"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

Tuesday, February 28, 2012

Au-Cu Ratio flashes 'not bullish' for broad market

It is just one indicator - and they need to be taken collectively to keep an ongoing narrative on course - but the Au-Cu ratio gives me pause with regard to the ongoing broad rally.

This is a classic consolidation as the ratio has declined out of our early October 'bull pivot', just as it would be expected to.  But if this ratio bottoms and turns up, it is going to do so in conjunction with a routine (or maybe not so routine, per evolving analysis) correction in broad markets.

The ratio's support area is at the 200 day moving averages (EMA & SMA).  I did indeed remove the 10 & 20 in favor of a cleaner picture. 


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at 2/28/2012 07:41:00 AM
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1 comment:

  1. Also, while the dollar is losing support, Bonds are back up, TLT just jump over the looming resistance and could make it back into the 120s from this set-up.

    Perhaps you could do one of your wonderful long-bond to GSR ratio charts on the backdrop of broad markets.

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