An Unchanged Week For Stocks

With fairly considerable intra-week volatility. Cash VIX highs around 21.25 and lows around 15.50.

Once again......the Buy the Dip Crowd wins out. The S&Ps tested the 100 day moving average. The DJIA actually tested the (more important) 200 day moving average. The RUT and Nasdaq bounce off their 50 day moving averages.

Energies, Metals, and Grains were under fairly considerable pressure this week. Brent Crude and the products outperformed. The Dec Brent v. WTI spread traded out to just over $9.00 wide and is settling around $8.40. The Gasoline crack spread again traded down to $6.00 and bounced up to $11.25. Every 1 point move in those spreads = $1,000. Interesting things going on in the Energies.

Natural gas did very well but may be approaching resistance. If you've been long, I would consider flattening positions.

Finally, a broader perspective shows US equities vastly outperforming other asset classes. Gold (and Metals generally) continue to lag in the low/no inflation, slow growth world. European equities, Energy and high yield bonds have "worked" to varying degrees. Emerging market equities are well off mid year lows.

Silver, a market I've followed closely for many years, has been coiling tightly for months now. In my estimation, we're approaching a breakout in that market and as anyone who's held a position in Silver knows - When it moves, it has a tendency to do so with velocity.

And now some random facts for your weekend:

10/11/1869 - Thomas Edison filed for a patent on his first invention. The electric machine was used for counting votes for the US Congress, however the Congress did not buy it.

10/11/1968 - During a Beatles recording session at Abbey Road six saxophonists recorded parts for 'Savoy Truffle' for the forthcoming White Album. George Harrison distorted the saxophones to get the desired sound.

10/11/1975 - "Saturday Night Live" was broadcast for the first time. George Carlin was the guest host.

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