Hand-in-Glove

Hand-in-Glove

As I recently detailed in this post, for whatever reason, the ratio of gold/silver and the Nikkei have been highly correlated across history.  The correlation has certainly broken down at times, but when the ratio makes big directional moves, it…...

Member only content: Login to view or Register
Gold/Silver Ratio - Confirmed August-1929 Style Break-Out & Cross-Asset Implications

Gold/Silver Ratio – Confirmed August-1929 Style Break-Out & Cross-Asset Implications

Below I plot the ratio of gold vs. silver.  August closed with a clean break above resistance dating back to the very early 1990s. A longer-term look at the ratio is even more revealing.  It shows that the bear cycle…...

Member only content: Login to view or Register
Gold/Silver Ratio Very Close to Clearing Nearly 30 Years of Down-Trend Resistance

Gold/Silver Ratio Very Close to Clearing Nearly 30 Years of Down-Trend Resistance

In the chart below I plot the ratio of gold vs. silver on a monthly basis, a thematic I highlighted in this recent post. Since the ratio peaked in 1991 it’s secular impulse has been one of incessant weakness-to-sideways action amid…...

Member only content: Login to view or Register
Uranium Prices Clearing Decade-Long Resistance

Uranium Prices Clearing Decade-Long Resistance

Confirming my suspicions in a 6/10/18 post outlining a bullish case for uranium, in the left pane below the commodity is actively clearing decade-long falling resistance this month. At the same time, the Trump admin has opened an official investigation…...

Member only content: Login to view or Register
History Being Made Everywhere: Ratio of Gold Miners vs. Gold Breaking Below 80-Yr Support Shelf

History Being Made Everywhere: Ratio of Gold Miners vs. Gold Breaking Below 80-Yr Support Shelf

Another crazy chart/data point below that’s consistent with much of the other mind-melting (i.e., 200-yr-type historical anomalies) stuff I’ve been putting on the site lately… The ratio of gold miners as an industry vs. gold itself has broken below an…

Commodities: Eerily Similar to the Late 1920s

Commodities: Eerily Similar to the Late 1920s

In the chart below, note the significant break-down from a well-defined, decade+ flag pattern on the Thomson Reuters Equal Weight Commodity Index this month. That looks pretty bad.  Further, a similar pattern formed in the ~1915-1930 time period, with a…...

Member only content: Login to view or Register
Equity/Gold Ratio Too Elevated, Suggests Heightened Risk of Mean-Reversion Event

Equity/Gold Ratio Too Elevated, Suggests Heightened Risk of Mean-Reversion Event

In continuing the commodities > equity thematic that I’ve been building out on the site in recent months, this evening I dug into historical SPX/gold cycles. Specifically, I analyzed the three historical secular peaks in the ratio of the SPX/gold…...

Member only content: Login to view or Register
Crude: 1980-1990...2008-2018

Crude: 1980-1990…2008-2018

Recall this mid-May post on the relationship b/t crude and gold.  Therein, I also spoke about crude on its own, as follows: “What’s also interesting about crude since 2008 is how closely its cycle resembles the period from 1980-summer-1987.” I presented…...

Member only content: Login to view or Register
Set-Up for Uranium Looks Bullish

Set-Up for Uranium Looks Bullish

Few realize it, but the US uranium industry filed a Section 232 petition with the US Department of Commerce (DoC) in Jan-18 seeking relief from the harmful consequences of uranium imports, almost all of which come from state-owned, sponsored or…...

Member only content: Login to view or Register
Speed & Ferocity of Commodity Decline vs. Stocks Since 2008 is Historic

Speed & Ferocity of Commodity Decline vs. Stocks Since 2008 is Historic

I’ve recently discussed the speed and ferocity of the relative decline in commodities vs. stocks since the former, via the CRB Index, peaked in 2008 vs. the DJI. At the ratio’s recent low in Jan-18 it had fallen > 81% vs….