ridethepig | A game changer break in play for Copper/Gold ratio We can experiment with the opening here in the copper/gold ratio as commodity shortages begin to make the rounds as widely expected.
📌 Probably the most sensible response is to prepare for a slingshot into Copper with reversed flows in and out of Gold.
Shortages/
It seems to be an inflection point at an early stage in the crisis. I would have preferred here to have seen the commodity shortages be avoided as more civil unrest will always follow. In a situation where monetary stimulus cannot solve a health crisis and no longer has the possibility at its disposal. We can conduct a whole new round of charts for commodities and look to play the currency exchange legs accordingly.
As usual thanks for keeping the feedback coming 👍 or 👎
Hg1!gc1!
The Gundlach Indicator: In No Man's LandThe copper/gold ratio is traditionally viewed as a good proxy for bond yields, and that relationship has held mostly true of late. That said, we do not agree with all this exuberance over a topside "breakout". The ratio is sitting right in the middle of the recent range with heavily overbought RSI levels. Could go either way.
Short Bonds & Long Copper | Copper/Gold vs. 10yr YieldsIt looks like the Bond market hasn't priced in growth or we're going to see a nasty reversion trade in the materials sector and a bond pop.
The Copper / Gold pair is a great proxy for inflation due to the divergent properties of the 2 metals. Copper is purely an industrial metal and a proxy for inflationary growth so the 10yr reacts correspondingly. Gold, on the other hand is a precious metal and trades similar to a monetary instrument and is loosely correlated to the long-end from the inverse yield relationship.