Bobby Baklava

Tuesday Outlook: Commodities, Emerging Markets

Mr. Fry your comments and charts are excellent. I completely agree with your cash position currently, as the VIX still stays above 50.

I would like to say a few comments about Gold, (GLD) and its strong downward swing on Friday. The G7 summit which was held over the weekend, (usually the weekend is a good time to do things when people aren't paying attention), had a large part in the sell-off and was a strong sign for the equity market rally globally today.

Gold hit a high ot 910 dollars an ounce the same week, and then plunged suddenly of Friday. The market predicts future events, but with a commodity like gold, global leaders dumped their position a day early to reallocate their assets in equities.

Now, some might contend that today's rally was caused by low volume and bond market holiday. However, how would that explain the explosive rally in asian and other global markets.

I am not predicting a bottom either but I am predicting an upward movement towards the top of a double bottom hill. If the libor rate comes down and Apple has some innovative new laptops to offer the market might take off. Obviously there are many other factors but I believe the sell off in gold was a early sign that global financial leaders knew of the results of th G7 summit ( such as the US annoucment of federally buying preferred shares of several large banks - financial socialism - aka. overreaction).

Expect a uptrend hitting resistance for the DIA at 11000, and then a reversal before we get out of this mess. I have NO idea what the time frame is.