Trading System Signals on 12-26-2025

The precious metals are an interesting story. The Gold to Silver ratio has been distorted relative to historical ratios for a long time. It's difficult to determine if fundamentals have changed and the new ratio is justified or if the pricing has been out of line for a long time. I still believe there are some longer-term consequences that go back to at least 2009, when the Federal Reserve kept interest rates at 0% for many years and started Quantitative Easing. The easy money policy that created a wealth effect for asset holders, also seemed to "suppress" prices for commodities. The price distortion from this era could still have some longer-term consequences that we have not yet seen.

Another interesting rumor is that Samsung went to the CME requesting 50 million ounces of Silver and the CME was only able to offer 5 million ounces. If there are not enough natural resources to build out all the latest technology related to AI and electric cars, it will be interesting to see how the technology stocks could be affected. Here is the youtube link.

As a technical trader, these are interesting stories, rumors, ideas, and potential fundamentals that we don't directly trade but use to keep us on our feet in our short-term trading and look for opportunities to trade both sides of the market and manage risk.

Hypothetical Trading System Portfolio Signals and Results from Friday 12-26-2025:

Two System Portfolio NQ = +$165

50K Portfolio = -$176.50 on Micros, or -$270 when mapping Minis to Micros

Stock Index Portfolio 18 = -$1,555

Stock Index Portfolio 37 = -$1,662.50

Diversified Portfolio 57 = -$1,032.50

Silver Portfolio = +$1,275