I completely agree. The Fed/Treasury is pulling out its trump card too early. They're putting in the ace closing pitcher in the bottom of the second inning. Firing up the cannons when the opposing army hasn't even reached the battlefield.

Seriously, what are they going to do next?! They are all out of ammunition. We may get a few more days bounce once this thing is settled over the weekend, but after that, watch out. The timing is eerie, because Rob McHugh in his newsletter has been calling for Wave 3 down of 3 to begin on Monday +/- a few days. He is talking DOW down to 7500-8000 over the next two months. It makes sense fundamentally, that after this rally fizzles, there is literally nothing left to prop it up anymore. He has been discussing this timing, September - October, for the last few months, so this is not just rear-view mirror call.

I believe the next round is going to be direct monitization. This may prevent institutions and programs from failing, but will vastly increase the money supply. In this time, gold will switch from a security haven to an inflation haven, which, in my mind, has much more upside potential.

Let us not forget that in the 70's, there were not any major financial institutions going under, therefore gold was not a security haven, yet it went up 27 times almost entirely due to inflation. So far, we are up 3 times. And the inflation is going to be worse. We have only just begun.