The dollar went against gold, traveling south with stocks in a series of gut-wrenching plunges. Nonetheless, the mainstream media seems predictably gloomy about whether gold can continue a two-week winning streak. The third and fourth weeks in October have often proven to be the most difficult of all for stocks … so time will tell. In the meantime, gold bugs have enjoyed a shiny October.
This Week’s Monetary and Industrial Trend
This week’s market action was all about stocks – as in a stock-market reversal. According to an AP Post, “US stocks rise sharply, capping off a roller-coaster week,” – the Dow had its second-best day of 2014. The article summarized it thusly:
The stock market had another turbulent session Friday, capping off one of the more eventful weeks on Wall Street in years. The Dow Jones industrial average soared more than 250 points following strong earnings from Morgan Stanley, General Electric and Textron as well as some encouraging U. S. economic reports. It was the latest big move for a market which, with a few exceptions, has been on a mostly downward track.
The upward move came after four weeks of declines, which included a Dow plunge of some 460 points, Wednesday. Friday presented the reverse scenario. Swings were said to involve worries over sustaining an upward economic path out of a six-year-old recession. Also, a survey by the University of Michigan presented a much higher consumer sentiment number, rising to 86.4, which was higher than consensus estimates and was the highest number since July 2007.
This post was published at The Daily Bell on October 18, 2014.
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