When stocks are in strong uptrends, they tend to not only do well on an absolute basis, but they outperform their alternatives as well. Two obvious ones are Gold and Bonds.
So if stocks are going to fall hard, like so many people keep telling me, we are likely to see a bid in Precious Metals and US Treasury Bonds. As it turns out, however, we’ve only seen the exact opposite – bonds and metals struggling below overhead supply.
Back in August I made the case that if stocks were going much higher, as we thought they would, then the S&P500 will hold support at the late December lows relative to both Gold and Bonds. You can watch that short video here. This is what that chart looks like now: [Read more…]