A Waning Republican Party…………..with market update
In watching the CNBC Republican Debates last night one can only come to one conclusion. George Bush trashed the Republican Party and the trash cleanup crew (tea baggers) are running around throwing nuts to the people. This is a very sad time for me, an old Goldwater Republican, who has seen this party decline to this level.
There were no big thinkers in the debate. The underlying premise of the debaters seemed to be austerity plus one extra, fire the Fed. An associated theme was what appeared to be to try and redo the recent past , take out the regulations put in after the Great Recession and then cut taxes even more. It seems in my mirror going back to 2000 a picture appears of starting an unfunded war plus cutting taxes during it. This should work out really well. Fortunately I know how to short markets if and when the need arises.
As to the markets today. I am staying long dollar and short gold. I rarely comment on Ag commodities although that is where I cut my teeth and many of my old clients were farmers. In any case the corn and soybean markets from a charting standpoint seem very vulnerable over the next few months and moves down to a little under $ 5.00 on corn and just above $ 10.00 for soybeans look highly possible.
Market Update at 9:40 AM CST:
Gold in Euro terms has declined from yesterdays highs about 4 percent at the moment to 1285. I believe that most gold traders do not make their moves based on charts, you are either a gold bull because you are well, a gold bug, or you are a gold bear because you think the trend to austerity will move through all asset classes eventually. In either case a daily close under 1289 or trading for two hours under 1277 would be a significant chart level.