I have just been viewing a number of charts for indexes, metals
and commodities, as a ratio to UDN (example XLE:UDN). The
result is quite interesting and it dramatically alters my view of
what is happening in the market. XLE, for example, has not advanced
against the dollar and so our perception that energy prices are
advancing is incorrect. The advance in oil prices is a decline in
the dollar.
Now, that does not mean that it was not a good idea to invest in
oil, it just means we are only protecting our wealth, less the
taxes the government takes as we stay even (good racket).
Normalizing the charts also can alter the technical patterns as
our markets are world wide and what investors outside the USA see
needs to be included on our radar.
Anyway, you may want to try it in Stockcharts and I think you
will find it useful.
Normalizing Charts
Posted by jroger on 17th of Sep 2009 at 11:47 am
I have just been viewing a number of charts for indexes, metals and commodities, as a ratio to UDN (example XLE:UDN). The result is quite interesting and it dramatically alters my view of what is happening in the market. XLE, for example, has not advanced against the dollar and so our perception that energy prices are advancing is incorrect. The advance in oil prices is a decline in the dollar.
Now, that does not mean that it was not a good idea to invest in oil, it just means we are only protecting our wealth, less the taxes the government takes as we stay even (good racket).
Normalizing the charts also can alter the technical patterns as our markets are world wide and what investors outside the USA see needs to be included on our radar.
Anyway, you may want to try it in Stockcharts and I think you will find it useful.
That was kind of interesting.
Posted by jcomptonod on 17th of Sep 2009 at 01:40 pm
That was kind of interesting. Thx. I liked the way you pulled off the ratio with falling dollar fund.