What continues to make me very edgy is the concerted effort of the business media (CNBC) to talk up the market. The funny thing was not matter how many times they said oil and gold had turned and the commodity bubble was over virtually all of my commodity and energy plays were up. Have we turned a corner yes, it seems so the latest FED action is more targeted to the problems at hand ,,but the road to recovery can be littered with failed rescue attempts . The fact of the matter is the real estate bottom is yet to be seen.
All this brings little joy to my eyes because the bigger picture still suggests higher inflation, higher commodity prices, bad government, higher taxes, protectionism, and more onerous regulation. I am still waiting for the jimmy carter resurrection and with it those failed foolish policies of the past will bring about exactly the same results in the present. The scary thing is that everyone knows it and yet the move toward collectivism seems unstoppable.
So for now I would suggest using any sell off in commodities, metals, ag and energy as long term buying opportunities and keep looking toward financials for short term and intermediate term longs and shorts.
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