Stay Cynical

• Posted by admin
• on December 26th, 2011

 

 

After a few days off from the market we came back refreshed and energized and happy to see the Santa rally.   But then we looked through our charts and one thing really stood out — silver action, or in this case, non action.

$SI_F chart — dead in the water.    Silver is a “risk-on” metal, what’s happening here?

Here’s a chart of the gold/silver ratio overlaid with $SPY.   As you can see they usually have an inverse relationship but have recently begun to  trend higher together  (meaning that market is moving up while gold outperforms silver).   It’s too short a time-frame to draw firm conclusions but it’s something to keep in the back of your head.

SPY chart near resistance zone from V move from 120 support — needs to digest this move.    We’re in short-the-rally mode until the V formation is worked through.  In bullish markets this means pops are faded intraday but support buyers show up before the close- – and this happens until the move is digested.  In bear markets it means complete reversals.

Follow us on StockTwits and Twitter   

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

blog comments powered by Disqus