Or inflation index is sitting right on top of its major trend and suport line (on August 15th, 2011) . If it breaks down then we expect further weakness in stock and commodity markets....

The chart above shows stock yields (1/(P/E)) versus bond yields. When in green stocks are cheaper, when in red bonds are cheaper. This a 35-year chart. The blue vertical lines show extremes when stocks like right now were much cheaper than bonds. In the chart below you can see what happened in the stock market when those extremes occured. So far the stock market always started to rise. 

The home building stock index in orange follows the typical path of a bubble very closely. In black is the Nikkei bubble from 1989. Right now we should see a 9-month period of strength in the US housing market. Perhaps foreigners start buying due to the weak dollar. 

The Gold to Silver ratio reached the red line which is the bottom where it turned during the 1980 silver corner. A bounce back up to the green line which would mean gold outperforming silver is to be expected....

The enormous spread between the Commodity Index (black) and the Baltic Dry Index (orange) signals that the Commodity Index will most likely stop its rise soon and possibly start going the other way.

The tensions in the Middle East have finally also reached Saudi Arabia, but after the Saudi King decided to build 500.000 low-income apartments for his people for around  US$ 70 billion, the Tadawul recovered...

Gold (in USD) has broken through its resistance and if the dollar keeps selling off then gold should keep making new highs. 

The spread between the European Brent and the US oil futures has reached historical highs this week. 

So far the US stock market has been following the path of the pre-election year ending on "1" - follow here if it stays that way.....

If the Sensex breaks below the 18,000 level (in red) then it could be heading down to 12,000 which would be equal to a crash. The 18,000 should hold in the short term but it is important to keep an eye on the development.

The Chinese stock market is about to break out of its 4-year trading range. It is still unclear in which direction but the breakout is potentially strong. Interesting is also that we are coming up to the Chinese New Year on February 3rd. Historically the period before New Year always showed weakness while the period after Chinese New year was relatively bullish. 

Read the explanation in the Blog section....

Silver has broken out of its (50-year logarithmic chart) triangle but recent weakness suggests that it could come back down to its breakout point.

Copper broke through its long-term resistance line....but copper inventories are rising so be careful. 

Is the Japanese Government Bond Yield going through the roof. Are interest rates rising or is the confidence in the Japanese government falling? The yield rose 6.1% today (Dec. 8th). If rates keep rising on the 10-year Japanese government bond then eventually Japan will be in the headlines with their government debt problem.