U.S. stocks closed lower again Tuesday, but in less volatile and quieter trade, as Treasury Secretary Geithner finally made another appearance, this time in front of the House Banking committee. Fed Chairman Bernanke spoke in front of a Senate panel as well. The overall reaction in the financial markets was muted. Geithner was making the case for the Obama budget, but he was mainly preaching to the choir.
In other markets, the Dollar continued a bit higher, while the precious metals sold off sharply, as traders in Gold and Silver are all trying to exit through the same door. Gold has pulled back nearly $100 in just over a week. With the Dollar trading higher, there is no real reason for most to own Gold at this point. Whether this is a pullback within a long term uptrend has yet to be determined. A significant breakout above $1,000 is likely what is needed for that market to go much higher.
Watch out for the ADP employment survey on Wednesday.
Scott Cole
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