Just a few thoughts gleaned from information at hand . . . I believe we are about to bust out although, IMHO, gold and silver will have to achieve much greater heights before that happens.

Volatility has come back to the markets in a big way recently. The US government continues to wage currency war in a desperate attempt to devalue the dollar, while at the same time trying to stimulate the economy. They have assumed that rising stock prices and record low interest rates will make everyone happy and eager to spend again. This is probably true, but is it sustainable? The core of the economy, along with its millions of unemployed citizens, is still reeling from the worst recession since the Great Depression. And contrary to what the statisticians will tell you, the recession never really ended.

Doom and gloom aside, the commodity bull market is intact and will win in the short to medium term. We are long on just about every commodity at the moment (via producers and junior resource stocks). Daily shake ups and pull backs are not swaying us from the fundamentals of a continued rise in commodities. With that stated, never feel bad about taking profits. After all, you deserve it.

The markets took a quick beating earlier this week, but came back with a vengeance on Thursday and Friday as exchanges across North America climbed close to 3%. We will see many more one and two day corrections as we did prior to Thursday in the weeks ahead.

China is beating off inflation aggressively. The US has finally thrown in the towel (in regards to playing fair) by inflating its own dollar in a hope that one day, far into the future, it will be able to raise interest rates. As an investor, what you need to know is that these currency wars are going to help commodities rise and increase the value of the stock market.

We are a long ways away from a real and sustainable economic recovery. Until there is a prolonged decrease in the number of American's unemployed, our economy can only grow so much. 1 or 2% GDP isn't going to allow the Fed to raise interest rates anytime soon. Even the Fed knows this and has pledged to keep interest rates at record lows for the foreseeable future. As long as that's the case, it's a 'commodity investor's paradise'.