I think the public is getting awfully excited. Make of it what you will.
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As suspected the surge in USD/JPY and Nikkei is causing global
markets to factor in an inflationary boom. World bond markets and
interest rates are showing a change in trend. Banks and housing remain
very strong while most commodities are making all time highs.
While
the S&P 500 has started to stall at resistance levels the past few days (Editor's Note: this was written Thursday), I
am out of the VIX calls because I only suspect it will be a pullback
and nothing more. I am thinking it will be the last pullback before the
market truly takes off.
While I hate to be so sure of
the future, every single market that factors in inflation is looking
very strong while bond markets in my eyes have started topping out. Now
the only thing left in a huge inflationary boom is the fall of the US
dollar and the rise in silver and gold. You can take your bets now if
you want, but I need to see the chart's confirmation before I place my
bets on those.