Tuesday October 08, 2013 08:35
I have run out of words, but, as billionaire Sam Zell said this morning, “it’s never too late for reality to overcome ideology." I certainly hope so. There are certainly talking points around this market - supply/demand fundamentals, narrow range pattern with wedge formations, continued Fed and global central bank easing - but all just wisps of chatter against the background of the ticking debt ceiling deadline. Traders are covering as they go, downing muscle relaxants as their heads stiffen up from shaking in disbelief. One positive suggestion of a settlement would take 2-5% off the metals in a heartbeat. Continued negative parlance will continue to create support with a higher drift bias. A debt default is a scenario I can’t fathom how to price.