What The Market Is Looking For
War jitters is the overriding theme of the day, as Hans Blix gave his report
before the United Nations urging more inspection time. Tomorrow night we have
the State of The Union address. And don’t forget the two-day Fed meeting that
starts tomorrow. Lots of reasons to be careful in this environment. Colin
Powell is speaking at 3:00 PM today.
We’ve just completed a countertrend rally off the lows, and I would expect
a re-test of these lows shortly. The bias today remains down.
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At the same time, the XAU is rallying off its .618 and may be headed higher.
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Bonds are selling off as well. Sales of existing homes rose about 5 percent
in December.
In a word, trade with the trend and maintain a downside bias for today.
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Have a good afternoon,
Brice
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