Dow Falls Over 200 points- Worst Day Since May- Where to Next?

Well what a week,  more selling sentiment in the markets, dollar was a little up, historical presidential election just weeks away and markets aren't weathering well with home sales taking a hit.  There is allot of fear we could see a steep move down even further in the Euro if we can't hold the 1.2652 level.  Technicals are mixed really from my point of view- we definitely could head back up but the sentiment in the market isn't really good and I believe allot more will be seen after this election is over.  I believe if Romey is elected we could see some rallying in the Markets but if Obama is re-elected we could see historic decline,  like back to 2008 levels added with much fear in the market.

In the wake of Obamacare more companies like Olive Garden, Red Lobster have recently said they'll be letting go of a large amount of full time employees and hiring more part time employees to hopefully survive the onslaught of higher fees and taxation to continue doing business.  I believe this will become the norm with many employers with ObamCare being fully instituted.

Gold and Silver have fallen with Gold now at $1722.65 and from what I see the short players are setting up and looking to drive the price down with taking some quick profits.  Gold and Silver will always be a strong play as a hedge from the fall out of the Dollar and I believe some continued decline in the markets if we don't see some real fiscal change. 

(As a side note China continues to buy barrels of Crude with the Yuan dollar-  there currency of choice.  Also, the Yuan had a great rally this week hitting record highs with much speculation if Beijing is  behind the big move . read more here: http://www.reuters.com/article/2012/10/19/us-china-yuan-idUSBRE89I0J320121019

but ultimately this is a effort to eventually get out of the Dollar entirely.  This is nothing new, but I believe as America deepens itself into more debt that our GDP can't even cover the interest payments on-  Lenders like China will eventually have to call us on our debts that its time to pay up or there will be a significant move to leave the almighty Dollar and make their currency the next world currency.)

Have a great weekend everyone and get some rest!

-david