Is the Action in Gold Signaling a Downdraft for Stocks?
Commodity volatility typically precedes equity movement.
Editor's Note: Todd posts his vibes in real time each day on our Buzz & Banter.
The tape hung tough yesterday despite the flight from commodities.
We took a moment on our real-time Buzz & Banter (click here for a free two-week trial) to remind ourselves that commodity volatility typically precedes equity movement.
Case in point: Gold screamed higher on Friday, rallying an eye-popping $80; two sessions later, the S&P began a two-day 50-handle lift.
Since Wednesday's high tick, gold was down more than $60 at yesterday's low tick; it remains to be seen where the S&P will be in a few days, but it's an interesting observation nonetheless.
Check out the chart below-gold vs. the S&P-to see what I'm seeing.
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Todd Harrison is the founder and Chief Executive Officer of Minyanville. Prior to his current role, Mr. Harrison was President and head trader at a $400 million dollar New York-based hedge fund. Todd welcomes your comments and/or feedback at email@example.com.
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