"As a technician, I feel that there are few analysts that offer value for me, but you do. Your work on Gold ratios has helped my analysis greatly." --Jordan Roy-Byrne, CMT (The Daily Gold) 4.9.10

Thursday, November 12, 2009

Okay folks, something's gotta give...

Either the uptrend in the stock market is going to conclude or the gold-silver ratio is going to go back down. As long as the short term positive correlation between the two remains in place, it is a bearish divergence for the stock market.

Call me a perma-bear if you like, just don't call me late for dinner. And after the aggravation I have gone through trying to catch this pig, I am going to be quite hungry when the turn comes.

If the GSR reverts to its intermediate trend however, it is likely to be blow-off city in precious metals, stock markets and inflation hysteria. So which is telling the truth now, GSR or the stock market?