GOLD VS. EQUITIES: “This chart is the ratio of spot gold to the spot S&P Index and since August equities have been gaining sharply upon gold. However, each time the RSI has reached the level for this ratio that it has recently reached, equities moved higher. We’d suspect therefore that the equity market is a bit over‐priced in the short term relative to gold, or that gold is relatively “cheap” to equity and that a bounce is due.”

“The chart this page of gold predicated in US dollars in weekly terms shows how important the current environment is to the gold market in general. Simply put the market must hold… absolutely must hold… at the current levels and must do so quickly or this very, very well defined trend line shall be shattered.”

“The courageous among us may wish to try buying gold, hoping/expecting/needing this trend line to hold. We, on the other hand, shall watch from the sidelines, prepared to pay-up to own gold again if and only if this trend line truly does hold, but equally prepared to sell and sell aggressively if it does not.”

Market analyst extraordinaire Dennis Gartman The Gartman Letter publishes a daily commentary on the global capital markets and addresses political, economic, and technical trends from both long-term and short-term perspectives. His subscribers include leading banks, brokerage firms, hedge funds, mutual funds, and energy and grain trading firms from around the world.

Dennis Gartman: Editor/Publisher Phone 757‐238‐9346    Fax 757‐238‐9546 Email dennis@thegartmanletter.com London Sales: Donald Berman, Alberdon International Phone: 011 44(0) 79 8622 1110