As the analysis below shows, a rise or fall in the gold-to-oil ratio corresponds to an opposite move in equities ...

... and that is just what happened. As can be seen above and below,

• when the Gold:WTIC ratio (GOR) dropped drastically from Feb.'16 to Oct.'18 the DJIA increased dramatically during the same time period,
• when the GOR increased from its Oct'18 low to a high at the end of '18 the DJIA dropped from its Oct'18 high to a low at the end of the year
• In 2019 when the GOR dropped from its Jan.'2019 high to its present value the DJIA increased in lock step.

Conclusion

As can be seen from the above analysis, the DJIA moves opposite to the direction of the GOR so it is imperative to watch the GOR as it provides a very reliable indicator of the direction the DJIA is about to embark on.