As opposed to playing stock trader hero, I prefer to spend a lot of time on market indicators. Like these boring ratios for example. Like the Gold-Silver ratio for example.
I have an entire subscriber base watching paint dry with me. I am sure I could sell more newsletters by touting all the stocks that NFTRH holds, charting up opportunities and generally playing genius fly boy. But then I would not be sticking to the letter's mission, which is to tell what I think is going on in the markets every step of the way, less the b/s.
There must be a reason we watch these indicators instead of just taking a lobotomy and joining the market fun in a carefree way. That reason is because capital preservation, especially after an amazing run from the depths, is important. I can't tell you if this is the time the GSR will break out as gold has done in ratio to so many other commodities and markets. The silver bulls are all over the gold-silver ratio as well, but in a wildly different manner. You see, there are many bull horns out there trumpeting that the GSR has much further to fall due to silver's historical undervaluation to gold.
We'll see soon enough. Interim deflation impulse with attendant fear, or inflationary greed fest? I have a subscriber who runs a fund, is hugely bullish the PM's and tells me not to let my sensible attitude keep me from the stellar gains ahead. As of this morning, my speculation account was 40% gold and silver miners. Not the near all-in of late 2008, but not bad considering the great year this has been.
The thing is, I am a bottom feeder and as confident as I was at HUI 150-175, I am probably equally discombobulated now. What's a bottom feeder doing flying around up here with all these momo's anyway? My year was made long ago, but I'll continue to hold, watch and manage according to events... and indicators. GSR has not shown its hand. Not yet.
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