I haven't seen a stronger contrast between the markets and the real world is quite a while. Thumbing through the Times this morning, even I was surprised at the mountain of dire news about forthcoming economic and business conditions. Yet the markets seem absolutely doe-eyed about the bright future ahead of us.
It all boils down to this: equity markets are going up because our currency is on a relentless path to debasement. Thus, precious metals fans are having the greatest time – – the best in about thirty years. Even mega-bulls like Gary Savage were, last week, suggesting that it might be time to take some PM profits and reload later at more favorable prices, but the runaway PM train just keeps chugging along.
The /ES has been in a 30-point range for about the past nine days, and we're at the upper end of it as of this moment:
Thanksgiving week tends to be pretty bullish (although seasonality has had very poor predictive power this year). Personally, I've been stopped out of about 14% of my positions this morning. My dog's summation of the day so far? "Ruff."
