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Relief Blip '10

|Includes: DIA, GDX, GDXJ, SPDR Gold Trust ETF (GLD), QQQ, SPY

Everybody happy? Well, here are more riddles for you...

The rally being expressed right now was expected - although I must admit yesterday's start put me on 'rut roh' alert, as it threatened the preferred scenario put forth in NFTRH86. Ah, but what is the rally? You know what it is; it is relief of unsustainable bi-polar sentiment swings. Going forward we will watch this pig for the next bearish phase now that it has gotten it together for Relief Blip '10.

Gold stocks have established themselves as leaders and here is the best part; NOT to the downside, but to the upside. Ah, but the precious metals cheering squads will get all whooped up once again and perhaps the time frame for the real play is not going to conform to their wishes. Still, the gold sector is very big picture bullish, unlike heading into 2008 and the err, events that blew up in Q4 of that year. So in my opinion, any would-be gold bull avoiding the sector right now is taking a big chance.

As stated a few times recently, the markets have gotten fun again after the drudgery that was the 2nd half of Hope '09. I love it when information is flying around, inflationists are still confident, deflationists are chest thumping and the public is well... doing what the public does.

Disclosure: Long the PM sector, no positions in broad market