Strong Negative Divergence in Economic Sectors

Wednesday September 21, 8:51 am ET
By Kevin Haggerty
TradingMarkets.com

"Greenspan raises the short end 11 times while continuing to pump up the money supply. The US dollar was up, while gold declined with the HUI -2.2%, as was the XAU. Crude oil declined, while the gold/crude oil relationship is about 7 times (7 barrels of oil to buy an ounce of gold) which is very low. If the dollar shows further weakness--as the pundits seem to think--after an oversold rally, then gold will advance to higher prices and expanding that ratio. Gold is expensive when it takes 15-20 barrels of oil to buy gold."

To read the entire article: http://biz.yahoo.com/tm/050921/13166.html