Both the SP and the Nas 100 have potential inverse Head and Shoulder formations lining up, with the close today around the respective necklines.

IF there is an announcement of a tentative fiscal cliff deal or some continuance motion adopted, watch out above.

Gold Daily and Silver Weekly Charts - FOMC QE Unfolding

It seems that some on the Street agree with me that the Fed may decide to drop the sterilization portion of 'Operation Twist' and just straight up monetize debt rather than merely shift duration of instruments.

The practical factor is the dearth of short term instruments for the Fed to trade. The other is that the election is now past, and the 'restraint' that the Fed often shows during a presidential election is now off the table.

Will it happen at all? If it does will be it an expansion of the Fed's Balance Sheet of 85-100 billion dollars per month? Will the Fed act at all before the 'fiscal cliff' is resolved?

I am not sure, so I am hedged.

I doubt the Fed will do something more untoward, like expanding their balance sheet AND buying even more non-traditional instruments, at least compared to what they are already doing.

The cut-off for action this year on the 'fiscal cliff' is fast approaching. Although Boehner and Obama are in 'face to face' meetings now, Boehner must deliver a vote in the House, which may not be such an easy task given the intransigence of a sizable minority of the Congress.

The Administration could always try to pass a bill in the Senate, and then move to solve the House in reconciliation should they still remain obtusely opposed to any repeal of tax cuts, but that seems to be a work for next year and not the holiday season.

But who can tell what passes in the back rooms and hallways of power?

Have a pleasant evening.

SP 500 and NDX Futures Daily Charts - Pass the Coffee

It is a sleepy market, thin and a bit skittish.

Much of the concern relates to what will happen if the US cross the 'fiscal cliff.'

FOMC meeting this week with an announcement at 12:30 on Wednesday.

Net Asset Value Premiums of Certain Precious Metal Trusts and Funds

The Sprott Silver Premium is quite inexpensive by historical standards.

Rick Warren: A Life of Purpose

As some like to say, there is nothing new, nothing new under the sun. And there isn't. But that is not quite true; it is self-limiting view of things, when one strikes a cynical pose. And it is not a reason to discount what is truly new in life, the possibilities that are presented, and to ignore them.

What is new is you.

You have never been here before as you are, and will not be here again.

And what you do with life is therefore unique, the only thing which you can truly claim as your own and take with you, when you are no longer here. You will spend a long time carrying it, be it treasure or baggage, or most likely a mixture of both. So be sure that it is something that you can carry well and without shame, that satisfies you, and that you can love. Most are not called to greatness, but to do the work of the day, the little things to which we are called, and to do them well and with a loving heart. And this is the purpose of your life.

Fear not that your life shall come to an end, but rather, that it shall never have had a beginning. For that is to choose a darkness and an emptiness without end or fulfillment.

God beholds you. He calls you by your name. He sees you and understands you as He made you. He knows what is in you, all your peculiar feelings and thoughts, your dispositions and likings, your strengths and your weaknesses. He views you in your day of rejoicing and in your day of sorrow. He sympathizes in your hopes and your temptations. He interests Himself in all your anxieties and remembrances, all the risings and fallings of your spirit.

He encompasses you round and bears you in His arms. He notes your very countenance, whether smiling or in tears. He looks tenderly upon you. He hears your voice, the beating of your heart, and your very breathing. You do not love yourself better than He loves you.

You cannot shrink from pain more than He dislikes your bearing it; and if He puts it on you, it is as you would put it on yourself, if you would be wise, for a greater good afterwards.

God has created me to do Him some definite service; He has committed some work to me which He has not committed to another. I have my mission -- I may never know it in this life but I shall be told it in the next.

I am a link in a chain, a bond of connection between persons. He has not created me for naught.

I shall do good, I shall do His work. I shall be an angel of peace, a preacher of truth in my own place while not intending it if I do but keep His commandments.

Therefore I will trust Him. Whatever I am, I can never be thrown away. If I am in sickness, my sickness may serve Him; in perplexity, my perplexity may serve Him. If I am in sorrow, my sorrow may serve Him.

He does nothing in vain. He knows what He is about.

He may take away my friends. He may throw me among strangers. He may make me feel desolate, make my spirits sink, hide my future from me -- still He knows what He is about.

Let us feel what we really are--sinners attempting great things. Let us simply obey God's will, whatever may come. He can turn all things to our eternal good. Easter day is preceded by the forty days of Lent, to show us that they only who sow in tears shall reap in joy.

Fear not that thy life shall come to an end, but rather that it shall never have had a beginning.

May the Lord support us all the day long, till the shades lengthen, and the evening comes, and the busy world is hushed, and the fever of life is over, and our work is done.

John Henry Newman

Rabbi David J. Wolpe: Why Faith Matters

David Wolpe is among my favorite commentators on religious matters, particularly in some of the better documentaries one occasionally finds on the history of civilization. He is erudite and articulate, insightful and kind.

Gold Daily and Silver Weekly Charts

Two day FOMC meeting next week with the announcement on Wednesday at 12:30 PM.

Have a pleasant weekend.

SP 500 and NDX Futures Daily Charts - Divergence

There was a significant divergence between the Nasdaq and the SP today. It was driven by the financials and AAPL.

As you know, the Jobs Report was 'better than expected.' The drop in unemployment was due in large part to the shrinkage of those considered to be seeking employment, as reflected in the drop of the Labor Participation Rate.

The BLS has been playing it a little loose with the seasonality factor. The year over year of factor spreads are a bit wide.

Fiscal cliff is scheduled to arrive by Dec. 21 which is the last day for submitting legislation for 2012, unless they decide to make a special arrangement.