Stocks Continue To Underperform Gold
While the biggest near-term catalyst for the market will be the imminent earnings release from AAPL, which itself defines the market due to its massive weighing in various indices, stocks once again fizzled when priced in gold. The S&P for October continues to underperform gold, and today closed unchanged priced in non-fiat, which merely reaffirms that the loss in dollar purchasing power is not being compensated by the stock bubble. And yes, this happened even though it was a POMO day. As we have speculated, gold has become nothing less than a natural short hedge to stocks: one, which, however unlike traditional shorts, has no upside limit. As long as retail refuses to throw its hands up and join the ponzi orgy, the relative underperformance of stocks will continue. In the meantime, there is no POMO tomorrow.
Update: Post IBM earnings, ES is now largely red.