Top Call

The 'top' may actually have come in some time ago, with the reversal of the silver/gold ratio. This has since turned up again quite astonishingly. It seems people are under the belief that backwardation in silver means that the price will go up instead of correct meaningfully, and correct into backwardation for some time.

stockcharts.com

The urgency associated with an unexpected breakout of the silver/gold ratio to uncharted territory means unrelenting inflation, if not hyperinflation, at the same time as extreme low interest rates.

An inflationary depression was only mentioned ever once by Paul Van Eeden. He has never returned to the networks for mentioning the deleted word: inflation.

Certainly the silver/gold ratio has reversed from an extreme level, so its more likely that a correction is in order.

Slope is calling the top, comparing it to April 2010

http://tinyurl.com/64u3ycg

They work on extremely short term considerations, so what they are saying essentially is that a major correction is in order that will affect all equity prices.

The three indeces to watch are the volatility index, the discount rate, and the gold price.

-F6