Comments & Outlook

Gold bullion, futures and common stocks are, in my view, finally putting in a bottom. I don’t think the broad equity market can rally far unless the precious metals and energy stocks are included. They may take a day or two more to kick into gear, but I feel they will. The massive reflation (ie, expansion of credit) will lead to higher commodity prices, which started in the agriculture contracts yesterday. In a day or so, I do anticipate the action to extend to the oils and golds, probably after the options expire on Saturday. So, it might be good to take on some new long calls today on any weakness in prices.