|courtesy of stockcharts.com|
Looking at this strictly as a ratio call, you'd essentially be taking the other side of the 30-year bull market in bonds relative to stocks trading sideways or breaking out from here. Look how SPX/USB rose in tandem with the S&P during the 1990's while the 30-year bond chopped around. You'd want to see the same trajectory in the ratio, but going forward it could be the result of bonds getting killed. It's all about timing the breakdown though.