Welcome back my friends, to the show that never ends. That line from Emerson, Lake & Palmer’s epic tune, Karn Evil 9, is one I am fond of using to describe this market. Certainly, after the action on Wednesday and Thursday leading into Friday, it remains an appropriate way to characterize the current environment.
On Wednesday, the market was seemingly on its deathbed until a benign Consumer Price Index report on Friday turned the bearish circus into a bullish festival. Fortunately, the only area where we were already positioned on the long side over a week ago was a good place to be on Thursday as the dwindling CPI kept the rockets firing in the precious metals space.