The DOW has entered a bear market anticipating a recession. In fact we had a very weak recovery after the last recession. As deflation continues and the FED promises more rises in interest rates, the bear market has a long way to go. How long? Probably 11,500, but opinions vary. The FED now sees that their effort of ultra low interest rates had failed to stimulate the economy so now their attention shifts to preserve the Dollar by raising interest rates. That will exaggerate the slump.
How about O'Bungle's State of the Union praising the recovery? I am not going to comment so my remarks will not be censored.
The Market is now beginning to anticipate a turn in commodities. Gold is beginning to rise and oil has attempted a rally. Oil is expected to hit bottom in March.
Here is the action in gold:
Today's gold price is up over 8 Dollars.
Here again is what Larry expects for the gold price.
Gold did not have a sharp bottom but a double bottom. It is now trying to break above the 1,100 resistance.
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