The market ignored the Fed minutes yesterday, but in overseas markets, various currencies reacted last night. The Fed's skepticism about fiscal policy is causing a softening in sentiment today, and pressure on the dollar. The dollar is back to mid-December levels now -- and that is also helping bonds to rally. The iShares 20+ Year Treasury Bond ETF (TLT) is back to where it was in November.
Yesterday, the biotechnology names were leading, but they failed to generate sustained momentum today. Steels followed through, but it is gold and silver that are the big winners. I'd like to add some miners, but I'm mainly focused on McEwen Mining (MUX) .
So far I've made no new buys, other than a small ProShares UltraShort Russell2000 (TWM) position. I'm not a raging bear, but I'm trying to stay highly reactive and in view of how frothy it has been the last couple days, I want to protect some gains.
One of my resolutions for this year is to trade bigger and more aggressively. That means moving faster as conditions change. There isn't much going on so far today, but I'm working on positioning for the next major move. Right now there are signs of rolling over, and I'm going to focus on that to a great degree. I'll also be looking for some more precious metals plays as the day progresses.
