Full Moon, Probably the Biggest Factor Today
In looking through the fundamentals and charts this morning nothing stands out.
The stock market has been on a short term Fed induced rally since July 10th and is extended above the shorterm swing area of 1657 on the S&P, the wider short term trading range being 1621 to 1693. Our position remains at a leveraged short level.
Gold has rallied some $ 125 an ounce since we recommended buying some in the low 1200’s. The fact that the Fed refuses to face reality, you have to have some gold. Whenever the FED comes to realization that they have to get out of the way, deflation will again exert its power and we will get out of the long gold position.
T-Bonds are caught in a bind. They are forced to be reactors not definers of market conditions. When things look bad they have to go up, when things look good they have to go down leaving a 133 to 136 current trading range on the September Bond futures.
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