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July was a volatile month. The core trade of GLD/TLT broke higher during July, to then pull back in the last week to finish near lows.

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The other core trade of gold versus S&P 500 had a late month breakdown to approach the 200MDA.

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The Dollar Index also saw a late month rally.

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<svg class="lucide lucide-maximize2 lucide-maximize-2" fill="none" height="20" stroke="currentColor" stroke-linecap="round" stroke-linejoin="round" stroke-width="2" viewBox="0 0 24 24" width="20" xmlns="http://www.w3.org/2000/svg"><polyline points="15 3 21 3 21 9"></polyline><polyline points="9 21 3 21 3 15"></polyline><line x1="21" x2="14" y1="3" y2="10"></line><line x1="3" x2="10" y1="21" y2="14"></line></svg>

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With so many core themes reversing in the final week of July, we ended up having a down month. However I did take of the advantage of the strength of the dollar to add to dollar weakness trades. As much as the late month trend reversals disturb me, I can not forget the “correlation break” we saw earlier this year, when treasuries and dollar sold off as equities weakened. The Economist provides a useful graph.

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