petervankan

How Much Oil Can Gold Buy?

Well, that again is retrospect. We might also say that the unusual high number of dirty Chinese socks in August was a pretty good indicator of the current crisis.
And then, who says the ratio has bottomed ? It might go to 4:1 while the economy picks up.
Mathematical proof exists that the predictive power of what happens on the market is strong in the beginning, but then diminishes quickly. And you kow how quickly ? It is completely gone after 15 ........ minutes.
So much for TA.

On Apr 29 12:46 AM Brad Zigler wrote:

> Actually, the ratio's bottoming at 6:1 was a pretty good predictor
> of the current deep recession

How Much Oil Can Gold Buy?

The gold-oil ratio only means something in retrospect. For predicting the future one may as well use the Belgian pedophiles - Chinese dirty socks ratio.

Buying Gold for Oil Like George Soros

There are countless passible 'historic ratios'. The question is, if a ratio is way off its historic value, must we conclude that it will move back to it ? Or may we conclude that there simply wasn't any historic ratio in the first place ?
I would say in this case: the latter. There is no ratio behind the ratio, so to speak.