Wednesday October 23, 2013 08:43Yes

Wednesday October 23, 2013 08:43

Yesterday’s weak employment report finally convinced the “tapering crowd” that, just maybe, the “T” event will be pushed to 2014. Talk about needing to be hit over the head with a hammer. The result of the weak numbers encouraged all the hidden gold bugs to again shout from their rooftops that $2,500 was now around the corner. My preference is to continue to look for constructive baby steps, and the take out of $1,325 was a good beginning after our $1,312 level held and our target at $1,355 is within sight. The weakness back to the low $1,330’s overnight is a bit disconcerting for me, as it may indicate weak momentum, but will hold the course with a firm stop at $1,322. In the very short term - i.e. the next six weeks - the markets influence will be geared towards US dollar movement and equity values. If this market cannot sustain momentum and manage at least a serious assault on the $1,355 level, I suspect the market will drift lower into the next “crisis”, now some 90 days away.