Smart Money Index Update

I’m pretty sure this is why the stock markets are crashing. Let’s look at the NASDAQ Smart Money Index.

The smart money (red chart) is leaving, while the sheeple (blue chart) are buying. Soon the sheeple will realize the door is shut.

Smart Money Index: NASDAQ and gold version

I can’t get enough of this Smart Money Index, so I made one for the NASDAQ.

As you can see, the NASDAQ bubble of 2000 is very visible here. The smart money was leaving the NASDAQ years before the bubble burst. Today, we also see that the smart money has already left the building (red chart going down).

Let’s do the same for gold.

I  have the feeling that the Smart Money Index for gold isn’t that useful to predict the gold price. But when looking at the chart I see that gold is pretty flat at this moment. I don’t expect any large moves yet.

GDX VS. NASDAQ

Since October of last year the NASDAQ has been greatly outperforming the gold miners (GDX). The NASDAQ went up 25%, while the gold miners went down 20%.

That’s a huge disparity and it can’t last for long.

Gold miners VS. NASDAQ