3 Ratios To Watch

American Equities vs. Bonds are rallying in a downtrend, but approaching resistance.

The stabilization of Miners vs. Gold reduces deflationary worries.

Relative to gold, the 30Y is bouncing off long term resistance, but remains in an uptrend.

Signs of stabilization are emerging as these ratios exhibit mean reversion.

If volatility can stabilize, we may be setting up for a meaningful uptrend in equities. Nevertheless, it is still too early to commit anything more than a handful of dollars to equities overnight.