On extreme manipulative days like today, it is best to review the fundamentals and Jason Hommel provides a couple of good charts below. In addition, a few other newsworthy items to support PM's include but are not limited to the following:

- China's GDP hit $25.3 billion in July, an 8 month high.

- Russia/Georgia conflict could worsen as U.S. air transports have been used to return Georgian soldiers from Iraq.

- The above conflict has threatened a major oil pipeline to the West.

- U.S. has sent additional carrier groups to the Persian Gulf.

- Indian physical gold demand is surging in recent days.

- Global financials continue to worsen by the day.

- Preliminary numbers yet to be issued indicate that U.S. July foreclosures surged strongly in July.

- Housing continues to collapse globally putting further strains on financials.

Regards - VHF

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Chart 1

Chart 2