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Ratio

Gold/Stocks ratio: Risk off rally?It appears like we're about to see a pullback in equities, or at least a rally in gold and silver, and a pullback in the dollar here. It might have to do with the Italian referendum as well, but we'll know soon enough. Breaking this trendline would signal risk off sentiment, further validating the gold and silver long ideas I've posted. What I'm not sure of yet, is the extent of the rally to come, and wether it is part of a retracement in a long term trend that has turned down (this is possible), or simply the market is sideways and trendless (forming a giant consolidation or sideways pattern, or even a triangle). You can set alert to know when (if) this trendline breaks, set it to 'crossing up', 'once' using tradingview's handy alert system. Once CCI hits +100, we might get a set up to flip short gold, on weakness, so we have to remain vigilant as gold approaches the 1240-1250 zone. Good luck, Ivan Labrie.
FX:XAUUSDLong
by IvanLabrie
12
Gold/Silver ratio: Long term bearish declineThe Gold/Silver ratio shows an interesting setup here, and correlation to inverted SPX, which points to the nature of the ratio's movement tied to risk off/on phases. This has to do with the real world applications silver has as an industrial metal, compared to gold's function as a store of value and risk off protection. I think we can see a long term decline, implying the price of silver will either appreciate or depreciate less than the price of gold, in comparison to it at least. It's probably a good trade to take as a pair, which if you're using futures, implies you use a 2 to 3 ratio, selling 2 GC contracts and buying 3 SI contracts to enter the trade with reduced margin requirements. (I think there's a new contract for the ratio alone, but not familiar with it). You should size the trade based on risking 1% to 2% max if the price were to go against you coming back to 70.43. In the case of CFD or FX traders, you could open trades in the XAUUSD and XAGUSD instruments, or using this XAUXAG or XAGXAU contracts if they exist in your platform. If you own physical gold, exchanging it for silver makes sense at this point (if you didn't already). Good luck, Ivan Labrie.
OANDA:XAUXAGShort
by IvanLabrie
2
Very high probability trade on IYRIYR haved moved over 8% in the last 2 months. With an IV percentile of over 60% we can sell premium and get a higher probability trade. I will be using a combination of ratio spreads Selling the (2) 73 and (2) 78 Puts and buying (1) 75 put and (1) 81 put. This will give us the potential to win $330 per trade and giving us a break even of $72.84 with a 85% chance of profit. The price would have to move another 8% down for us to be in trouble.
AMEX:IYRLong
by AlexanderGotay
1
Structure trade on EURUSD (Part 2)I just had a winning trade on this pair on the previous double bottom. I was stopped out for break even on my second position before it rallied up, but I got target 1. On the other hand, now, we may have to enter again. There is a potential 2618 forming up. Tomorrow we will have Non-farms payrolls, so I will have to keep an eye on that. I will not enter any position during that news event. - Higher time frame confirmation - Structure - 2618 RULES MET
Long
by GasperiniGS