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Again, These Guys Are Good

Never but never underestimate the power of the Global Power Elite and the Trading Elite.

They are good.

I mean.  Rug pull on schedule last Monday and then Friday yank up then down and then yank up across the board today with the dollar putdown.

Yes, that is the key.  The hidden driver was lined up to be a yuan strengthening.

Just exactly what was needed to obfuscate the cap on NOT letting the Dollar Index cross over 80, knock it down, and then when the Dollar Index gets another bump up from "Europe" problems, it is ok, it still will not go over 80.  This insures that the market does not tank and is poised for moderate recovery on the year and ready for early next year's big goose to keep the Obama in office.

This absolutely guarantees that we have seen the bottom of last Monday at 1000 (I posted at 1005 saying I was buying small amounts.  Stupid me.  Have to realize when you are right, you are right but it is still always hard to buy when things are plummeting.

But now the fix is in for the topside.  Ok, where does it go from here?  Well, first off the news is BS as usual.  Got nothing to do with Europe.  All about managing next year.

Demand and supply issues on the commodities are definitely not in favor of huge moves up right now.  To say oil is at an average b/w Light Crude and Brent of say 96 to 100 is incorrect at this time.  There are no indications of demand stats supporting that.

And the Power Elite does not want a runaway up on commodity prices right now.  No.  A floor yes, but average oil back over $100 pushes up the inflation stats too much, so today's super soaring will settle back some but probably not below 80 on Light Crude and 100 on Brent.  So there is going to be a lower re-entry point on commodity longs in the next 2-3 weeks, maybe we get another noticeable dump the end of next week.

For example, we have Brother Ben making an appearance to discuss long term effects of the Great Recession to the Boston Fed on Tuesday, 10/18 midday.  Now let's see, what good things can he say.  Not much.  In fact, that might dovetail with a bump down since we have the IBM runup right now, it gives a reset to kick it down.

With Light Crude pushing 86, up 12 or 15% since intraday low a week ago and the dollar down to 77.50 and Euro up, I think it'll top out on some momentum and get a small reversal.  The key is that the financials will be used for the big goose because they are not inflationary and therefore have less negative consumer impact when rising.  Therefore you can make some longer term money on the commodities but the winners will be the financials.

Notice how the market got driven up and parked right at 1190.