08:15am  ~  It’s going to be a day away from the markets, I am playing tennis this morning and then helping a friend with boat repairs later in the day.

Traders staged some profit-taking yesterday as US equities plunged sharply on increased evidence the Chinese economy might face structural weaknesses rather than cyclical ones. In particular, the Dow Jones slumped 225 points to 16,123 with investors starting to unwind long positions ahead of a problematic weekend in which Crimea is  preparing to vote for separation from Ukraine. If that does occur (which seems likely) nobody wants to be caught holding too many long positions on Monday morning if indices tank on Sunday night when Asian markets open.

Gold benefited from this bearish slant pushing its price another $3.00 higher to $1370.7 and speculation that more corporate defaults in China are around the corner also supported the rise. If the disagreement between Russia and the West escalates next week, then the challenge of a $1400.00 level might well be on the cards.