Steve's Place

[DeepBlue1]

Gold/silver/USD wedges are all coming to the final squeeze range this week.

Something has to give pretty soon, and with all the new bad news, the unknown quantities of bad debt, etc it looks like a big downer for the general market coming as the hedgefund redemption date of Nov 15 approaches.

Unfortunately for silver/gold, the flight to and hoarding of the USD are accelerating again as evidenced by the treasury interest rates dropping again ACROSS THE BOARD all the way from the 3mth to the 10yr.

So the market is going down which will drag equities as well as commodities down with it since there will be yet less demand and which will in turn hold down any inflationary pressures.

From where I stand, there is nowhere to go at the moment and I guess I'll just stay out until the next technical bounce presents itself somewhere.

Longer term, since Obama was elected, I think there MAY BE a positive bias towards heavy construction and alt energy stocks
but they'll have to weather the next leg down too before they begin to get legs somewhere closer to the inauguration or afterwards.

One possible bright point might be that China has now instituted a HUGE STIMULUS PACKAGE too(relative to the size of their economy compared to ours)which signals that they plan to attempt to continue their growth through domestic consumption.

This COULD POSSIBLY give a little boost to some construction and energy commodities such as oil/coal, but I doubt it'll be anything to get too excited about.