Slope is approaching its twenty-first birthday, but I’ve got to say, across those twenty-one years, my ratio charts related to metals are probably one of the best calls ever made here. I would not shut up about those things, and although it took months of grinding away for them to take off, once they took off, they just wouldn’t stop. This morning, for example, silver is up yet AGAIN to lifetime highs:
For months, folks were wondering if silver could ever conquer $100, and it did so for the first time just “yesterday” (in trading day terms), which is to say Friday. And yet before Monday’s opening bell, silver had slashed its way up to $111! Incredible! How are those Costco American Eagles feeling in your hands, folks? (For the confused, I suggested a couple of years back buying as many as you could).
The bigger news, even though the percentage move is small, is that gold has crossed $5,000 for the first time ever. That’s going to make for a lot of fresh press about precious metals.
And while precious metals are blasting to the kinds of levels that I predicted (but thought bonkers) many years ago, crypto is continuing to flop around like a dying fish on the floor of a bass boat, in spite of the ceaseless urgings of these empty-headed and amoral grifters.
Only a few days ago, I did yet another metals post called the P-Letter Metals Rally in which I trumpeted palladium and platinum. How are those suckers doing this morning?
Thus, my “mantra” of Bullish Precious/Bearish Equities has been a sensation, but there is one terrible truth: the numerator (precious) has been doing AWESOME, but the denominator (equities) has been totally letting me down! In other words, my ratio charts were BRILLIANT, but precious metals are doing ALL the heavy lifting!!!!!
I offer to you the most recent example, the /NQ futures. They instantly plunged hundreds of points on Sunday, which delighted me, since people are freaking out that own useless and evil federal government will shut down on January 31st (like I would care).
The arrow marks the price gap, and the goddamned thing RECOVERED all night long. As I am typing these words, it’s only managing a drop of 0.25% (apparently because the President is doing his TACO routine and suggesting maybe the government would stop shooting citizens through the head, which is awfully sporting of him to consider).
Thus, over the course of about the past week, the /NQ has been spasming around like crazy but basically going nowhere. It’s maddening.
So, my ratio charts have experienced an epic victory, but only because of half of the equation. I hope to God the second half, equities, start doing their fair share.
I shall offer this important sliver of hope: precious metals were ALSO very frustrating. For example, from May 2023 through April 2024, silver’s net change was ZERO, even though it kept trying to blast higher and failing every time.
It took almost an entire YEAR for silver to stop screwing around and get its act together. Here’s hoping this same agonizing nonsense explains why what’s going on with equities. Time will tell!
