I wonder if you would comment on whether AAPL:GLD yields a good ratio to use to buy either of the two. You use GDX:SPY in your analysis. Thanks.
This ratio is indeed interesting, however, the main force driving it is not the price of gold, but the price of the Apple (AAPL) stock. Since we focus on the precious metals market and specialize in techniques relating to it, we don't think we can really comment on AAPL's performance in any way other than to say the company's fundamental analysis appears to justify its current price, but from a technical point of view, the stock looks very overbought in the short term.
There is no psychological mechanism that we can think of that could be isolated through the analysis of this ratio (which is also the case with GDX:SPY), so it does not seem that it adds insight to our analysis of the precious metals sector.
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