Market review 24.08.11

The setup in gold

Hello everyone,

In last week’s post, I discussed why we want to be defensive during this stage in the market cycle:

1. Equity valuations got stretched.

2. Heavy insider selling all year.

3. Commercial hedgers have become net short stocks while remaining very long bonds.

4. Stocks and industrial commodities are showing weakness / failed breakouts.

5. We’re poised to see a ra…