A quick note that I will be away from the market for most, if not all of the day today. That may be for the best given noise level out there.
Nothing has changed from Sunday and Monday’s communications. I remain in scouting for a bottom mode in the precious metals and seem to be in scouting for a top (at least a temporary one) mode in the US stock market. Again, the problem with each of these scenarios is the Washington noise.
I think it is wise to let the noise settle, although once we get past the debt talks, we have ‘Oct. taper?’ coming up with Richard Fisher already in the media talking down an Oct. taper because of the damage caused by the debt stuff. Does a point come where we just tune them all down and go by the charts and our individual senses of value?
Gold still has a bearish chart. Silver less so, but it’s below the 50 day averages. HUI could double bottom above or below 206 (June low) but also at 170 or just under, as measured by the pattern on the daily chart. The ETF charts are still on the same signals as the end of last week. I’ll try to get them updated before by Friday.
The US stock market is sporting some bearish divergence by momentum indicators and the Bullish % Index. I have been poking it short here and there against a few long positions.
Have a good day.