Aperna

Copper/Gold Ratio

Long
We might start to see longer term US bond weakness as the copper/gold ratio rebounds off the lower extreme of it's descending channel. In this example I'm using TLT, an ETF. These two have an inverse relationship and also correlate with the US dollar. Long term US bonds and the USD tend to have a positive correlation giving both a bearish outlook. This is more for analysis than trading and can provide another piece to the USD bear picture. Over the coming months or year we may see USD continue it's bearish trajectory, keeping it weak against it's major counterparts. My relative analysis says USD is currently weak and stronger currencies to pair against are AUD, CAD and NZD.

Check out my relative strength analysis I post everyday on twitter @WhosTrend
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