Since the market is in a very weird place right now, let’s dust off the pairs chart and see what long-term movements they are suggestion.
First we have the NASDAQ Composite versus Silver, which tells the same story as before: bearish equities, bullish precious.
The same holds true for the Dow Industrials, although I would point out on both of these charts there’s still room to bounce higher, which suggests either temporarily stronger equities, or weak silver, or both.
This long-term pattern is even better illustrated by the small caps versus palladium, whose bounce seems close to done.
The value of the NASDAQ versus the money supply shows very plainly how exceptionally expensive the market is, beating even the March 2000 lunacy.
A few months ago, Cathie D. Wood was looking sharp, but her fund has flopped once again versus the boring old NASDAQ 100.
This long-term view of mining stocks versus precious mining stocks has served us well. As predicted, precious has strongly outperformed, and we’re only about halfway down the cycle.
Getting back to palladium, it looks like a long-term “hold” on the metal would perform well.
Lastly, my old favorite chart, stocks versus bonds. Stocks remain incredibly lofty, and with that broken wedge, seem prone to a serious, multi-year fall.
