I know I’ve beaten the equity/precious metals ratio into the ground, but I can’t help myself, because the ratio charts are simply too amazing to ignore. In this instance, the small caps index (Russell 2000’s $RUT) divided by the long-term continuous contract of gold has completed a major reversal pattern, tinted in a lovely easter egg shade below.
This doesn’t just happen to be a quick of gold. Silver is just as potent.
I remain very short equities (by way of long-dated puts) and very long silver (by way of a lot of SLV).
