The euro is a non-confirmation of the bull rally. And if this break (by weekly chart) in the gold-silver ratio (GSR) is real, then the pig is on borrowed time – literally.
When gold rises against silver, it will do so along with a firming dollar and draining liquidity. That would be the same liquidity that feeds the equity bull.
So, is this a breakout? If the answer is affirmative, then the rally's days are numbered. This does not mean things will grind to a halt next week, but the market is not going to continue to rise if the GSR does.
I am going to keep this brief, as I know some readers are bumming about the guest spots. But I wanted to answer TK's post with a look at the GSR, which has not confirmed a breakout – yet. —Gary
