Focus On Where The Strength Is In The Markets Avoid Weakness

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NVDA jumped in after hours trading yesterday following the release of its earnings report. Gold went up and so did silver, however Bitcoin just fell even more, ignoring the rebound in everything else.

I know Bitcoin gurus are predicting huge gains in crypto, but buying anything solely on guru predictions, and social media memes, is not a smart strategy.

One thing to look for in the markets, once it has a speed bump dip like we just saw, is to focus on what holds up the best during a decline and what drops the most.

You want to avoid the latter, and be excited about the pockets of strength in the market.

Well, it was gold that shined again this month, and gold has been outperforming the S&P 500 so far since the start of this year.

Take a look at the GLD/SPY ratio, which a relative strength ratio comparing the action of the gold GLD ETF with the S&P 500 SPY.