It’s safe to say it’s been a volatile week for markets and a bad one for stocks. But, with the rout showing early signs of abating, we’d like to finish the week focusing on a market which went up this week. At the beginning of the month we highlighted Gold’s potential to break higher. Noting the general lack of mean reversion throughout 2018’s decline, signs of bearish capitulation at the lows along with extreme short positioning, we felt gold was “vulnerable to rapid short-covering if market sentiment changes abruptly”. Well, sentiment certainly changed and gold’s prospects have picked up. Using a simple, equally ... (full story)