"Hello David, confusion reigns, welcome to the markets I imagine you might answer.

"I appreciate that you try very hard to 'call it as you see it', unvarying integrity is rare and consequently the most valuable commodity.

"In Thursday's audio, referring to precious metals you said something along the lines of: 'we may have seen the low on the first day of July, but I wouldn't count on that however, I would be a little bit surprised if that low wasn't tested in here, or if we didn't get a pullback reasonably close to it'.

"In Friday's audio, referring to equities/indices I think, you said something along the lines of: 'I don't think we'll get a retest of the June lows'. Are you thinking that we might see a near term divergence appear between PM's and equities?

"Robin Griffiths has a wonderful turn of phrase and he makes use of some lovely analogies, he's clearly been around the block many times, he's interesting to read and I'm glad you include his reports.

"That said, his timing calls have been big time wrong during the past year or so, accepting he's bound to be right at some point, I have learned (following losses, missed opportunities and you repeatedly repeating it for us slow kids), to make decisions based on what the charts are saying, not well reasoned predictions, however plausible. RG opines in his latest report: 'the western markets will peak out soon, probably in late July and then fall until their next buying zone in late 2012 or even early 2013'. A bleak prospect indeed, but to be fair, he does go on to say: 'several things may bend our road map out of shape' and goes on to list some of these things.

"Knowing you are not in the prediction game, you do sometimes offer up various scenarios and rate them on a percentage scale of probability, on that basis, how do you rate the chance of RG's late July peak out and following year long and some decline?"

David Fuller's view Yes, both Eoin and I do try our best to call it as we see it in the Audios, and this should include some assessment of the many uncertainties. Audios remain the most efficient way for us to convey our thoughts on the day. I think they benefit from being unscripted but this requires that we remain clear in our thoughts. For this reason I try to repeat what I regard as important points in a number of Audios, and I would caution against reading too much into what may only be a one-off impression.

On the points you raised, commencing with precious metals, you may also recall me saying on more than one occasion that we are still in a period of seasonal underperformance, but that gold has established a reaction low in July during the last two years, and that range lows were often retested in a sideways trading phase before the consistent trend of the last decade resumed its advance in September.

Equities are also in a period of seasonal underperformance, a summer rally aside. The recent good bounce on Wall Street and a number of other stock markets increases the chances that the March and June lows will hold, in my view, but we are about to find out since a short-term overbought reading is now in effect and the S&P 500 has encountered resistance at the upper side of its current range.

Therefore I was not anticipating any divergence of consequence that would favour the S&P over gold. Actually, gold has considerably outperformed the S&P 500 over the last decade, and I see no trend change in this outperformance confirmed by the ratio of the S&P divided by gold (historic & 10-year), although it has levelled out once again. We can get convergence, up or down, but I would continue to back gold on a relative basis when divergence occurs, at least until something more fundamental such as a significant change in short-term interest rates occurs.

Re Robin Griffiths, I take away from his reports what makes most analytical sense to me. For instance, I strongly agree with the broad sweep of his emerging markets comments. However, I was surprised by the bearish section which you refer to above. Many of the west's economies are mired in debt and credit insolvency problems, as we know. Nevertheless, the successful multinational companies that Fullermoney likes within the region have exemplary balance sheets and relatively reassuring chart patterns.