The GLD-SLV gold-silver ratio proxy continues to consolidate in a bullish flag (60 min. view here) and therefore, a very bearish divergence to broad markets remains in play. The bulls could party through the holidays if they break GSR down toward the noted green support zone, but thus far no dice on that.
So I am risk averse now, given the liquidity implications, and if the bull rally does resume and GSR is broken down to support, I will probably get so bearish it will make my head spin. I do not like this market, SPX 1360 or no SPX 1360. SPX Symmetrical Triangle or no SPX Symmetrical Triangle.
Edit (12:55) Daily view added for perspective.
http://www.biiwii.blogpsot.com
http://www.biiwii.com
So I am risk averse now, given the liquidity implications, and if the bull rally does resume and GSR is broken down to support, I will probably get so bearish it will make my head spin. I do not like this market, SPX 1360 or no SPX 1360. SPX Symmetrical Triangle or no SPX Symmetrical Triangle.
Edit (12:55) Daily view added for perspective.
http://www.biiwii.blogpsot.com
http://www.biiwii.com
$VIX and UUP look similar, don't they?
ReplyDeleteAs they should IWNATTOS. We drew the parallels between the GSR and USD in #161. More importantly, we looked at how the GSR is thus far in confirmation of the USD, unlike in the summer of 2010. This is the basis for my bearishness beyond the suck-in rally.
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