The Yin and Yang of…

The Market Sentiment Index that I watch closely has had a huge jump from the January 29th lows. That is the index that measures the combination of long Russell Index and Bonds and short Gold and Silver. It can move by large amounts at times and the two side of the index can tend to have a Yin / Yang effect, first one moves and then the other. In this case we have seen the short gold and silver component make the initial big move, now the long Russell and Bonds side appears to be starting its turn.

And if you are into one-leg viewpoints, today was probably the time to exit from the short gold and silver side of the measure. That by no means is a bullish call on metals, just that one has to keep in mind that this is a Macro measuring stick that thinks in longer term time frames.