In our last TalkMarkets exclusive, we gave a 'heads up' on the Silver-Gold ratio and its implications for the prospects of a bullish environment going forward, especially in commodities and select global markets. Here is the state of the Silver-Gold ratio during today's US trading...

And the weekly view for perspective. The EMA 80 was another way of saying "deflationary lock down".

The theme is now inflation, folks. That is because silver's utility is monetary/industrial commodity and is relatively risk 'on' to gold's monetary risk 'off' nature. 

Today's ISM report (details available here) was firm as expected, and our ongoing thesis is of a coming economic upturn (of at least moderate degree) due to the upturn in the business of our economic canary in the coal mine, the Semiconductor Equipment Sector (ref. Details of Semiconductor Leadership). Combine these conditions with Central Banks on perma-ease and US Treasury bonds being bought to the high heavens and we may be watching the mechanics of a coming 'push inflation' problem in real time. 

While the 'inflation trade' was led by gold and the gold sector, as it should be, it is now expected to fan out to other areas as indicated by silver's current leadership over gold. If we are correct, GCC (commodities) will hold support and continue to out perform the S&P 500, among other things.  We are generally using the Greenspan era 2002-2007 as a blueprint, although possibly on a more compact time frame.