Tuesday, October 15, 2013

Politics Directing The Market

It's all about Washington these days. And that creates a very unstable market. Uncertainty is high and that means a rising VIX and higher volatility. Most are waiting for Thursday. A default is not likely to happen, but how many times more can they elevate the debt ceiling? Politicians are kicking the can down the road, but that's not the solution. It's only making it worse in the long term.

5m-chart SPY:

Daily charts DIA, SPY, QQQ and IWM:

Euro, oil, metals
The euro bounced a little bit near 1.35, but the daily chart is starting to look bearish.
Oil went through 101 intraday, a close below would be bearish with a possible target in the mid-nineties.
Gold and silver bounced of their lows of the day. Gold managed to close with +0.7% gains. Silver and copper were just above breakeven.

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