Dave Fry's Market Outlook for Wednesday

The markets are drifting lower on moderate volume as investors mark time while awaiting the employment report (Friday) and Fed (next Tuesday).

If there was any news Tuesday it came from gold, which broke, for the day anyway, its link with crude oil prices. A combination of a resumption in the dollar’s decline and a miners’ strike in South Africa fueled gold’s rise.

“Death by a thousand cuts”? Well, it’s only been a few days of this right? Things won’t become clear until after next Tuesday. Then bulls, if things go their way, may have the Santa Claus rally after all. But, even with that, my money is on January and how we’ll fare, since that should be the real deal.

In the meantime we’re just marking time.

Disclosure: Among other issues, the ETF Digest maintains positions in: IEF, USO, GLD, UDN, DBC and DBA.