IT IS ALL ABOUT STOCKS
Here we were yesterday plunging again until Bernanke's speech. Ironically the context of his speech was negative in that it indicated the economy was softer than the spin masters have been telling us it is. However, we got a moon shot rally? There are alot of ways you can look at this, and one of them is certainly that a futures buy program campaign by the PPT might have been launched right there. Based on what normally triggers these programs with institutions it is possible that could also have been at hand here, but the timing of this certain at the very least ought to raise an eyebrow or two.
The FED certainly has figured out what a dumb ass trader like I am has, the whole world is keying off US stock price movements. If they want to avoid deflation, they need to make stocks move up so everything else will. So far they have certainly accomplished a miracle in my opinion. If they can hold this here until the fall, the prospects for a republican takeover of the house and possibly the senate could generate a big stock market rally. They have to contain dips for about another month to get us into the seasonally bullish time zone. It is hard to bet against these guys, they are the house after all.
If for some reason we do get a sharp drop which it does not appear will happen now, I think it is a buying opportunity for a hold of several months for the average stock player. I may even take 100k or so and just do that with a few stocks. I hate tying up any money for that long, but this could be a 20 percenter or more in my view so I may do it.
Here are the other moves that I think are setup for this coming week:
Swiss Franc - continued rally
Gold - selling opportunity
DX - buying opportunity
EURO - selling opportunity
COTTON - shorting opportunity
SUGAR - selling opportunity
All of these are setups, not trades. This means that they are possibly in conditions that a move in those directions will happen. Entering the trades correctly is another matter, and I may not do any of those, but they are what I am primarily watching.