Today saw a continuation of Monday's consolidation in stock prices, following Friday's big gains. But based on a second day of substantially lower oil prices, consolidation took the form of a major retreat. What Friday giveth, Tuesday taketh away, more or less.
Coming into the close, crude oil is back under $30 and the Dow is down 300 points. Added to lower energy prices, markets have pondered Friday's lower interest rate optimism and decided that rates really can't go much lower. Thus, economies and markets may be on their own, with recession and deflation still the big bogeymen.
Gold, silver, and the mining shares are hanging tough, considering the weakness in oil prices that has mostly guided their movement recently. Gold is virtually unchanged on the day after nice gains yesterday, and the mining shares are still well above their important resistance level, as discussed below.
Saucers Ready To Fly?
By Jon S. Strebler
2016 ... Log in or subscribe to continue reading.