Why is gold rallying when we get better economic news? Why is gold rallying as interest rates rise.
The question is not whether the economy is improving, that has been the case for the last 18 months. The issue is that the consumer in total is underwater, the housing market has yet to clean its self out, unemplyment remains high, and stock values are overpriced. This will take 3 to 4 years to rectify itself.
This start of the month rally is an opportunity for us to shed any remaining long positions and put on remaining shorts that will be needed. The early sell signals are accumulating and once we get the important trend sell signals the market will open up to the downside.