Today yields are popping after dropping recently, USD is doing the same and commodity and resource sectors are under pressure. Also, the Gold/Copper ratio is up and holding its intact status while the Gold/Silver ratio is still neutral. The indication of Gold/Copper is anti-inflationary, or at least anti ‘cyclical and economically positive’ inflationary.
But a hidden indication theoretically in support of the inflation trades is still firm. The TSX-V/TSX ratio (daily chart below), which we put back on radar last weekend, is firm within its would-be bottom/base. In fact, this morning it is up nearly 1% to start the day.
I don’t want to put too many potentially confusing words of interpretation on this but suffice it to say, the speculative resources trades have a positive signal by this measure and also by the nominal TSX-V, which is only slightly negative today as it approaches its previous high for the cycle.
