A pretty good review that is too dollar bullish in my view and maybe a little bearish on oil.

“U.S. Stock Market – I’m still standing by the door with my bags packed and my bear suit pressed. I continue to believe the “Happy” people can still get the DJIA to around 11,000 if not even somewhat higher. As many of you know, I’ve been looking for such a feat from last spring and said over and over again that the so-called rebounding economy can last to about mid-year 2010 before rolling over again. I believe the “Happy” crowd will try and run with the 4th quarter GDP that I estimate can come in at 4%+. This should cause one last orgy of “happy days will be here again hype” and allow the market one last day (maybe even week or month) in the sun before my scenario of a Japanese-like era takes hold.

U.S. Dollar – The “countertrend” rally in the U.S. Dollar continues and my target of the 83 area on the U.S. Dollar Index remains. This is not some new-found love for the fundamentals of the United States but merely a corrective phase in a continuing secular dollar bear market. I’ll wait to see the dollar bull boat fill up before suggesting abandon ship (I also expect the gold perma-bears to be packing as many poor souls onto this boat with them).

Precious Metals – I’ve been waiting for one more wash out before declaring in my mind the correction/consolidation is over in gold. I believe my wish came true today. While the risk still remains $1,050, the upside of several hundred dollars higher demands full bullishness again. Silver is also equally attractive while platinum and palladium are due for a correction/consolidation.

Base Metals – I expect them to at best match precious metals performance and continue to suggest over-weighting with precious metals-related investments.

Oil and Gas – I remain dead neutral.

U.S. Bonds – I’m very bearish and believe one should avoid tying up large amounts of principle dollars at current rates for any length of time past a year or so.”

Peter Grandich, Grandich letter