HDGE, Alternate To The Stock Bull Market

 

 

 

HDGE is a very good inverse indicator for the stock markets. It recently just crossed the $9 price level, but so far has stayed above $9. HDGE can always make another dip, but the VIX is also struggling to go lower. HDGE has several small open gaps above, so that also helps to make the bullish case for HDGE, (Bearish case for stocks)

In the long run HDGE would have to clear  that $13 price level again as that would only correspond with one set of previous 4th waves.   Next week should give us more info, as this Trump bear market will get serious.  

I also started a Gold/hedge ratio, which sits at 134:1 right now. I still have to check back to find the extremely cheap Gold/hedge ratio, which would be at the February 2016 time period.

Once the Gold/Hdge ratio approaches the 91:1 ratio again, then I would say that HDGE has become expensive again, and that stocks would be cheap.   This may happen at an “A” wave or the first part of a bear market. 

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