Profit taking is the name of the game in global markets today as some of the biggest winners retreat. It’s a similar story in tech stocks, USD shorts and some other high-flying assets.

Perhaps the highest flyer of all this year has been gold, which is up nearly 50%. It’s a bit less today with a $42 decline to $3721/oz. In the last month, we’ve seen incredible dip buying in the rally as any decline in the $50-60 range (and often much smaller) was bought aggressively.

That will be put to the test again this week. I suspect the break of $3750 has led to some selling and that’s entirely healthy. The market will at least need to consolidate before thinking about a run to $4000. Moreover, in the past week, we’ve seen some aggressive buying in gold company shares in a sign that retail has finally joined the party.