What a September from hell!!!

Any comments?

FWIW, I think everything we're seeing is a response to a US dollar rescue operation in the face of nationalization of their housing/mortgage market. Tape painting on a grand scale. The goal is to keep the dollar holding around 80, where there's important long term support.

You don't have to look any further than that old adage, "don't fight the Fed" to know what's going on. If you know the Fed (or Treasury) is going to do X, you ride their coattails in the futures market which takes everything connected to the futures either up or down, depending on the trend. The trend right now is dollar up, oil and gold down. The leverage is incredible in both directions, hence the volatility.

Fundamentals eventually reassert themselves, and when they do, they catch nearly everyone on the wrong side of the trade, hence the violent rallies as shorts rush to cover, or longs rush to bail, again depending on the trend.

Take a look at the chart on Inca Kola and ask yourself where we are in this process: http://incakolanews.blogspot.com

Personally, I hate this kind of market, but you have to understand it, or you'll forever be buying tops and selling bottoms.

ebear