Gold & Bonds Look Ready to Rally

As emerging market worries weigh on stocks, gold and bonds look ready to rally. A quick market check just before the Fed decision, with Kenny Polcari of O’Neil Securities, and Abigail Doolittle of Peak Theories.

Transcript:
The charts right now are suggesting asset class confusion and conflict. On the one hand, gold and bonds look ready to rally. I think we will see the ten year move down to 2.5% and I think we could see gold rally up significantly. on the other hand, stocks look like they’re about to sell off.

I think we are really seeing a repricing of risk this year which suggests further volatility ahead. How it actually plays into fed policy, I guess we will see. I think investors want to strap on their seat belts here. You finally got the pullback you have been kind of an outlier on. We did get that pullback you were looking for.

I think that it’s probably going to continue. again, we are seeing a repricing of risk, seeing investors re-evaluate where they were in 2013, coming back off the risk curve. we are seeing some of the repercussions, the volatility from the fed’s highly accommodative policy, the other central banks. as a result, we are seeing stocks sell off and gold and bonds rally.

We probably see that continuing here. You’re not sure they will taper, either. I don’t think they will. I think the market today is expecting they will hear that. i don’t think they are going to. I think at 2:00 if they say that they will hold the status quo, I think you will see the market turn around very quickly and rally right back.

I think this move today is just that anticipation, they are trying to price in that move ahead of the move. I think they will be surprised. What happens if they say they will taper given the backdrop of emerging markets? Then you see a little more of a down push 1765 i think is the level you will find some support.

I think a little bit, another ten points down, then I think it finds some real natural buy interest at that level. I don’t know. I will be interested to see if support does hold there. I wouldn’t be surprised to see the intraday and s&p test at 1704 go below 1700 to 1685, somewhere in there. over a period of a couple weeks, I would imagine, not today. Yes.

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» Read our article: Why Silver is Going Up Today?

» Read our article: Why Gold is Going Up Today?

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