Overnight markets were slightly higher, for no particular reason that I could see, other than the absence of any new bad news. Our market opened a little stronger, but by midday it was essentially back to unchanged — though that is making a lot out of a little bit of action, as really not much took place.
Perhaps everyone was glued to the political soap opera that is Washington fighting over small scraps of cuts while the government is running a $1 trillion deficit and saddled with a massive amount of debt. If it were not so serious and sad, it would be comical.
Nonetheless, after trending sideways around unchanged through the early afternoon, the market slid some late in the day and finished modestly lower. On a purely gut-feel basis, I shorted a few Spooz today, but set a pretty tight stop. So far, so good, but I probably won’t stay with this too long. It “feels” like it might be time to catch some sloppy bulls leaning the wrong way, but I could be the one who gets caught instead!
Away from stocks, fixed income was lower, oil was 2% higher, and the dollar was under serious pressure. Meanwhile, gold added 1% to silver’s 2%.
You May Know It Better as “The Dolor”
It certainly does feel like the dollar might be in a little more trouble than it has been, and perhaps that will start to matter to other markets. Meanwhile, beneficiaries of a weak dollar continue to do well.