(This post was published this morning on ZYX Buy Change Alert.)
Obama has cut his vacation to Hawaii short and is reportedly on his way to Washington. The stock market is encouraged.
Gold and silver momo crowd started buying aggressively on the news. This is consistent with gold and silver momo crowd’s pattern of buying on potential good news; this is against the traditional behavior of astute investors who buy gold on bad news as a hedge.
No matter what the ultimate resolution of the fiscal cliff is, it will mean less growth in budget deficit and consequently less money printing than expected.
Fundamentally, a resolution of the fiscal cliff is negative for gold and silver. If the momo crowd runs it up on the news, it will be a selling opportunity.
Gold futures are at $1663, silver futures are at $30.04, and oil futures are $90.09.
S&P 500 resistance levels are 1424, 1439, and 1444; support levels are 1415, 1410, and 1400.
DJIA futures are up 23 points.