Elliott Wave Plus Informed Subscribers on Friday Morning of an Imminent Up Move in the Stock Market This Week

Elliott Wave Plus Informed Subscribers on Friday Morning of an Imminent Up Move in the Stock Market This Week
As we were headed into the weekend last week (Friday, May 15), many Elliotticians and market forecasting services were content holding on to their bearish positions regarding the stock market, and specifically the S&P-500. The Fed had previously stated that more measures were likely going to be needed to pull the economy out of its current downturn, Buffett was selling off millions of dollars of shares, and talk of major department stores filing for bankruptcy flooded the news. All of which made a very bearish outlook to almost every market forecaster . . . except from us.

When the Stock Market Goes Down, Gold Goes Up. Right?

During the Jan 19 webinar, Sid showed an intermediate-term chart of Gold and the S&P-500 Index, one overlaid upon the other. The chart clearly showed that gold and the stock market don’t always move inversely, as many seem to believe. Sometimes the two items move opposite each other, but other times they generally move together, in positive correlation. For instance, since early October 2019, the two items have generally been moving to the upside together.
This video clip, taken from that January 19 weekly “Counts” webinar includes Sid’s discussion of the above myth, as well as his chart of Gold vs. the S&P. For those who believe that Gold will “save them” when the stock market crashes next, the video is worthy of consideration.
Are there potential trading profits to be made on both the upside and downside of the S&P as well as Gold? Absolutely. But the two items really should be analyzed and traded independently.
Bonus screenshot from the January 26 weekly webinar. Notice how highly correlated the S&P and the XAU (Gold & Silver Sector Index) have been since early October.

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