Dow(n) Jones -137.63
After touching a high yesterday of nearly 860 the S&P shed 2.01% to close at 841.50.
The GS earnings and equity offering is over now so the market may resume it’s downward trend. Poor GS bagholders. The stock touched 130 yesterday and closed at $115 down 11% today.
This bear rally was violent and news driven. If you missed it, you may have another chance if we tag 666 on the S&P again.
We are still in a deflationary environment folks, so don’t let the market fool you into thinking these higher prices are the real thing.
Some think we are in a bull market when it comes to precious metals and I will not argue; I think the prudent thing to do now that this silly rally may be losing steam will be to establish positions in precious metals and basic materials for the long haul.
Interest rates are as close as they will ever get to zero, so now is a good time to load up. The Fed will raise rates to attract more bagholders for our debt and then you may see the Mother of all inflationary scenarios.