Dow:Bitcoin ratio vs. Dow:Gold ratioMore chart wank from me... sorry.
It's interesting Dow:Gold has been a thing for a while now I read. It makes sense I suppose if you think of gold as the safe haven asset and the Dow as the premiere global money machine. Unfortunately trading view only has gold charts going back to the late 60s, so here is a link to a chart dating back to the late 1800s: undervaluedequity.com
Actually the 6month candle on the Dow:Gold looks like it might close as hanging man (weak I'd say), so that ratio might move sideways as happened in the mid 1990s. The Dow:Bitcoin is weekly. I think it's more difficult to say. Maybe an arch as in 2014/15/16? Maybe are shorter retrace as in 2011/13? Maybe something completely different?
The general trend is interesting. Gold is losing to the DJI but Bitcoin has been crushing it. Hope it continues.
Ratio
Risk on/Risk off, XLY:XLP ratios, THE Real money flow indicator.Was recently shown this little gem of a ratio chart that will help gauge strength to certain markets such as the stocks and other financial instruments as the S&P, Dow Jones etc
So what does it all mean??
The ratio of two diametrically opposed asset classes often provides insightful clues about what investors are doing.
The XLY:XLP ratio is a perfect example. Its not a hypothetical as it uses real money data based on what investors are DOING and NOT what they maybe thinking or projecting...
XLY represents the Consumer Discretionary Select Sector SPDR ETF.
XLP represents the Consumer Staples Select Sector SPDR ETF.
XLY is the ETF which tracks the consumer
discretionary sector XLY’s top 5 holdings are...
Comcast (CMCSK),
Walt Disney (DIS),
Amazon.com (AMZN),
Home Depot (HD),
McDonald’s (MCD).
XLP tracks the consumer staples sector, with
top holdings of...
Procter & Gamble (PG),
Coca-Cola (KO),
Philip Morris (PM),
Wal-Mart (WMT),
CVS Caremark (CVS).
So how does this affect markets?
When the chart value rises its a clear indicator that people are happy to spend freely and without caution, investors will look to increase risk, where as if the value starts to go down and decline, people are spending more on everyday essential items and thus stock markets are in shrinkage, decline and investors are taking LESS risk.
we can clearly see how this chart reflects current highs on the stock indices if we compare to the current S&P500, Russel, Dow Jones and so on
If this article has helped or you have any further questions, please leave them in the comments below.....
HYPERBITCOINIZATION: Shiller 10Yr Price/Earnings Ratio (S&P500)Similar to dividend yield price:earnings (P/E) looks at the profitability of stock shares. A high P/E ratio means that stocks are becoming less profitable which indicates that they are overvalued.
When the market becomes overvalued it is a sign to attentive investors to stop buying and think about closing positions. The more a market heats up, the more the proportion of cautious investors gives way to reckless investors and day trading / speculation. Such a runaway process does not carry on indefinitely. it will correct.
The Shiller P/E is therefore a warning to investors of an impending crash.
Shiller calculates the ratio for a given year over the proceeding 10 year period (adjusted for inflation). This approach helps to dampen short-term, intra-year "noise". It allows us to visualise risk and make direct comparison with market history.
Shiller calculates Price/Earnings as follows:
1) For any given date, take the yearly earnings of the S&P500 -0.24% -0.24% for the previous ten years.
2) Adjust for inflation based on Consumer Price Index
3) Take the average
4) Divide current price of S&P500 -0.24% -0.24% by the average calculated above.
5) Repeat for every year in the chart
Data provided by Quandl.
BTC: short squeeze soon possibleHi,
a quick update, since BTC is doint it's boring thing again.
However, interestingly, we have now a similar situation as in early April. The shorts are rising more and more, and will soon be higher than the longs.
In this case, I think we'll see a nice short squeeze, as in April.
I'll keep a close eye on the long/short ratio at Bitfinex. The indicators are otherwise oversold on one week and three days, which coould indeed mean that we'll see short term pumps up to 10k.
And then when everyone is hoping for the bullmarket again, and longs are high again, BTC will probably brutally destroy all hopes and dreams and continue with the bearmarket till 2019, hehe.
XMRUSDT (Volume Analysis Prediction 3/22/2018)The coin does not always follow the market
And take it with a little risk on the lower boundary of the consolidation, it's to get a good opportunity with a little risk
In general, the market(BTC) continues to be bearish, which affects all coins.
Entry point: 205.4
Stop: 194.5
Target1: 224.4
Target2: 239.6
Put Ratio on SPY (86% Probability)New Year, and the market continues to go up with no mercy. With the over extension of the 20 EMA, Eventually it will have to make a correction, so I am trying to pin the down move for max profit at the nearest high volume area. Implied Volatility is still very low with the VIX at ~9 and IVR of 14, but we have to keep trading. Would make money as long as we stay above $262.40 in the next 42 days.
The Trade:
42 days to Expiration
+1 269 Put
-2 266 Put
For a .64 Credit
Probability of profit 86%
Max Profit $364 at the 266 Price point
BEARISH BAT PATTERN 240PA RECENTLY BROKE AND CLOSED BELOW THE LAST STRUCTURE LOW AND IS FORMING A COMPLEX PULLBACK, AND COMPLEX PULLBACKS HAVE BEEN KNOWN TO CREATE POTENTIAL ADVANCED PATTERN FORMATIONS. LOOKING FOR PA TO TEST THE 88.6 RETRACEMENT AND REVERSE. AND POTENTIALLY RETEST STRUCTURE LOW. PLAN YOUR TRADE, TRADE YOUR PLAN. GOOD LUCK TRADERS.
DJIA/DOW JONES short idea (m30/H1)Dow Jones INDEX:DJY0 formed a bearish Wolfe wave.
Being supported by RSI divergence at m15-m30 timeframe and significant stopping volume at point 5, it appears to be a good sell entry point.
Crossing line 2-4 supported by increased volume should confirm the move South.
Opened 3 positions at 22049/50, SL 22167, TP 21878
GL All!