Parabolic moves higher within mature bull markets usually lead to market peaks. Granted, we live in unusual times so the price action is fitting, but still…….If the US stock market gains some traction in the next week or two, it will be at the expense of gold and the franc. As I write this the Fed minutes state that they will keep rates low to aid the domestic economy…………(and, gold). Gold remains the primary beneficiary of all that’s happening.
Still don’t believe a solid market bottom is in place although yesterday could be the peak crescendo of the down move. I expect 2 or 3 retests of the Monday low, hence rallies are for selling stocks not buying. If we can get close to 1200 on the S&P 500, inverse exchanged traded funds will be of interest.
Long GLD, SLV, FXF