Monday October 14, 2013 08:41
As we Canadians stuff our turkey’s today the metaphor hangs enticingly. The markets fully assumed a debt ceiling compromise would occur over the weekend, and traders aggressively sold the metals, on Friday. Funds flowed into the equities with the Dow posting 400 points to the upside on the last two trading sessions of the week. All good with the world except nothing got done. This scenario was one we cautioned about, suggesting covering positions on a just-in-case outcome. The markets are open today but extremely thin, with the Canadian closure and the US celebrating Columbus Day. The non-deal has already added 2% to the metals and the Dow is indicating an opening of 120 lower, as I write. I have to believe that a solution is forthcoming, which will continue to add pressure to the metals, but the trade is short here and wants a solution quickly.