Gold stocks are approaching their 52 week lows...despite the fact that gold, the metal, is holding it's own...
The big drive down of commodities is THE STORY for the rest of this year...and it's really the sine qua non for the "rally" of late in over-priced equities...
But what has changed to cause commodities to drop...? The FED has quit raising rates...and will stay on hold until the dollar weakens again...perhaps next summer...?
The FED is pursuing a weak dollar policy even as commodities are weakening...and the dollar is going up! Hey maybe it's a "Zen thing?"
Much of what's happening today is in the catagory of the "Black Swan" event. It really can't be explained by macroeconomics... But it can be explained by Market Economics and the desire of DESPERATE ELITES to protect their positions...despite all odds being against them...and despite totally unsustainable long term prospects...
Proof? Just look at that Walmart rally yesterday...everyone knows Walmart is on the ropes as the consumer declines along with jobs, wages and the house bubble...
IRRATIONALITY RULES AGAIN...
But not forever...
Rationality always has a way of sneaking under the tent, and moving to the center eventually...
THIS IS A MARKET BASED RALLY...NOT AN ECONOMICS BASED RALLY.
