Right after we had finished our 1 PM update, the President came on TV and indicated that the gang of six had come to some magical debt agreement. That was all that was needed to rally the equity markets and push down the price of gold and silver. Let me just say this, it's not a done deal until it's a done deal and I don't think this deal will get done.
The action in gold and silver today and the fact that they are both higher on the day right now, indicates that yesterday was probably a buying opportunity in both of these metals.
Let's just recap what has really happened. Nothing has changed, we still have major, major debt problems ahead of us. As I mentioned in yesterday's 1 PM update, I wanted to see how the markets closed for the day. I think today is going to be even more important, as we are in the middle of the trading week and we still have the potential for a lot more news to come out. Last week we closed at 1316 on the S&P 500 and for the month we closed around 1320. We'll be watching to see if the S&P 500 will keep its upward momentum or have another push down to the 1300 level.
