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That's hilarious (and informative) market commentary, DNARBY.
ReplyDeleteWorld class for sure
ReplyDeleteAbout my chart, I had already been using the (JJC)*(SLV)/(GLD) ratio as a risk-on/risk-off indicator. As you see, I multiplied that by approximately equal dollar amounts of copper, gold, and silver added together similar to what Steveo does for his Precious Metal Exuberance Index (he uses a historical average whereas I use current market prices). The logic I used when experimenting: "Find a combination that will produce consistently lined up points for a channel or trend line." I imagine there may be other combinations of the three that could produce a beautiful chart too. I'm already looking for alternatives or variations.
ReplyDeleteIs this chart supposed to suggest some directional bias one way or the other?
ReplyDeleteRBW, how art thou these days? Still working diligently and finding far more interesting indicators than I ever could. That's quite an amazing chart, brilliant, in fact. Kudos to you.
ReplyDeleteHope to see you here in the future, I'm a huge fan of Steveo's blog.
Nope, I don't think the chart suggests some directional bias (anymore than any other chart does). Usually the bias is supplied by the observer, not the chart itself, right? As for my biases, I may be inclined to short copper or silver (determining which would be the better short is another matter) if the price action returns to the top blue line. For the past year and half, that has been a great place to take profits if one is long the trend or enter short counter the trend. The risk is that this time could be different. There is no law of physics that says the price action couldn't go above that top blue line. In fact, I should draw a 133% channel extension right now as a reminder for myself. . . .
ReplyDeletehttp://content.screencast.com/users/raised_by_wolves/folders/Jing/media/52185c6b-3e36-4a27-9459-3e3fbd73e07d/00002620.png
Great ratio rbw, gave me some new ratio ideas to experiment on
ReplyDeleteI'm alright. Have you had any dark chocolate recently?
ReplyDeleteI love that " the bias is supplied by the observer", how true.
ReplyDelete