After the past couple of weeks of the market being beaten down due to Middle East tensions, the fact that things have simmered down is all that it took to cause a rally. I welcome the rally, and I hope it’s a huge one, but I’ve got to say a couple of things:
(a) I fear the rally going to take a long while, which is a drag for an impatient chap like me sitting on buying power
(b) I’m surprised how utterly FEEBLE the rally is right now, with just a little bounce taking place, indistinguishable from all the others that formed during the midst of the selloff itself. It’s pathetic, bulls!
One clear way to see how geopolitical tensions have rushed out of the room is the crude oil chart. This sucker had roared higher, but every single penny of tension is gone now. The past few weeks have simply been blotted out.
Although equity futures are only inching a lame half percentage point, precious metals are getting torched. This will be the latest thing I can castigate myself about since I got out of my GDX (NYSE:GDX) puts late last week.
As I’m typing this, /GC is down more than $60 per ounce, offering yet another example of how quickly have stopped worrying about Israel, Iran, or anywhere in between.