With consideration that Payrolls (median forecast +125,000) will be out shortly and things could change, pre-market, the Silver/Gold ratio (SGR) is smashing its way upward…
The view had been for a potential low and spring back upward in the SGR. That finally happened over the last few days.
The current view is to start watching the SGR as an indication of timing of the rally in the precious metals complex, and also the stuff that was indicated to rally with the SGR, Commodities and related stocks. Specifically, we should be prepared for the SGR to remain in its downtrend at or below the downtrending SMA 200 (orange) and the upper resistance level (allowing for a spike higher because it’s silver, after all).
I seem to often underestimate how fast anticipated situations play out once they engage. The SGR is eating upside real estate for breakfast. If there is no interim pullback it should register the caution zone pretty soon. What I had wanted and still do want is for a concurrent signal like the SGR hitting its high, silver bug pompoms waving AND… HUI at target (500 +/-). It all still seems doable. But this chart is saying we are already now well along toward the projected selling opportunity.
It may be too much to ask for such perfect confluence. But we have nailed this thing every step of the way and I’ll plan to update if/as needed.
