The copper ETN divided by the gold ETF shows a solid decline all year. It's meaning is that the metal linked to economic growth is underperforming the metal linked to fear and hedging. And that is not a good thing for the economy down the road.
True, there is some rally room to the trendline but with ratios you should give them a little leeway when it comes to patterns and lines. Just one more bit of evidence to put on the bearish side of the ledger.
2 comments:
great perspective - always find your unique perspectives insightful
what happens if your swap out copper for oil (i.e. USO/GLD)
Oil has a mind of its own with its political considerations
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