GOLD UP BROAD MARKET CRASHES

The Dow Jones industrial average (INDU) lost 449 points, or 4% and fell to the lowest level since November 2005. The Standard & Poor's 500 (SPX) index lost 4.7% and fell to its lowest point since April 2005. The Nasdaq composite (COMP) lost 4.9% and ended at its lowest point since August 2006.

I remain 95% in Treasuries--5% in gold stocks. Tomorrow I will add another 5% in gold to include Royal gold and AUY. I look for a final washout for the broad market over the next 2 days and then a dead cat bounce before we go even lower--see previous posts for fibonacci retracement projections for the $INDU.
This is the most dangerous market of my lifetime.