Wednesday, November 11, 2009

Non-Confirmations -- Industrials vs Transports, Gold vs Silver

since my newsletter production has been rather sparse lately, I was about to send subscribers a quick email update, but then I figured I could just put it up on the blog instead...

plenty of indicators and whatnot at which to point to satisfy the preconceptions of bulls and bears and all the gradations between, but the non-confirmations on the two pairs below are the simplest and most important in my opinion.

even with Mr Buffett's vote of confidence, transports haven't hit a new high. then silver hasn't broken last month's high even though gold has been trading above last month's high for over a week now. so I'm remaining fairly skeptical of the inflation thesis, for now at least.