From Dragonfly Capital:
Gold ($GLD) has been weak relative to the S&P 500 ($SPY). This has been the case since mid 2011. And throughout 2014 there have been signs that there might be an inflection point in the making. Gold might be ready to strengthen against equities. But the past few weeks have shown that it is not time for the fat lady to sing yet.
The chart above shows nearly 10 years of relative performance of Gold to the S&P 500. It traces out a a bullish Shark harmonic, which sounds great for a reversal. Except that the bullish part of that harmonic pattern kicks in after it has fallen to point D, another 25% lower in the ratio. Or worse at a ratio of 0.21 another 45% lower. Ugh. She had better take a seat or order some food......MORE
Spot Gold Down $21.80 as HSBC, Credit Suisse Lower Forecasts (GLD)