They don’t make it easy, do they? No single day can provide a clear indication of what is ahead. It’s the cumulative amount of days it takes for signals to finalize that does the trick. During that time, it can be (mental) whipsaw city.
The Silver/Gold ratio is bouncing back into its second double-top cap. If it negates it by breaking higher it will not have been a double top of much significance. Until then I view it as an annoying refusal to provide a clear signal. Hence, why I’ve held long positions and partially hedged, rather than put all my cards on the table trying to make profit on a view of further correction.
If I’d have had a more bearish view for stocks I’d probably have been more bearish the precious metals as well because the PMs were aligned with and led the stock market rally.
If the SGR holds here under its secondary cap I’ll keep open a view that support and the rising 50 day average would be tested, at least. If it breaks out, well then I guess it’s…
The Silver/Gold ratio is important for many more markets than just the precious metals. It is especially so for commodities/resources and eventually, USD, which is interestingly positive today. So that is another factor. Who’s trying to fake us out this morning, the SGR or USD?
