There are no changes to my market positions today (still out of all markets).
The stalemate in Washington appears to be breaking as talks finally begin on the debt ceiling and the government shutdown. As expected, this glimmer of hope for a resolution to the fiscal crisis is sparking a vigorous rally on Wall Street, but, as with all sudden and emotionally driven rallies, it should be viewed with caution. Despite the rally, momentum in the DOW chart is remaining strongly bearish.
The sudden optimism in the broad stock market is sending the price of gold and silver lower today, and although silver seems to be holding above $21, gold has broken below $1300 and is closing today near $1270. We may be seeing the bearish scenario I described in Wednesday's blog unfolding here, and, if so, we will be looking to go long at the final bottom of the correction.