Market Comment

Back in July/06, when I called for an unusual seasonal market recovery into the fall, I didn't realize that markets were foreshadowing a Democratic sweep of the U.S. Congress and Senate. Markets have a habit of recovering when the Democrats win.

More recently, I have predicted a possible setback in the price of Gold. If money was parked in Gold while the Republicans were in charge, it should now flood back into U.S. markets, leaving Gold in the dust - so my Gold call may also be hinged to the Democratic election success.

Shortly after Mr. Bush was elected (yr 2000), a huge wave of selling hit the U.S. Dollar, and the downside pressure did not let up for a full five years. The extent of this debacle leaves no question as to who is in charge on Wall Street. Now my models are suggesting the potential for a sustained U.S. Dollar recovery in the offing - once again, as I see it, tied to the outcome of mid-term elections.

If I'm right about this, my market call, my Gold call, and my U.S. Dollar call, may all turn out to have been proxies for the outcome of the recent elections in the States. It's rare, but every once in awhile I have the feeling that I might be getting a glimpse of the big picture.