European Equities Hammered; German DAX Down 5%; US Futures Down 2%; Italy 10-Year Yield Sharply Higher at 5.56%; Gold Hits 1900 Again
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Italy 10-Year Government Bond Yield
Last month the ECB stepped in to "support" Italian bonds. What is it going to do, buy all of them?
Much-to-do was made over the recent sharp plunge in gold. The pullback lasted precisely three days and now gold is flirting with all-time highs once again.
In bull markets, sharp pullbacks need to be bought, and in bear markets sharp rallies sold. The only trick is catching the turning point, and that is frequently not easy.
However, given the Eurozone crisis, and the likelihood that central banks and governments everywhere will attempt more fiscal and monetary stimulus, it is foolish to call a top in gold as many have done all year.
Mike "Mish" Shedlock
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