Tonight's post will be a brief and chartless one due partly to the lack of significant action and more pertinently, to my waning consciousness at this late hour. If you will pull up your daily S&P 500 chart you will note two features. The first is the paltry volume under the last three days of upside action. The second is that price is once again kissing the underside of the pivot defined by the November high. Put these two facts together, and you've got a recipe for near-term weakness. Of course, the launch off SPX 875 began with weak volume, so make of it what you will.
There seems to be quite a bit of nervousness floating around about the prospects for precious metals at this juncture, and a few bloggers are even suggesting taking short lines. Pause a moment to digest the big picture: We are entering the seasonally strong months for gold and silver. All the metals, especially gold and platinum, are sporting bullish setups. We have a massive amount of stimulus set to come out of Washington in early 2010. The PMs are going to start discounting this stimulus a few months ahead of time, and those months happen to be the aforementioned seasonally strong ones. Does anyone really want to fight such odds? Not I, says me.