Markets have Crashed

On June 16^th I mailed my following observations (http://fiat-currency-and-asset-price.blogspot.com/2011/06/hi-this-is-my-detailed-long-term.html)

Today on 4^th August we see that most of the Equity markets have lost 15 -20%. Crude is on the verge of falling down. It had completed the right shoulder as expected and today it even broke the trend line.

Gold have moved up to 1685 and I think it is nearing its top range.  Gold currently is the most difficult asset to understand. There are two prominent opposing forces acting on gold. On one hand we have European debt crisis which increase risk of sovereign default and pushes gold prices up. On the other hand we have withdrawal of QE II which had resulted into reduced liquidity in the market. It should be noted that market need continuous inflow of money to move up, once the inflow is stifled all assets prices are bound to correct.

I still believe that the current buying in gold is the last stage panic buying. It will correct significantly, form what levels is difficult to comment unless it forms negative patterns on charts.  I will keep my readers updated about it.