Commodities are not fairing any better today. Corn, Wheat, Gold, Oil, Silver and Copper are all adding to their losses.
I thought that I would add this chart of the Silver/Gold Ratio to show a measurement of the Risk. Currently traders are risk adverse as the ratio came crashing down from what was a parabolic run from 2009 to April 2011. As you can see, or in this case barely see, a new low has been made starting this week therefore the unwindeing continues even though the USD is weak.
I've added an oval around the bar for visual assistance. Note that structural support at 114 was tested and has now failed on the second test with today's gap to the downside. Look for this are to provide resistance against any attempt to rally. The ratio should work it's way lower between 97-108.
Watch those levels for any sign that sentiment has changed back to "Risk On"
Best of Trading
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