I think the Fed panicked and opted to rescue the stock market. Instead of the dollar continuing to strengthen...it crashed... and it's continuing to crash. This is telling you the Fed...has flooded the markets with liquidity. That's why the dollar is starting to crash. The Fed has probably blown their chance to get inflation under control.
The fundamentals changed on August 2nd. The Fed blinked. They opted for rescuing the stock market and the financial system and taking their chances with inflation. A lot of people want to spin this, but here's the reality:
For Gold, April 12th is when the [first] easy phase ended. I warned people that one of two things would have to happen. The easy phase was done, and this strong turning phase was done. Either gold had to give us a sharp correction back down, or it had to turn sideways. As it turns out, gold turned sideways. And during this period, both sides get taken to the woodshed. Bulls, bears, it doesn't matter. Both sides lose money because the market just whipsaws and it's erratic; there was no trend. (Just don't do anything, or bet small, and you're fine.)
As I said, the fundamentals changed on August 2nd. We've had three tests at $2500. I'm pretty sure this breakout's going to hold and we're now starting the next easy phase.
We are set up to be aggressive during this next easy phase and we expect to have one of, if not the best year ever in the S&P.
When the Fed aborted the stock market crash, they probably unleashed the inflation genie again and over the coming months and several years, it's probably going to be really bad inflation all over again. If the administration imposes prices controls, it's going to be so much worse.
It's about recognizing what kind of phase you're in. During an easy phase, be aggressive with buying. I'm pretty sure we are in another easy phase.
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