Banks Seeing `Conflicting Headwinds': Purves

Fargo, bank of america -- they have a lot of conflicting headwinds.

If you look at the charts, jpmorgan, it does look ominous, maybe telling bears to start loading up to crack 350 on the season.

-- through 50 on the season.

How do you have a broader spx rally -- without a financials?

That is one of the signals i am looking for.

Flex the king at the financials and the other sectors in the s&p. looking at correlations between the s&p and groups within it.

Financials make up 16% of the index.

Information technology is now the largest, 18%. if you look at whether they move in tandem, industrials are the most closely correlated with movement and the s&p over the last five years.

Almost one to one.

Consumer discretionary, very close as well.

Then the financials.

The more defensive groups are least correlated.

Well we are looking out for earnings season, looking for the biggest growth and earnings -- in earnings from the industrials and discretionary companies.

Financials are forecast to show a drop of about 1.5%. would you agree with that?

Those are fair points.

Some of these industrial companies, steel, even in that sector you can see topping patterns starting to show.

You have to be careful with a lot of these bounces and key industrials.

There is some opportunity in the shutdown, in gold.

Scarlet is looking at the case for gold.

The various -- teh bheb bearish case.

The weaker dollar has failed to give gold a boost, equity markets have taken away the need to rush to safe havens.

Demand in china, one of the biggest consumers and goal.

Gold will hold and name -- in a 1257 range.

Why do you think gold will rise?

If you look at the dxy, you saw a steady downtrend concurrent with the rise in gold . earlier this year, when the dollar started doing well against the euro and other currencies, that was one of the key pressure points on gold.

Lately what we have seen is a reversal.

If you look at the dxy, what used to the support may now be resistance off of the june lows.

That will help gold.

Gold, against the backdrop of some sense of tapering coming out over the next months and higher real rates, it is not 2010. thank you for joining us.

Chief global strategist at wheaton and company.

The fire that cut more than $1 billion off of tesla's market cap.

Growing pains at twitter.

A plan to expand.

Stay "in the loop."