Waiting for the Fed
The markets are probably going to meander around through the Fed meeting next week. As European plans continue to gel there is one thing I cannot get out of my mind, and that is the fact that European Central Banks will have to sell gold at some point and the current $ 1627 per ounce level would give one a good short move down to the larger support level at $ 1250. As such I am waiting for some kind of signal that would indicate that the move is imminent.
We are still short stocks and T-Bonds. It is a bit sobering this week to to see the Fed numbers that indicate that average middle class household net worth has dropped some 40 percent since 2007, mainly because of real estate. This fact needs to be put in your back pocket as no recovery will really occur until the upper class sees a similar decline and balance returns.
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