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October 21, 2005

Don't leave the office early today, Fri., Oct. 21, 2005, 11:44 AM

It might be a bright sunny Fall day in October, but I would not advise leaving the office early. This afternoon could see some real fireworks in markets.

Dow 10220 and down "60.

Fast market.

Danger.

Gold up +$0.70. It might be a good time to average down in some of the gold stocks.

Posted by Posted by Bill Cara on October 21, 2005 11:44:07 AM | Category: Cara Today in the Market

Discourse

Over the past year there have been a few bond bulls pointing to energy as a drag on economic growth and a limiting factor on the Fed's capability to raise the long end. More recently Fed governors have mentioned the energy 'drag'. If these folks were correct, doesn't that imply that a drop in energy, even from elevated levels becomes a stimulus? If so I don't see a reason for bonds to rally far as that stimulus might require more aggressive action from the Fed.

Posted by: stockman [TypeKey Profile Page] at October 21, 2005 12:08 PM [link]