Saturday, April 23, 2011

The Gold/Silver Ratio (GSR) rings all alarm bells

A RSI reading in the GSR above 80 leads to some correction. A reading around or above 90 is a rare event and should entail some shake out.
The Exhaustion Picture tells exactly the same story. It also shows how a trend can accelerate when a good set up fails....
The TimeCycles also seem in sync with the Price chart and hint at end of April +/- 1 week or 2.
The GSR acts as reliable indicator on speculation and now it is red hot at decade extremes. We should pay attention.

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