Oil down. Gold up. Bonds down. and Google down big for once. Wassup?
The big run in Gold seems to say that: SOMETHING IS UP...? But what?
It appears that the market thinks that some kind of inflation is inevitable; and that too much money has been printed...hence the run up in gold.
Yet, this inflation seems to have the trait of slowing the economy...eventually...hence the decline in oil...which, of course, is co-relates to faster economic activity not slower.
Bonds seem to be getting real...and the general economy seems to be saying to the FED...RAISE RATES EVEN MORE... And I'm sure the FED will comply in 2006.
The decline in Google today could be a sign that the ASSET BUBBLE is finally abating.
And there seems to be real resistance at Dow 11,000...after all, if the Dow passes 11,000 SOMEONE might want to ask WHY? AND FRANKLY, KNOW ONE KNOWS WHY ON WALL STREET...OTHER THAN THE 'NEED' FOR A YEAR END RALLY...
Ultimately all of the chickens are going to come home to roost...
(and alas, Iraq is becoming a Gordian Knot for Bush & Co that no one can predict...)
Probably the most important data point will be coming this Friday with the Jobs number... The economists seem to say that a lot of jobs were "created"...still I'm not so sure. What is the basis for this other than the need to keep the happy talk going?
MY HUNCH IS THAT NET NET THE JOBS NUMBER WILL BE ABOUT 25,000+... RETAILERS HAVE BEEN CAUTIOUS ABOUT HOLIDAY HIRING. AND GOVERNMENTS ARE PINCHED. I REALLY DON'T SEE THE BIGGER NUMBERS THAT HAVE BEEN PREDICTED...
Of course there are always the fudge factors... Friday will be key...stay tuned.
