Looks like we are entering 2nd round of fall (one which started in last week of July)...typically such massive oversold condition would have taken some time to get balance but such is the intensity of underlying problems that mkts hardly got week of reprive...
2nd round of deflationary fall seem to have started despite extreme bearish sentiment and oversold condition...if that is the case it is typically the case of liquidation...we are also entering seasonally dangerous Sep-Oct month....
it is the case for massive deflation given the way 10yr and 30 yr have behaved in US and massive disappointment in economic data....
Gold silver both fell hard during last panic sep-oct 2008..though gold was indeed the best performing asset (of course barring USD)....If we are to see replay of sep-oct 2008..then given the way ppl are positioned in Gold...it is likely to disappoint....
Mkts were massively oversold with sharp fall that started in late July....
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