Follow the Leaders

IBM has been a stock market leader since 2006. This is illustrated in the IBM to S&P 500 ratio below.

IBM to S&P 500 Ratio (Relative Strength):


There's a simple rule when following secular trends - Follow the Leaders. IBM's trend energy has already broken out to new highs. While price is still lagging, it will likely follow the surge. This classic setup, surging trend energy relative to price, has been illustrated numerous time in the gold stock sector.

IBM


Those playing the "chess game" are certain to begin the process of pushing the pieces around in their mind. Gold and the various capital markets do not trade in a vacuum.