Inverse Relationships Installment 2.
One tool I use to position myself, long or short, is any strong correlation in the 10 Year Treasury Note yield and an interest sensitive asset.
Look at-Gold. There is a CAUSE & EFFECT you can use. A classic predictive tool.....
The INVERSE relationship when interest rates fell and gold-began to breakout to the upside.
This is why I have been long gold-SWC-HL-GORO-GDX-many times.
My advice is to look for INVERSE relations and strong correlations in opposite directions.
It will give you an early warning for market turns.
As always, good luck to you. Don.
One tool I use to position myself, long or short, is any strong correlation in the 10 Year Treasury Note yield and an interest sensitive asset.
Look at-Gold. There is a CAUSE & EFFECT you can use. A classic predictive tool.....
The INVERSE relationship when interest rates fell and gold-began to breakout to the upside.
This is why I have been long gold-SWC-HL-GORO-GDX-many times.
My advice is to look for INVERSE relations and strong correlations in opposite directions.
It will give you an early warning for market turns.
As always, good luck to you. Don.
