Spent the last two days meeting with companies, financiers, financial advisors, etc. In over twenty years in and around the junior resource market, I’ve never seen more gloom and lack of any real optimism among industry players. There’s little doubt that severe damage has occurred and there will be no quick fixes. I’ll discuss this more in the next couple of weeks.

The U.S. stock market is simply correcting an extremely oversold condition while extremely bearish economic numbers continue to pour out. I would love the DJIA to rally back towards 10,400 as it would be a gift to go short again, but I suspect this bear market rally may top out as early as next week.

I’m concern about gold. Despite strong Asian and European buying, gold falls sharply on the Comex, especially after London closes. We can speculate that a group or groups is influencing the downside but we’re going to have to hold $700 and get back above $800 to turn the technical picture bullish again. A top again in the U.S. Dollar could help the bullish cause so next week’s trading needs to be watched closely.

The U.S. elections next week are all but certain to effect the outlook for all U.S. markets. I’ll discuss what I see the ramifications may be after the election.

Speak to you again on Monday

God Bless,

Peter

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Posted in All Posts Exploration Shares Gold Mining Shares Precious Metals U.S. Economy US Dollar US Stocks by Peter Grandich