It seems that what we have been witnessing is akin
to packs of wolves attacking the weak of a herd of Buffalo. As time
passed and the moves to the downside have cleared the way for the
strong. Now with a new day dawning, with what is expected this day to be
the first Federal Reserve rate hike, the wolves have
backed off and the herd is getting stronger. In the pack palladium led
the way yesterday on the news of strong European auto sales and platinum
today is playing catch up as the market is beginning to realize that
the Volkswagen fiasco is more brand focused
and not industry wide. Today’s Housing Starts were strong though
Capacity Utilization was weak. Mixed numbers that more than likely will
not dissuade the Fed from today’s expected action. The herd we call the
precious metals group seems to be getting ready
to stampede as the wolves/shorts are getting out of the way. After
today’s news if it is as expected, it would not surprise me if the herd
finds greener pastures ahead.
