O Where O Where is the Bottom in the XAU

This sell off in XAU is awesome in momentum and strength. I heard some were watching for a bottom in the XAU to lead a bottom in equities. I must be missing something cuz I dont see how the XAU predicts anything at this point in time.



http://stockcharts.com/c-sc/sc?s=$XAU&p=M&st=1984-01-01&i=p70083262634&a=153667924&r=1044.png

There is a difference between descending a ladder and falling off a ladder.

It's called a crash.

I thought GDX had a pulse Monday with the 10+% rally.

The GOLD/XAU ratio is "off the chart"...again.
http://stockcharts.com/c-sc/sc?s=$GOLD:$XAU&p=D&st=1980-01-01&i=p88841919976&a=150498056&r=8393.png

I heard some were watching for a bottom in the XAU to lead a bottom in equities. I must be missing something cuz I dont see how the XAU predicts anything at this point in time. I think that all asset classes are being liquidated, no discrimination. Only in that sense I could see them all reaching a low at some point and bouncing together for that first reflex rally.

I heard some were watching for a bottom in the XAU to lead a bottom in equities. I must be missing something cuz I dont see how the XAU predicts anything at this point in time.

Yes, it is called liquidity and the $XAU is a great barometer. If the $XAU prints a bottom here, then I would be more bullish for an IT bear rally.

cheers,

john