Yesterday I saw something that I think is in play, and made an NFTRH+ update about it. In a market with so much going on beneath the hood things are moving fast. The whole idea of an extreme in the Gold/Silver ratio similar to the spring extreme in the Silver/Gold ratio hit me over the head and much like I respected the idea that the Silver/Gold ratio was going to bottom and put on a rally, I do the same now with the Gold/Silver ratio.
Per the update’s edit added shortly after…
[edit] It should be noted that these being big picture charts, the extreme signal – even if it is to play out in favor of gold relative to silver – could persist for a while. We’re on the cusp of Santa, after all.
…the use of monthly charts implies that fine timing is not what we are looking at. We are looking at condition. So again, the condition of the Gold/Silver ratio is getting extreme.
What’s more, if I am correct that these ratios will reverse, what better time than after a holiday party? In other words, a Gold/Silver ratio laying in wait during a party, only to reverse upward sometime after Santa. A final expression of bullishness by silver, which often ends such phases with theatrics?
A reminder that silver is big picture bullish now (Captain Obvious). But we are talking “interim” potentials for many markets.
Again, the above is speculation. But it is something I am focused on, as I was the Silver/Gold ratio last spring. You can see by that analog that if the GSR is to bottom and turn back up it could come after a grinding bottom per the SGR’s green box.
Silver is up again this morning, as if to mock my sale (it’s fine, I’ll continue to “play” the year-end market on its terms) and just as it hit me over the head that an opposite situation to last spring could be setting up, it also hit me over the head that a year-end Santa party of some kind could be the final act before reversal.
But again, all of the above is ultimately speculation (as was the SGR rally play last spring) until/unless it actually happens, perhaps in January.
