19 May 2008

Comparison of Changes in the SP 500 and Gold



These are the 12 week simple moving averages, looking at the year over year changes in each. Consequently, some of the kicks, bangs and thrills of the daily action are flattened out into trends.

As you probably recall our theory is that gold is involved with the carry trade action.

Interesting relationship between rock and paper. Who's got scissors?