1) The Shanghai market tanked on the Chinese government tightening its monetary policy. It had nothing to do with fears of a US recession. The across the board falls in Europe and the Americas were in reaction to China’s drop. As everyone on this board should know, correlation is not the same as cause.
2) I feel pretty strongly gold was unfairly punished today, especially considering that the dollar fell. Seems like investors threw out the baby with the bathwater, and there may be a huge buy window.
I pulled out about half of my trading portfolio before half of today’s losses had hit. I’m going to be watching closely for a signal to buy back in, but for now I’m happy to keep it on the sidelines.
