Fed Does It Again, Proving They Are Clueless
Wednesday the Fed announced adecision on interest rates and once again there was no surprise; they didnothing. The equity markets were wild with a 300-point trading range on heavyvolume and volatility. As history has proven, the Fed has no idea of what to donext; in other words, they are clueless.
The metals also were volatile,with gold trading in a $16 range between $1,335 and $1,351, closing near thehigh. Silver, like gold, was volatile by trading in a 20-cent range. Thismorning, both have given up the gains they had on Wednesday and are lookingvery weak.
We remain long-term bullish butshort-term bearish and are expecting the selling to accelerate. Keep an eye onWednesday's lows; if those get taken out, the metals should move down to theirnext support level -- gold at $1,330 and silver at $17. Look for extremevolatility and lower prices.
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