WELL PROBABLY...!
AT LEAST UNTIL IT'S IMPOSSIBLE TO CONTINUE...
RIGHT NOW THE FED HAS GIVEN WALL STREET PERMISSION TO RALLY ON...AND RALLY HARD...ALL BASED ON THE PRINTING OF PAPER DOLLARS TO SUPPORT PAPER ASSETS...
BUT WILL IT WORK!! OF COURSE!!
ONLY LONGER TERM...IT'S JUST MORE OF THE SAME...
WE ARE BACK IN THE BUBBLE MINDSET...MOMENTUM TRADING RULES...
THE ONLY PROBLEM IS THAT THE MOMENTUM WILL LIKELY NOT LAST AS LONG...AND THE DOWNDRAFTS WILL BE GREATER...
WITH A NICE DECLINE IN GOLD ALREADY IN PLACE...AND WITH PERHAPS MORE TO COME...IT MIGHT BE TIME TO START AVERAGING INTO GOLD AGAIN...WITH AN EYE TO THE INEVITABLE LONGER TERM "MARCO" PROBLEMS THAT BOTH THE MARKETS AND THE DOLLAR FACE...
ALSO...THERE ARE REAL THREATS OF EXTREMELY BAD NEWS FROM MAJOR FINANCIAL PLAYERS THAT COULD "BREAK THE SPELL" VERY VERY FAST...!
ALL IT WOULD TAKE IS ONE MAJOR BANK OR HEDGE FUND FAILURE TO PUT THIS ENTIRE DOG AND PONY SHOW ON THE ROAD AGAIN...
IN SHORT...NOTHING HAS BEEN SOLVED BY THE FED OR ON WALL STREET... AND WHAT WE'VE SEE IS A NORMAL PULL BACK IN A LONG TERM BULL MARKET FOR COMMODITIES...THAT IS BEING BILLED AS A "HOSANNA MOMENT" FOR THE ENTIRE ECONOMY BY THE FED AND FRIENDS...
DON'T DRINK THE KOOL AID JUST YET...
BECAUSE THE "ILLUSION" OF SOMETHING LIKE A SOLUTION...WIDELY REPORTED IN THE MEDIA...BUT WITHOUT SPECIFICS OR VALID REASONS...IS ALL WE HAVE NOW...
PRAY FOR MORE DECLINES IN GOLD...AND AVERAGE IN FOR THE LONG TERM...
THE STREET HAS THESE BULL MARKET "EPISODES" NOW AND THEN...AND THE DECLINES IN THE COMMODITIES ARE ACTUCALLY A "GOOD THING" AND SHOW THAT COMMODITIES ARE A SERIOUS INVESTMENT NOW...
THE REAL SOLUTION IS.. RAISE RATES. DEFEND THE DOLLAR ... AND CRASH ASSETS DOWN TO WHERE THEY "SHOULD BE"...AND IT IS GOING TO HAPPEN NO MATTER WHAT THE FED DOES!
BUT, YEAH....WE AIN'T READY FOR THAT YET...
