As the Dow Jones Industrial Average advanced further above 10,000 yesterday, gold slipped back below $1,200 an ounce. We are not exactly sure what we think about the stock marketâ€™s resurgence â€“ or about goldâ€™s retreat â€“ but we are pretty sure what we do NOT think.
We do not think stocks have vaulted into a new bullish trend; nor do we think gold has slumped into a new bearish trend. Rather, the recent moves feel like short-term, counter-trend noise. This noise might last a few weeks, but we would not mistake it for music.[Read more...]