J.P. Morgan vs. Silver

So far - go gold

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2010 seems over already:

Gold had a "remarkable" rise of some +30% since the beginning of this new decade.

Silver even had a "sensational" year rising some +70%, which equals to silver outperforming gold 2.3-fold: so far - so good.

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Accordingly, the (following) Gold-Silver-Ratio experienced a "crash-like" performance in 2010 that can be explained with a thrust to the downside out of the (darkblue) triangle that formed between 2008-2010 - which is actually supposed to be a thrust to the upside out of the (lightblue) triangle that was built between the beginning of this century & 2008. However, it will be considered as a thrust to the downside (out of the lightblue) triangle, as soon as the thrust to the downside (out of the darkblue triangle) is trading beneath the triangle-apex of the (lightblue) triangle at approx. 46. Hence, gold is expected to perform better than silver now until this potential event occurs - as the price-level of the apex represents strong hold.

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On December 2nd, Max Keiser stated at the Guardian.co.uk in his readworthy article "Want JP Morgan to crash? Buy silver" that this investment bank currently (?) owns & holds silver short-positions equaling to some 3.3 billion ounces equaling to some 1.5 trillion Dollar in liability - if in need to be covered.

The (following) longer-term perspective since 1980 shows that the Gold-Silver-Ratio predominately moves within the (green) upward-trend-channel & that since reaching the upper (green) trend-channel at approx. 90 in 2008, a correction takes place currently having arrived at the lower (green-dashed) trend-channel at 47 suggesting a rebound to start now. Only if this last support is being breached, another/confirming sell-signal for gold (against silver) is generated (i.e. silver is to be favorized relative to gold). Hence, as the ratio having arrived at this (green-dashed) support, a buy-signal for gold (against silver) has just been issued (i.e. gold is expected to perform better than silver from now on).

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Interestingly, the stock of J.P. Morgan is currently trading at the apex of the (red-green) triangle that has been forming since the mid 1990s. Despite 2 major breachings of the triangle`s lower (green) leg in 2001-2003 & 2008-2009, a breakout above the (red) leg occurred in 2009, whereafter various classical pullbacks to the triangle its apex followed. Hence, the longer-term decision is soon being made if a thrust to the up- or downside occurs: buy-signal (à la thrust to the upside) when rising above the (red-dashed) resistance currently at approx. 45 & sell-signal (à la thrust to the downside) when breaching the (green-dashed) support currently at approx. 34.

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Indicators:

RSI: buy-signal since trading above the (red-green) triangle-apex. Sell-signal when breaching the apex at approx. 40 points, or when reaching the (grey) horizontal-resistance at 79 points (buy-signal when rising above it).

MACD: buy-signal when rising above the upper (red) resistance sell-signal when breaching the lower (green) support.

PPO: buy-signal when rising above the upper (red) resistance sell-signal when breaching the lower (green) support.

The Gold-Silver-Ratio is analyzed constantly at the following website: https://en.makrocheck.ch/29-vs-Silber

The analysis of stocks like J.P. Morgan can be observed at the following section: https://en.makrocheck.ch/229-Banken-amp-Finanzen - however, as buy- & sell-signals are issued permanently, a "membership" is required (free of any costs & obligations): https://en.makrocheck.ch/login.php?status=1

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