A subscriber asked why there have been no updates or daily notes written. In case others may wonder, it is because a) I’ve had a busy week and b) nothing material had changed since NFTRH 881. I don’t want to do “make work”, resulting in more effort for myself and unnecessary noise for you.
Yesterday, as the precious metals took a decline along with some other markets I assume due to Powell’s jawbone (jawboning is never a reason in and of itself to overreact, as its effect can be very fleeting) I thought about doing an update. But then I looked at the then-intact Silver/Gold ratio, and decided not to add any noise to your day.
This morning in ‘pre’ it is not only intact, it is on a new leg up. This means that recent themes for the precious metals and commodity/resources spaces are as they were, still bullish. Had I blared in with bearish noise, well, you just know some people might have reacted emotionally.
Further, the TSX-V/TSX ratio was also intact, as this chart from yesterday’s close shows.
As long as this remains the case, reactions like yesterday are normal and even healthy to a degree. A full correction would be healthier, and it will come at some point (he parrots once again). But it appears yesterday was not that point. At least that is not the indication, yet. Hence, no noise from me about it.
As a related consideration, USD has bounced (normal), but below the 50 day moving average it is only a normal bounce. A break through there and some kind of failure by the Silver/Gold ratio would be a material change and start to raise some caution.
