The channel aspect of the ratio charts we looked at this weekend got me curious. I took a look at combining a trendline on the gold:silver ratio with momentum oscillator swings to see if a pattern developed against the GDX. Just using the TL touches was powerful enough but combine it with full STO swings and you get a good tool to for risk/reward entries. I think this chart only fails after a true trend reversal (i.e. bottom) has occurred. Unless you think the low is already in on gold, this seems like poor odds to be long both gold and the GDX. We will see.

Ratio

Meanwhile, anyone else notice the Silver COT picture????? Wowzers….

Silver COT

One last chart to consider is MA’s current gold array from his computer model. According to MA, the top line Composite is the sum of the cyclical models below it both Transverse and Longitudinal based. This is the primary line to watch for this reflects the most important turning points which can be a high or low. You obviously know the difference as you are moving into that target date. In our case it would seem we are moving into a high beginning tomorrow. A gap up at the open Monday followed by a decline from there would make sense to me.

GCFOR-W-9-24-2015