Nov 11th 2014 – The Leprechauns Must Be Flooding the Gold Market

Gold and oil fall again.  Falling Oil prices are great for consumers like us.  A few weeks ago, the market dip was being blamed on the fall in oil, however, now it seems that it is seen as a positive for holiday spending.  Anything that reduces the cost of living and saves money at the pump is a good thing.

I think gold’s issue right now is a basic supply and demand problem.  There is just too much of it in circulation, it is continually mined, yet stays in circulation, never gets used up.  I am no gold expert, but that’s my hypothesis, so that is why I think it has lost its shine…and no I don’t believe in Leprechauns, but I like this cartoon!

“There is no catalyst that you can put your arms around at this time that could trigger a meaningful pullback” said one market analyst today.  I am inclined to agree.

This slow grind higher is rather strange, but there is no need for it to fall over just yet.  All news seems to be good news in terms of earnings.  In fact Margins and earnings are at record levels with unemployment stats coming down.  All bodes well for a continuation.  Of course at some point there has to be a profit taking dip, I just don’t know when…

Market News:

U.S. stocks stepped modestly higher on Monday, with health-care companies leading the charge that again lifted benchmarks to records, as investors tracked corporate results as the earnings season starts to wind down.

Time Warner Cable, Comcast and Cablevision Systems declined after President Barack Obama urged an “explicit ban on paid prioritization” to protect the open internet, saying in a statement that there should not be any slowing of internet content. Time Warner and Comcast both sell broadband service.

Toppling intraday and closing records set only a session ago, the Dow Jones Industrial Average ended up 39.81 points, or 0.23 percent, at 17,613.74 points, with Nike leading blue-chip gains.

Also hitting an all-time high, the S&P 500 rose 0.31 percent, or 6.34 points, to 2,038.26, with health care advancing the most and energy the leading laggard among its 10 major industry groups.

The Nasdaq closed up 19.08 points, or 0.41 percent, at 4,651.62.

On the New York Mercantile Exchange, crude-oil futures for December delivery dipped $1.25 to $77.40 a barrel, and the December gold contract dropped $10.00 to $1,159.80 an ounce.

News Sources:  CNN Money & CNBC