S&P at 1155; Gold at All-time High
Well, there is that 1155 number we’ve been waiting on. It’s possible we can settle down in here for a bit.
I have a negative bias going into the next week of trading, but it remains to be seen whether or not that will play out as predicted.
The EU’s bailout plan seems like a lot of bluff and talk so far and not a lot of action. They have however opted to carry out their market operations (buying of bonds on the market) in secret. So that has to have a lot of the speculative shorts spooked. You never know when the big bad boogeyman will swoop in with bags of your tax money to bankrupt you by manipulating the market in an ‘irrational’ manner. The initial reaction in the markets was of course a rocket shot in the Euro and the indices that track the eurozone equity complexes — and some tightening of blow out bond spreads, but the luster seems to be wearing off of that polished turd already.
In other news, gold is trading at an all time high in electronic trading after hours after closing at 1220 in the pits. Of course this will probably get it a mention in even the mainstream news sources and it’s rapidly moving back to a page 2 or page 3 story.
I’ve been a big believer in deflation and something that is called the ‘priceless dollar theory’ — or at least a variation of it. That said, I’ve been telling people privately for at least 6 months that I thought the dollar AND gold could perform quite well at the same time given what is going on. That’s obviously played out — but there may actually still be more room to the upside for both. We’ll just have to see just how far the Fed is willing to go to defend the euro (and likewise debase the usd).
Back to Greece for a second: it’s been reported that there will be more riots, er, i mean demonstrations tomorrow. This HAS to be factored into the markets already, right? right? Well, we’ll see.
So, this is not financial advice, cuz I’m not qualified to do that sorta thing. But, I would suggest that all long term investor types (the buy and hold stocks, not traders) calmly get out of the water at this point. We just saw some people get sucked under, and I think I saw a fin circling the wading pool.
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