Thursday, July 8, 2010

Gold-Silver Ratio... tic toc

The rally is on borrowed time. One scenario (yes I know I am beating you over the head with this):

GSR goes to new high later in summer > market to new recovery low. Election static (and macro massage by powerful policy people) bends it back down into a handle in the fall > market obediently turns up with a significant rally. Next leg higher in GSR > Market implodes sometime in the first half of 2011 and takes out 2009 lows.

Neat, huh?