The markets reacted positively to the big Republican win as once again the Dow Utilities led the way gaining over 2%. The market internals were positive with the new all time highs in the Dow Industrials and S&P 500. The ADP Employment report was also a plus for the market ahead of the US jobs report on Friday.
The precious metals were hit hard with the Market Vectors Gold Miners (GDX) plunging another 2.6% on double the average daily volume. As I reviewed yesterday, the monthly and weekly analysis on the precious metals, as well as crude oil, continues to favor lower prices.
Crude oil did bounce yesterday as inventories did not increase as much as expected. Overnight news of attacks on Libya’s oil fields have helped to firm prices and the Philadelphia Oil Service Index was up 2.6% on Wednesday.
Another big winner was the Dow Jones Coal Index gaining 4.17% on the day. This index is down almost 20% for the year with some individual stocks down much more. They gained on the assumption that, with the Republican control of both houses, it will create a friendlier environment for the coal industry, but what do the charts say?
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