Guess Who? Silver Gold Ratio

Guess who’s now getting over sold at a support area after becoming hysterically over bought as a short-term caution signal for precious metals (and broad market) investors back in late June?  Why, it’s old friend the Silver-Gold (SLV-GLD) ratio, now reset and no longer an issue from an over done speculation standpoint.

Also of interest is that the gold miners (and even the silver miners ETF) did not break down from similar looking patterns.

Of more interest still?  Will the stock market gain a favorable tail wind if silver starts leading gold?  That is the traditional correlation, but there has not been much traditionalin that relationship over the last couple of years, so we’ll let it play out.  For now, we are on a stock bounce that is sticking to its original goals as we laid out well ahead of time.