Top Day

Markets:

Confidence in the GBP continues to weaken in the wake of the recent "flash crash". Global equity markets continue their orderly rally. china and Japan are back after holidays this week. Banks continue to weigh down markets whiled mining shares are supportive. It is Columbus day in the USA, and S&P futures are slightly higher. The Bloomberg chart is a bit misleading, as the GBP did recover almost all losses post the selloff, but has been dead in the water since.

China is Back:

After a Golden Week holiday, Chinese markets are open with the Shanghai composite adding 1.5%. Their return should mark an increase in retail Gold demand as well if history has anything to say about it.

Gold:

Gold is up $10 this morning with GCZ trading $1262 last. We commented extensively on gold's likely next move here in our technical brief last night titled: Gold Trade: Long above $1250 with $1300 Target- here's why

interactive chart HERE

Goldman Sachs

GS is warning of a major selloff in stocks in both the EU and the USA. They cite high valuations as the culprit. More on this in a subsequent post with our own assessment. For now here is our own basis for worry.

Double Inside Weeks are historically a bad sign for the S&P

Debate

Trump did well compared to his previous performance. However the Mexican Peso which has had a high correlation with polls rallied to 1 month highs post the debate, up 1.3%. If this is any indication, Trump focused performance may have slowed the bleed, but did not stop it. Here is what the stock market thinks of a President's influence historically.

The Stock market does what it does, no matter who the President is.

Good Luck

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