Gold and silver look headed for new highs and TLT is tracking in a similar pattern. And there may be good fundamental reasons why. China's decision to let it's currency rise in value adds buying power to it's growing middle class. . . which is both good news and bad news for US companies. While electronics makers can sell more computers and ipods, retailers such as WalMart will find Chinese imports costing more, and since over 85% of WalMart products are made in China, somethings gotta give if they want to hold their price points, which may in part account for Wally's dollar drop on Friday while many of the markets were rallying.
And then there's the weekend's G20 summit with the Pres throwing in the towel . . and that can't be good for the US economy.
This is the equivalent of a one-two punch for the equity markets and looking in the crystal ball I'm expecting some nasty downdrafts this week.
Although we typically see some month end to first day accumulation, that may not be case this month.