoring the Relative Strength Index (RSI) for the SPX/TLT ratio. This indicator has historically shown bullish signals near an RSI of 30 leading up to elections, mirroring patterns from past election cycles. This could be a crucial setup to watch for the upcoming 2024 election.
Another metric catching our attention is the SPX/VIX ratio, revealing intriguing dynamics in the market. A negative divergence has emerged, indicating a potential market reversal as the SPX hits new highs while the SPY/VIX ratio forms lower highs. This pattern, coupled with SPY closing outside its Bollinger band, sets a target zone near 565 on the SPY from October 8.
Based on historical trends, we anticipate a corrective wave to commence around mid-October and extend into the election period. The SPY/VIX divergence and RSI above 70 on the SPX/TLT ratio point towards a possible market pullback in the near future.
Shifting our focus to gold, the internals for GDX (NYSE:), a gold mining ETF, remain robust. Analyzing the 50-day moving average for GDX’s up-down volume percent, we see a positive trend with the average currently at +14.87, indicating an uptrend. Highlighted periods of the moving average staying above zero in our chart show continued bullish momentum, dating back to early April.
In summary, our recent market moves and analysis suggest potential shifts in the market landscape, highlighting key indicators to watch for future investment decisions. Stay informed and vigilant to navigate through these market dynamics effectively and maximize your investment returns.