…as it should be, folks. Textbook.
The Gold/Silver ratio and US dollar, the 2 Riders of Apocalypse, are bringing a (thus far minor) day of judgement to the sinful and Godless speculators who’ve brazenly taken over US and global asset market casinos (after they could be heard audibly sucking their thumbs back in the spring).
You know, I am not just using imagery and hyperbole. I strongly dislike showoffs, braggarts and soulless gamblers. Big wigs, over confident a-holes, you name it. I am not religious in the most commonly recognized sense, but I don’t like soulless things, things with no spiritual or internal guidance about morality.
So the Gold/Silver ratio is shoving a price spike right up the speculative environment’s ass. That means it is shoved up Trump’s ass, Kudlow’s ass, Mnuchin’s ass and of course, Jerome ‘we need more inflation’ Powell’s ass. They will of course react because these kinds of market moves are what jerk them out of whatever they are paying attention to and into the only thing that matters; keeping the inflated and rigged game going in this macro casino.
The Gold/Silver ratio is busting back through resistance this morning. If it holds this status it looks like the 200 day average is the objective. If that comes about, it puts the whole inflation/reflation in question, at least.
And then there is USD putting on a spike of its own. It is at the first objective this morning, which was the previous low. The bounce pattern measures a bit higher and strong resistance is around 96, with the SMA 200 declining toward that.
Right now, the bounces are threatening to exit ‘mini’ mode in favor of moves that could bring significantly more pain to reflated, risk ‘on’ cyclical markets. I have to decide whether to cover my Euro shorts (leveraged USD longs) in order not to be greedy. I have bearish exposure elsewhere.
Counter-intuitively, this situation is a lever to be pulled. When the Trump/Treasury/Fed Triumvirate pulls that lever their utter desperation will again be on full display, just like in March.
Think I am weird with all this imagery and colorful writing? Think what you want. NFTRH is not written that way. But the public site often is. Within that color is what the market is doing beyond all the nominal green and increasingly, red lights blinking out there.
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