April 12. Gundlach Indicator…copper/gold ratio

Not a bad time to dust off the [Gundlach favoritie] copper/gold ratio vs the ten year yield.  The reason:  Copper took a tumble today, plunging .0685 to 2.547, the lowest level since early January (and an indication that the ‘reflation’ trade has suspect underpinnings).  June Gold (GCM7) on the other hand, is at a new high for the (calendar) year, at 1277.50.  Likewise, the ten year treasury yield closed at a new low for the year just under 230 bps. 

If one considers the copper/gold ratio as a leading indicator of treasuries, it would portend lower yields, and probably isn’t a great sign for stocks either.

Posted on April 12, 2017 at 2:11 pm by alexmanzara · Permalink
In: Eurodollar Options

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