|Footage from April 12, h/t ESPN|
Emboldened that my first big trade since being choked out in April was a successful one (GLD and SLV puts when I predicted the updated chart from last week would break support after the Fed propaganda), I am now long 10 yr treasuries, long silver. Check out the ratio of yields priced in gold ounces (x10): unprecedented distance from 20-day EMA...
Note also that yields-priced-in-silver reached the same level as the metals bottoms of Jan 2011, right before the parabolic moves began.
The silver weekly chart is also at very long term support. Yeah, I can see it closing a week another 7.5% lower, but I'm liking the risk reward here. Hard to believe, but you could buy silver cheaper now than in the first quarter of 2008!
Also consider gold in euros, at very strong support, which tells me that the metals may more or less stabilize here for awhile, at least on a weekly closing basis.
Let me also add, I don't see gold's ratio with crude going below the important level of 13.0