In NFTRH 347 we reviewed why these two metals pairs, Silver-Gold and Palladium-Gold, have a lot to do with indications on the macro markets going forward.

Silver-Gold is below massive resistance, but has room to bounce if the series of higher highs and higher lows from Q4 2014 is an indication. It is within that bounce that an expression of inflationary concerns, can continue. But nothing is proven by the ‘inflation trade’ unless resistance is taken out.

Palladium-Gold was an indicator we used along with the Semiconductor Equipment sector’s ramp up in Q1 2013 to build the case for coming economic strength. That was back when, you know, everyone was gloomy on the economy. PALL-Gold has been whipsawing for a year now, with the result being that the moving averages are drawing closer together. If this goes on to make a bearish signal, it would be time to watch for economic deceleration, out on the horizon.

From NFTRH 347’s Palladium-Gold segment:

"People may say something like 'hey, your stupid indicator is subjective and too selective of two discrete assets with their own discrete supply/demand fundamentals'. In particular, Palladium with its constrained global supply issues (according to some resource sector gurus). 

I would agree, but if Palladium were supported by a bullish supply/demand fundamental, that would make a bear signal vs. gold all the more concerning, would it not? Gold on the other hand is not about China demand, Indian weddings, strong employment reports driving big, smart money into gold or any of the other garbage you see out there. 

Gold is squarely risk 'OFF', right back where it belongs. The setup now is that if/when indicators to the next risk 'OFF' liquidity event come about, 'gold as insurance' is healthy and ready to provide utility to those seeking refuge."

Make of the indicators what you will. I certainly made something of them. But then, I am a lunatic non-conventional market geek not working on Wall Street. Why should weird indicators be listened to when we have got all that trend following noise in the financial media?