I suspect that the first thing you would expect from this type of "trading" blog is a decent charts to stare at, right?

The first chart I would like to introduce is the GOLD/SILVER ratio chart. 

The general idea behind it is that every time silver outperforms gold we are in a REflationary period and the opposite situation presents a clear case for DEflationary environment.

I would like to post it here along with the S&P500 chart for the same period.

You may clearly see that while GOLD/SILVER ratio has NOT confirmed the March 2009 lows it didn't confirm the current August 2009 either. So what should you expect? My view is that the last rally was driven mainly by short covering as opposed to "smart money" being aware of the coming inflation. So unless GOLD/SILVER ratio plunges below June lows we are still in the DEflationary cycle and stock market rallies shouldn't be trusted too much