Loading ...Some Ratio Charts
Here is about 75 years of the BGMI GOLD RATIO flipped both ways. This data is mostly current, data stops at 8/19. Gary, I hope this is what you were looking for. As I mentioned to you in your post these are in kind of rough draft/idea fleshing out mode. Was hoping to put out a more polished version but it doesn’t really matter, you just wanna see the baby.
Chart #1- We see a full blown final capitulation. We could also consider this a major FBO or even head fake. A surprise bottom. Capitulation now allows a new trend to develop. One it consolidates at the double bottom it can advance its move higher.
Chart #-2Nice long term channel with an ascending triangle break out for the end game. Note the perfect measured move above the channel once the BO occurred. The stacked distance of the channel on top of it is the same.- Classic measured move, means move was valid but now fulfilled so it can now revert back to a lower level or develop a different trend.
Chart #3- This is my favorite display of the same data. We have a hyperbolic parabola. This is so exciting because the rules which govern what comes next are air tight. Parabolas once they top revert to their base or 10% lower. Tenters, you understand what this means right? We get a huge bull market in the shares. But just got to be patient!
Hi Plunger, are you able to elaborate on your comment with respect to chart #1, “Once it consolidates at the double bottom”; which double bottom are you referring to? TIA
Yea, sorry I realize thats confusing. I meant the massive double bottom of the 1942 low. One it penetrates that on the upside, it will likely build some cause then resume its climb. No I don’t see it falling to double test the super low. Just picture that as a beach ball under water released. Its not going back down there.
Thanks for the clarification of your thinking. I appreciate the response.
A 50 Year bear Market ?
1968 was the High ?
What a Pathetic Sector PM Miners are
sheesh
A 50 year secular bear in the ratio, not the shares.
As long as gold does not implode these charts indicate a secular bull in the shares themselves has begun.
Yes, imo the only thing we have to fade is the possibility of some kind of DB. Maybe we could get some kind of 50 yr anniversary DB, not impossible, but unlikely.
Thanks for posting this!. Its all about the metals price now. With deflation wrung out of just about everything, I only see up for metals from here. This is why I am watching the TED spread, LIBOR & RINF ETFs. Rising interest rates are exactly what we want to see. That will send real rates further negative.
I don’t see deflation as you say being “Wrung out”. My analysis allows further decline in commodities next year if the economy enters recession. This may, however not hurt gold.
Cool charts Schism. Large implications…