Trading thoughts...
Got a nice little opening pop in ABX and gold stocks,
remaining DIG & SLX still moving up, SH (short S&P -3%).
ABX +5.69
MFN +5.84
NXG + 3.06
GG +2.61
KGC + 5.32
DIG +8.46
SLX +3.42
SH - 3.16
...although starting to rollover now (grab 'em while you got 'em (profits).
I would much rather have seen the DOW up +300 pts, 3 days
in a row, versus up 900+ in one day...and then potentially
stalling on the news.
For commodities, energy was crushed. DUG (short ETF) was up
+100% just in October. And now DIG (long ETF) is up 35% in
a couple of days. Broad resource stocks also rebounding,
while gold and gold stocks are forming a bottom, with some
tradeable pops in individual names.
Bottomline: Main Street just bailed out Wall Street. And
global Central Bankers are injecting an unprecedented level
of joint stimulus, cutting rates, and pumping in over one
trillion dollars into the global economy.
...and it will not end here.
This move was to stop the run on banks, and to inject capital
to prop up the insolvency of Wall Street. The next one will
be to jump start the weakening economy.
Whether credit markets will stabilize, remains to be seen.
Of note, the US Dollar was down on the news. Currencies remain
the most honest and transparent of markets.
This move is just the first of many. And that is positive
for gold. The market is starting to recognize the disconnect
between the physical and the paper markets in PMs.
For those that were wondering whether the Fed would cast
worries about inflation aside, in order to save Wall Street,
wonder no more...
SOTB |
