My readers know that I am tracking the relationship between silver and gold. A few times the divergences between these two metals delivered nice short - term buying signals. But the last signal was a fake. Although the silver / gold ratio was going up, the entire precious metals market crashed - look at the charts below and the area marked in orange (the upper panel shows gold and the lower panel shows the silver / gold ratio):
Now both metals are drawing another divergence. Gold is going down (green arrow) but the ratio is going up (red arrow). Who will win?