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Is The Gold To US Equity Ratio Finally Turning In Gold’s favor

Cory
February 8, 2018

After the recent big couple days down in the US markets there is a possibility that the gold to US stocks ratio is turning. Jordan Roy-Byrne and I look at both gold and US stocks and the drivers for each throughout this year. For a long-term investor if this ratio was to revert in favor of gold this would be a crucial turning point.

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Discussion
31 Comments
    Feb 08, 2018 08:03 AM

    SLV 5 week RSI never hit overbought this intermediate cycle (IC). Every other IC since at least 2014 hit overbought before topping (i.e., even during the bear market!).

    Obviously if the IC has topped, that would make this the weakest IC for SLV in years. At least based on history, this would strongly suggest the IC top is ahead of us. Is this time different?

    http://stockcharts.com/h-sc/ui?s=SLV&p=W&yr=5&mn=0&dy=0&id=p31893446854&a=576507716&listNum=1

      Feb 08, 2018 08:51 AM

      Interesting observation spanky. I will keep that in mind as we fight through this pullback. Silver has been very disappointing in my eyes for over a year now.

    Feb 08, 2018 08:55 AM

    Jordan………….as honest as ever with no outlandish promises. Thanks Cory for the earlier than normal postings today and not contaminating the page yet with politics!

      Feb 08, 2018 08:52 AM

      You’re welcome SD! Al is in charge of the politics postings so if you are not a fan just click on the market ones 😉

      I too enjoy Jordan and his straight forward comments.

      Feb 08, 2018 08:39 PM

      +1

    Feb 08, 2018 08:05 AM

    SIL:SLV ratio met its downside target and negated the black candle from November 20. It could obviously go even lower, but my guess would be that we bounce soon before putting in a lower low in the next week or two.

    Also, I think the Ichimoku cloud is going to offer serious resistance if price even manages to get back up that high. No blast higher until late March at the earliest IMO, and likely after the FOMC (on the 21st?). Pretty much every FOMC that they have raised rates at has seen the metals sell off hard going into the meeting. Maybe this time is different?

    http://stockcharts.com/h-sc/ui?s=SIL%3ASLV&p=D&b=5&g=0&id=p57606729053&a=576516939&listNum=1

      Feb 08, 2018 08:24 AM

      Don’t get me wrong. I would love nothing more than for silver and miners to shock the world and rocket higher here a la 2016.

        CFS
        Feb 08, 2018 08:56 AM

        Spanky, be patient, precious metals are about to slowly take off.

    CFS
    Feb 08, 2018 08:55 AM

    Ira Epstein reminds me of why I moved to the land of fruits and nuts in his morning TA:
    https://youtu.be/s3XDcyNgIn8?t=31

    Feb 08, 2018 08:40 AM

    SLV very weak black candle today. Not really indicative of a cycle low, and if it does mark a low it will almost certainly be taken out at the next cycle low.

    http://stockcharts.com/h-sc/ui?s=SLV&p=D&b=5&g=0&id=p37086390755&a=576534009&listNum=1

      Feb 08, 2018 08:26 AM

      Of course we are hovering right around unchanged now. This could very well mark the daily cycle low for GLD if we can get a swing low tomorrow or the next few days (and not make a lower low than today).

    Feb 08, 2018 08:01 AM

    Good article here from Paul Tudor Jones warning about a stock market bubble – FROM 2014!!!!!!!!!!

    http://www.businessinsider.com/paul-tudor-jones-used-a-quote-from-shakespeare-to-sound-the-alarm-on-a-financial-bubble-2018-2/?IR=T

    CFS
    Feb 08, 2018 08:14 PM

    Meanwhile in the land of fruits and nuts. (Talking about politicians)

    SACRAMENTO, Calif. (AP) — California commissions that oversee coastal lands and water pushed the Trump administration to leave the state out of plans to expand offshore drilling, warning the state would block the construction of pipelines to get oil back to land.

    The agencies weighed in ahead of a public meeting Thursday in Sacramento, the only opportunity for people to register their opinions to the U.S. Bureau of Ocean Energy Management in person in California.

    Fishermen, environmentalists and other critics planned to protest outside the state Capitol before marching to the meeting at a nearby library.

    Interior Secretary Ryan Zinke wants to open nearly all U.S. coastlines to offshore oil and gas drilling. The ocean energy bureau has proposed six sales of drilling rights off the California coast and a seventh off Oregon and Washington between 2020 and 2023.

    California’s State Lands Commission said in a letter Wednesday the state will resist the plan.

    “Given how unpopular oil development in coastal waters is in California, it is certain that the state would not approve new pipelines or allow use of existing pipelines to transport oil from new leases onshore,” wrote the three commission members — Lt. Gov. Gavin Newsom, State Controller Better Yee and Director of Finance Michael Cohen.

    Feb 08, 2018 08:35 PM

    SM and silver miners tanking together. The metal itself look like it is about to fall apart on the weekly chart. Next week should be a hoot.

      Feb 08, 2018 08:39 PM

      2008 all over again maybe? Gotta love the miners. None of the upside with the SM, but ever single bit of the downside during crashes.

    Feb 08, 2018 08:27 PM

    DEG.AX De Grey Mining Limited Trading Halt

    https://www.asx.com.au/asxpdf/20180209/pdf/43rg69kdxtv6rz.pdf

    Feb 08, 2018 08:44 PM

    What’s up with De Grey? I just bought my shares on Mon. Are they filing chapter 11?

    Feb 08, 2018 08:48 PM
      Feb 08, 2018 08:40 PM

      Good ANX post Mickey Mantle. Thanks.

        Feb 08, 2018 08:12 PM

        Red Cloud did a very comprehensive job 🙂

    Feb 08, 2018 08:50 PM

    Always look forward to you having Jordan on solid analysis no BS

    Feb 08, 2018 08:28 PM

    Its tough being called on your crap but I called it….Schiff man = Bob Moriarty.
    QUOTE a number of years ago….
    “I want nothing to do with the stock market” Funny listen to the whole thing….All those IDIOTS been wrong for every but people still listen to them…….
    http://www.avaresearch.com/articles/crooks-liars-idiots/some-fireworks-for-the-new-year-and-a-reminder-about-the-past

    Feb 08, 2018 08:38 PM

    For Bobbo the crypto trasher. Keep pushing gold you con man.
    Gold blew up…yup and the stocks waaaay worse!!….I know many that made mega $ on cryptos…..20x any gold bull market…ever…..so what the hell is the difference?
    But he say Gold was in a correction lol…..you mean it was a full blown BEAR Market!!???
    Silver is crap…copper has held out way better…..the diff is investing FOOLs pumped up silver to stupid…..NONE of my for fathers needed any of it….
    Folks know your limits stay with in it….broken fricken records these guys are.
    http://www.avaresearch.com/articles/crooks-liars-idiots/the-cryptocurrency-scam-is-being-run-by-the-jewish-mafia

      Feb 09, 2018 09:13 AM

      Thanks Bill for the Post……good article on the JEWISH MAFIA…..I posted some of the excerpts From AVA……He does make a lot of sense. I can see why , I think, you like the guys calls….Appreciate……………OOTB

    Feb 09, 2018 09:18 AM

    Ill reiterate…NOTHING wrong with investing in gold….
    Just so many fools in the space. Bob Hoye, Armstrong, Buffet will tell you that…
    As it went up the CON MEN came out of the wood work. BOB IS ONE OF THEM…
    Read back 15 years ago….”You will need PM coins to buy BREAD” lol