Today, fresh doubts about whether the new stimulus/spending bill will work coupled with stronger doubts about Treasury Secretary Geithner's capability to resolve the crisis is causing another flight from stocks and into gold and treasuries. The treasury auction at 1:00 pm EST was well bid, but only at a higher interest rate, which temporarily drove prices downward. The bottom in the treasury chart below reflected this dip at the time of the auction, shown as a hammer bottom candlestick pattern. However, renewed fear and uncertainty over the value of the spending bill quickly reversed the higher interest rates and fresh buying ensued. Scary times we live in!
Stocks -- investors fled for the exits. The bulls are running out of hope!
Gold -- breached $950/oz. today
Treasuries -- brief dip as investors demanded more interest, followed by fear-based buying
