August 3rd Attack,

The coordinated attack on the markets that I mentioned yesterday has the markings of ending today. That again is the Bond Vigilante and Gold bug shorting of bonds and buying gold at the same time. It made no sense then and makes less sense today as higher interest rates and rising gold rarely go together.

One chart I like to watch on this relationship is the TLT bond ETF vs GLD gold ETF. DiggingThe hourly chart below shows the most recent run of this relationship which started on August 3rd, bottomed on August 24th and broke out to the upside today. This could be the catalyst for the mid-term election rally as money moves out of gold and short bonds into stocks.