Monday, February 8, 2010

Can You Feel The Tension?

Between the buyers (optimists) and sellers (pessimists) on Wall/bay Street, that is.  Another arm-wrestle is between governments who would like a little inflation because it's easier to control but economies flirting with deflation.  So, looks to me like we're into a sideways trading pattern for awhile.  I suspect the strength in the U.S. dollar last week was just due to Euro weakness, which continues.  Gold bugs are itching to buy but everyone else is holding back.  Lots of talk about pivot (inflection) points.  The only thing I feel the least bit certain about is volatility, which means active traders should be buying (and selling) the VXX.  Remember, read YDHIFM (below).  Do your own due diligence.  Can you feel the tension?