Below is a good article that takes a closer look at the quality, or lack of, exhibited by this PPT induced bear market rally.

It appears London and NY blatantly hit gold and silver earlier today according to their attack plans, as accurately assessed by statesidereport.

Regards - VHF

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The Garbage Rally

TPC

May 18, 2009

The battle lines have been drawn and the arguments are raging; is this a bear market rally or new bull market? Regular readers are familiar with my position. I still maintain that, despite a seemingly calm economic surface, waves are still rippling underneath. We’ve recapitalized the banks, but the toxic assets are as alive as they’ve ever been. Meanwhile, the heart of the problem, the U.S. consumer, remains as weak as ever. The quality of this rally represents these bleak underlying fundamentals. As you can see below, stocks with junk bond ratings have performed extremely well during this rally. I attribute much of this to short covering as opposed to a real reach for risk.

Meanwhile, typical high risk high beta names have actually rallied less than the S&P 500 as I’ve previously written . Is this just a bear market rally or a new bull market? If the quality of this rally has anything to say about it you’ll be more inclined to lean towards the former….