Dow Gold - 18 month scenario ?

This is the daily chart of the DOWClick Image to enlarge.

I don't believe what the chart is telling me. However, as you can see the Dow has broken out from its channel. I have used that breakout as a 'primary impulse move' and I applied the Fib. levels. The recent peak was at the 161 % level as seen in the chart. The 261 % target it 16000.

This is a chart of the DOW in terms of gold. However, it is an inverse chart. It looks very bullish.

Click Image to enlarge.

In other words it's a bearish chart. That bull flag is actually a bear flag. The fib projection is to the 10 levels. Meaning that the Dow will be able to buy 10 oz of gold.

If you combine both those charts we are looking at gold trading at around the 1600 hundred levels !!!

We know that we have entered an inflationary economy, but is this going to be the result of the trigger happy printing press ? I don't know. Time will tell...I, however am long on 'Gold'.

-Maximegalon