Wednesday, August 24, 2011 4:10PM – Excellent Day for Stocks, Gold Down, Durable Goods OK

Stocks were up strongly in the US and Europe. The S&P 500 finished up 1.3%. Europe was up more, 1.5%- 2.6%. Asia closed earlier and was down.

The only gripe with the rally today was that volume was fairly low. Remember too that 3 weeks ago we had a sharp 3-day rally that was all given back the next week. That said, so far this rally looks better than that one.

Gold continues its sharp pullback, down about 4%, which as I wrote before, it needed. Gold may decline another 5-10%, perhaps a little more. The long-term story for gold is still intact and I may add to our gold.

Bonds had a rough day as money apparently went to stocks.

I wouldn’t expect the market to move too much tomorrow because it is waiting for Ben Bernanke to speak at Jackson Hole Friday PM.

On the good durable goods report that turned the market around just before it opened today, if it had not been for a great month for aircraft orders which are notoriously volatile and for autos, which are bouncing back after the Japanese earthquake caused supply disruptions, the durable goods would have actually been much worse than expected.

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