The market was running the usual daily routine, with stocks grinding higher and gold under pressure, but in the last hour Fitch came out and warned of US bank exposure to Eurozone debt, and stocks folded quickly, and took gold and silver down with them.
The US dollar was remarkably lacksadaisical. Option expiration in the metals is next week. And it is a holiday shortened week in the States for the Thanksgiving holiday. Trading should be a real treat. I am probably going to take Friday off and catch up on my reading and some work in preparation for the winter.
I believe THIS week is a stock option expiration, so we might see more gimmicks like this as the market coils within a very obvious symmetrical triangle which we have previously noted.
I had a heavy stock short by the last hour as I sold the SP index to cover a bullion position even more fully, and took some of the short off in the after hours session.
Short stocks and long bullion is still making sense if you can get a sense on how to play it. But for 99 percent of investors, staying in the fundamental trends with a time appropriate portfolio allocation is by far the most effective course of action based on my experience.
