by Greg Canavan, Daily Reckoning.com.au:
Gold up, markets down. The Dow lost 113 points overnight while gold tacked on about 10 bucks in the US session. Weird.
You probably can’t read too much into the price action…yet. But you do sense a slight shift might be taking place. In our Sound Money. Sound Investments newsletter we’ve been writing about how markets take months to ‘top out’. Sharp and convincing rebounds follow sharp sell-offs, dragging previously sceptical bears into the market because it’s ‘going up’.
But the rally becomes exhausted, and the bears again look to take control. Of course, you can’t really argue that the bears have been in control for a while now. As we mentioned yesterday, there was a short, sharp correction during May and June, but the bulls quickly arrested that decline.