Just listened to a great interview on the Market Huddle podcast feat. Michael A. Gayed from the Lead / Lag report. Great interview!
So one of his leading indicators discussed was the LBS/GLD ratio and it actually correlates quite well. Although it predicted the 2018 Christmas crash much more distinctly (with a slight trend break down to the trend line false positive in early 2018), but with each major trend breakdown or breakout it 100% confirmed SPY continuation. As for the most recent indication for the March crash, there was a quick gap down in LBS/GLD ratio during the consolidation triangle (indicated exhaustion), even though it didn't formally break until a 10% drop in the SPY.
Scary thing is what's happening now. Bounce to near recent highs, then either a breakout or consolidation into a cup and handle. That likely means we're going to correct again down for some consolidation (as a 3 touch breakout in this formation is typically a little too aggressive). Target is in the 13's, which would put the SPY somewhere between the stratosphere and moon.
Let the melt up continue!
So one of his leading indicators discussed was the LBS/GLD ratio and it actually correlates quite well. Although it predicted the 2018 Christmas crash much more distinctly (with a slight trend break down to the trend line false positive in early 2018), but with each major trend breakdown or breakout it 100% confirmed SPY continuation. As for the most recent indication for the March crash, there was a quick gap down in LBS/GLD ratio during the consolidation triangle (indicated exhaustion), even though it didn't formally break until a 10% drop in the SPY.
Scary thing is what's happening now. Bounce to near recent highs, then either a breakout or consolidation into a cup and handle. That likely means we're going to correct again down for some consolidation (as a 3 touch breakout in this formation is typically a little too aggressive). Target is in the 13's, which would put the SPY somewhere between the stratosphere and moon.
Let the melt up continue!