As the US dollar index ticks a new cycle high, pressuring target zone #2…
…the Gold/Silver ratio is weak, and thus not confirming USD, at least from the perspective of its ability to send the macro back into correction mode amid liquidity problems.
So at the moment I am sitting on my hands not doing anything, but keeping an eye on the Gold/Silver ratio. It indicates no particular liquidity problem in the markets and thus, the prospect that USD may fail in its bear trap rally. But if it goes the other way, so be it as well.
I will not be watching the markets like a hawk, personally. But this is a general guide for us.
