If we get a 50% housing drop you ain’t seen nothin yet in stocks, the two markets are inexoribly connected right now. I am puzzled as to how anyone could think an armaggeddon scenario like a drop like that in housing could stand alone, but itleast those who thought that have the counter proof right in front of them.
I am not sure who posted the really bullish gold comments, but I am looking for a significant down move in gold that should begin with the next 2 to 3 weeks. I hope todays drop is not the beginning because my entry signal is not set up quite yet. There are very strong long term seasonal and cyclical factors hitting very soon calling for a good sized decline. The commercials also have their largest short position in history, no time to be a gold bull other than a day trade here and there.
Crude oil typically bottoms in Feb, but the commercials are heavily short so as long as that condition exits I will stay clear of longs there, but once they shift, a good upmove should start there. The seasonal is going to be late it appears there this year.
