There are Still Trending Markets Out there (Gold)

With the constant ups and downs in the equities markets, it's easy to forget sometimes that there are still markets out there that are trending. The stock market has been choppy, not just this year, but over the last decade. This morning I received my weekly chart from the good people over at Chart of the Day. It is a clear reminder that there is always a bull market somewhere. The dip buyers have certainly been rewarded in this market.

Take a look:

"As today's chart illustrates, the massive bull market in gold that began in early 2001 is alive and well. In fact, as today's chart illustrates, the pace of the gold bull market has only increased over time. Since peaking in early September 2011, however, gold has retreated. Each pullback has brought gold back down to support (green line) of its accelerated uptrend. Over the past two weeks, gold has declined once again and has crossed below the $1700 per ounce level and is once again testing support." - Chart of the Day

Sometimes we look at some short term charts to take advantage of nice risk/reward opportunities in the stock market. There is nothing wrong with that at all. But while we're doing that, I think it's important to understand that there is a bigger picture trade going on out there at all times. We focus a lot on Stocks vs Gold ratios here on allstarcharts because that is a very powerful trend that is in place. But just looking at the absolute performance of the yellow metal over the last decade certainly is impressive. Remember that as we're trading in the short term, all of this comes within the context of a much more macro environment. As a top-down guy, I love charts like this. I hope you find some use for one this as well.

Source:

Gold - ChartOfTheDay.com (11/23/11)

Tags: $GLD $GC_F $SPX $SPY