Monday, March 15, 2010

Gold to Silver Ratio

Gold to Silver Ratio (GSR) represents on of the oldest measures of risk aversion to risk.

The GRS is illustrating the depressionary chop. Liquidity trade on, F-TV scream bull market, liquidity trade off, and the wheels fall off with everyone milling around in disbelief.

I characterize this chop with stocks trading within a depressionary box. Lots of drama, arm waving, but overall its nothing more than directionless chop.

Did a new down trend, liquidity trade on, start in 2009? Time and leverage flow support that conclusion. Most likely we've enter a consolidation range shaded green. A break of the orange up trend line would provide more clarity.

Gold to Silver Ratio (GSR) And Gold to Silver Ratio:

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