Friday, February 25, 2011

Beast Prowling And Public Sleeping

The gold to silver ratio illustrates a cyclical shift from gold to silver since 1991. This cycle has showed periods and of ebb (1998-2003) and flow (1991-1998 and 2003-2008). A break of the 1998 low would imply the follow: (1) a retest of the 1968 low (15:1 ratio), and (2) an acceleration of silver’s out performance.

Gold to Silver Ratio (GSR):


Silver has completely the three taps and out by showing that previous resistance (2002 upper linear channel) has become support. The probability that higher-order trend acceleration can materialize has increased substantially with the completion of the above technical setup. In other words, “the GAME”, unbeknownst to the majority of the public, has quietly changed in silver and gold. This historic change has been confirmed by TA, leveraged money flows, and global events. I can only describe the situation as the beast has begun to prowl while the public remains asleep.

Silver, London P.M. Fixed:


Silver London P.M Fixed and the Silver Diffusion Index (DI)



As I wrote back in December 2010, the gloves are off in gold and silver. Violence within the trend will only increase as time passes, so be patient and disciplined when buying the dips. The “GAME” has changed and the beast is prowling. This means the rhetoric that supports the game will adapt and escalate.

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