Consider the chart above. The value of gold is pulling away from crude oil just like it did in October 2008. We can see a golden cross for the gold to crude ratio at that time, and the price of crude fell off a cliff shortly afterward.
Now consider a one year chart of the gold to crude ratio:
We see that once again we have a golden cross for gold that just occurred a few days ago. Will we see another stock market correction and watch oil drop accordingly?
Our target for crude oil in this environment is the $50 to $55 range within months.