I have no confidence in yesterday's rally. Chairman Bernanke did a great job of talking up the markets yesterday, but talk is not a catalyst that will last. I am searching for a real catalyst that will send this market higher. Bernanke's call of economic recovery by the end of this year is more aggressive than my gold call. Let me ask those deflationists this question. "If Bernanke is right and we do recover that fast what happens to your deflation scenario? THERE IS NO WAY WE CAN RECOVER THAT FAST WITHOUT INFLATION---MASSIVE INFLATION.
I got hammered in SRS yesterday and will keep a watchful eye on it today. I think we ultimately head lower, but would not be surprised if this rally continued again today. Remember we have been going down for a while. A DEAD CAT WILL BOUNCE.
I will keep my blog short today and issue this challenge. If you believe in a catalyst that will move this market higher---please detail it in the comment section and lets have some healthy debate. We know that learning from others thoughts is the best way for traders to be successful.
Congresspeople are already talking about the need for more spending and people are give me grief over my gold call.
Wednesday, February 25, 2009
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