After being down early in the day, stocks are now nicely higher.
Conversely, after some hawkish comments from James Bullard, gold is down.
And yet, gold’s younger brother, silver, is higher.
What to make of it?
Here’s a look at the ratio between SLV and GLD ETFs. It’s never been this far stretched.
You’ll note that it came in a little bit in Mid-March when the overall market was swooning. It makes sense. When a country is threatened with a massive nuclear emergency, the tough go for gold.
When the market is feeling good, and everyone’s chasing momentum, the money goes for silver, whose rise has been phenomenal. Silver is a momentum stock (as we’ve argued before). Gold has some characteristics of safety.