The Fear Trade

I have contended that this was nothing more than a Bear Market Rally, but I am not ready to sell short with both barrels yet. I am going to play wait and see today. I do think we are seeing fear removed from the market and at some point gold will be a buy as an inflation play--but for now I am content to watch as the fear premium comes out of the "yellow metal". I am long RHT, AMN, and DMND but stand ready to close all of those if necessary today. This market is making me believe in tight stops.

I saw Marc Faber on television last night and he was very iffy as to oils next move--he said it could hit $35 or it could hit $70. We are working to have him on our show. Tonight we have Bob Lang of Big Trends. Bob is an options player and this should be an excellent interview.

I am truly in wait and see mode so I will have more to say with the interview tonight.