Thanks to golds, metals and materials the TSX once again made all-time highs but nobody else did. At least not as yet but since that big reversal day on July 31 markets spent the past week trying to bounce back. Are more new highs coming despite the deteriorating background?
Yet just as Gold remains undervalued relative to its most foundational metric of Dollar debasement, so does the S&P 500 remain overvalued (understatement) to its most foundational metric of earnings.
When we look at the overall action in the gold, you're sort of trading in the center of this correction phase. On the swing line, you've got a higher high and lower low pattern.
