Taking the pulse of the Markets.

It's called VOLATILITY. Wild swings in the price of stock and even commodities. This usually occurs when trends are changing. The last number was a 400 point increase in the DJI. So, do we now look to a rise in stock prices? I do not think so. The economic conditions that caused stocks to go into a bear market have not changed (energy stocks are down, bankruptcies increasing and the economy slowed). So, what has changed to cause a stock price eruption? What has changed is that the FED has suspended its proposed rate hikes, at least for the time being.

What can we look for in the Markets?

Larry now pegs the drop in the DJI at 13,935 as the lowest. Of course, you understand that this number is a point on his graphics.

Have the gold and silver markets confirmed the breakout? Not yet. Gold needs to close above 1,187 and silver above 15.46. How about oil? Oil is near 34 and is slowly rising. At the rate it is going, it will reach to between 40 and 50 dollars/bbl.

The US dollar is also volatile with an upward bias. A strong dollar keeps commodity prices low, but the deflationary environment puts a damper on commodity prices. Will the FED relent and allow gold prices to rise to end the deflationary environment? That is the big question.