This week….. - The “#taper”, the “shutdown”, the “default”. It seems that the US is a regular three way circus. US stock markets lurched down then back up again this past week. First they feared the “shutdown” then they thought it might not be all that much at all. But looming is the debt limit crisis and the potential for “default”. The Republican leadership needs to break with the Tea Party Republicans if a debt crisis it is to be averted. Wall Street would not be pleased if the debt crisis resulted in a “default”. - US #stockmarkets ended the week both up and down. That seemed to personify the confusion. The NASDAQ even hit new highs. Negative divergences abound. Could the US stock market be poised to fall even with a solution to the debt crisis? Time will tell. - #Bonds ended the week roughly where they started. But fear of a “default” resulted in a big jump in short term Treasury bills. As well credit default spreads widened on US debt. There is a US debt auction this coming week (as there is virtually every week). The results could prove interesting. - #Gold remained weak as the feeling there was that all the crises would be resolved. However, the underlying fundamentals for gold remain quite positive. What is needed is an improvement in the technicals. There are positive signs but weakness could lead to a double bottom or even small new lows. Signs continue to indicate that the smart money is getting long. - The #US$ fell again this past week against the backdrop of the “shutdown” and the potential for a looming “default”. Thus far major support zones have held. - #Oil prices rebounded this past week. With the geopolitical concerns on the sidelines (Syria, Egypt, Iran) odds favour oil prices remaining weak going forward.
Posted on: Sun, 06 Oct 2013 21:08:17 +0000
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