I have pasted two charts that are worth monitoring. Chart 1 is the performance of the DOW in 2008. As noted, today's intra-day low in the DOW just surpassed what was experienced in January. Therefore, the DOW is on the verge of breaking down. Reduced earnings and guidance from the various components have confirmed this trend. This is even more important because gold has diverged from the DOW quite sharply over the past few weeks.

Chart 2 below shows a recent and strong inflow into the Gold ETF. If history provides some guidance here, we are very likely on the verge of a very big move in gold. Today's action in precious metals just provides further confirmation.

Lovely day - VHF

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Chart 1: DOW Performance in 2008

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Chart 2: Gold ETF Fund Flows