Equities Rally, Bonds Back Off in Anticipation
by AL MARTIN (INSIDER INTELLIGENCE.COM)
...that Peaches 'N' Cream Trucks Will Arrive Before the Deadline
(10-13-13) We saw sharp spikes in the spoos in Thursday and Friday's trade, which we refused to trade on the long side. We are short the spoos again from the close at 1699.50 in Friday‚Äôs session. If nothing concrete is done over this weekend, spoos will move lower on Monday.
Bonds -- also under pressure Friday for the same reasoning. However Bonds too will rally in Monday's session if the Senate is unable to produce any concrete results.
The Dec. Dollar Index continues to hold the 80.00 level. We are now beginning to see rallies in the Euros turned back. We continue to short the Euros and did so in Thursday's session on our standing order at 1.3575 and were able to take 40 ticks out of the trade in Friday's session. We continue to look to short both the Euros and the Pounds on rallies.
Dec. Gold saw continuing liquidation in late week action based on the concept that the Peaches 'n' Cream trucks were coming in Washington.