We saw the trend reversal today that I was expecting, as silver in particular was getting rather overextended based on the uptrend it has been following. I do not think this was anything more than profit-taking and a bit of a romp by the perma-bears who were licking their wounds and came back in for another go at the bulls.
So what next? Stocks really did not pull back much, except from the utterly unrealistic rally at the open, closing relatively unchanged. Treasury wants to sell its CITI stock and the Street wants the Chinese IPOs out the door.
Bonds got clipped pretty much on the same trend reversal theme although the 3 year auction did provide a spark by having a weak showing.
This market is without fundamental underpinnings, short term and transactionally oriented, rather like the American president, so let's give it a day to show us what is really going on.
The longer term outlook calls to mind an old quote from Norman Mailer:
"There's a shit storm coming like nothing you ever knew."
