The Stock Market Conundrum

…is driving me nuts.  Anyone else out there feeling the same way?  It appears to be trying for a double bottom (factoring in last Friday’s disaster).  This would be a good thing according to the die hard chart guys.  Truly, if we can rally into the end of the day (the Dow and S&P averages are already up off their lows), this would be a good sign for the near term, maybe into next year …  who knows.

My general opinion is that even if we do rally today and into the rest of the year (even early next year) we are still in for a nasty ride, this is not EVEN going to be the end of this bear market.

There is SO MUCH UNCERTAINTY going on that how can anyone know what is going to happen.  Think about it: All of this money that is being injected by central banks, election year politicking in the US, mass carnage in investment banks (who no longer exist) and hedge funds (who may soon cease to exist), the latter deleveraging ANYTHING of value, including paper contracts on precious metals, causing them to tank in a time where trying to buy the actual bullion is next to impossible and if you can, you pay a premium of 25-33% above the spot market price because of the paper deleveraging).

Oh an oil is HALF the per barrell price it hit at its peak … WHY is GAS not HALF it’s peak of $4.50 or whatever it hit?

Oh and the real estate markets - where our troubles began - still in the toilet.

I am buried on a few junior mining stocks but overall holding up OK.  I really want to buy some thing because everything is so damn cheap.  HOWEVER, this is the trap that most people have been falling into for the last however long number of months ….  we just dont know if this is the bottom.  For the short or the long term.

Stay in cash.  Buy physical gold and silver if you can find it at a decent price.

Hold on to your shorts …  and I’m not talking about your option puts … your REAL shorts.