USUALLY THESE "RALLIES ABOUT NOTHING" ARE SHORT LIVED...
MOSTLY IT'S BIG PLAYERS OR MARKET MASTERS SHIFTING MONEY AROUND; BEFORE THE SUMMER DOLDRUMS HIT.
SOME OF THE REASONING IS HARD TO FOLLOW...LIKE THE SO CALLED "DROP" IN OIL TODAY...
YES BUT, FROM A NEARLY STRAIGHT UP RALLY OVER THE LAST FEW WEEKS...!
SO NOTHING FUNDAMENTAL HAS REALLY CHANGED...IF ANYTHING THE FUNDAMENTALS ARE GETTING WORSE BY THE WEEK!
BUT THE MARKET IS LIKE A SHARK...IT HAS TO KEEP MOVING...
THE REASONS FOR THE MOVES ARE NOT RELEVANT...AND THEY SHOULD NEVER BE TAKEN SERIOUSLY.
THE MARKET JUST HAS TO FIND SOME REASON TO KEEP MOVING...AND CHURNING OUT COMMISSION SALES AND DRAWING IN MORE RETAIL SUCKERS...
THE REAL DATA TO WATCH ARE THE DOLLAR, GOLD AND OIL...AND THEIR LONG TERM TRENDS...
LIKELY THE MARKET MASTERS DON'T WANT A REPEAT OF LAST YEAR'S BIG SPRING GOLD RALLY...WHICH THE RETAIL CROWDED JUMPED INTO...MUCH TO THE EMBARASSMENT OF THE FED...
SIMPLY PUT, THE SUCKERS MUST NEVER, NEVER, NEVER BE "ALLOWED" TO THINK THAT GOLD IS "FOR THEM..."
A MASSIVE RUSH TO GOLD BY THE RETAIL SUCKERS...WOULD PUT THE FED IS A FINE MESS!
RATES WOULD HAVE TO SOAR TO SAVE THE DOLLAR AND FLUSH THE SUCKERS OUT OF THEIR GOLD POSITIONS...THAT SHOULD BE AVOIDED THIS YEAR.
BUT THE UNDERLYING WEAKNESS IN THE DOLLAR IS SO OBVIOUS THAT...THE HEDGE FUNDS ARE SALIVATING AFTER GOLD...AND THE RETAIL SUCKERS ARE LIKEY TO FOLLOW THE MONEY...YET AGAIN THIS SPRING...
POOR BERNANKE...THE INEVITABLE AND THE INTOLERABLE ARE ABOUT TO MEET...
