Personally I think that we are in a period of consolidation. Some of the weaker hands are giving in or some are being forced to liquidate to cover elsewhere.

Either way, I can only see sideways movement for some time to come. A commodity based rally is not in the cards, as I suspect this latest rise in the TSX is only a dead cat bounce.

May is going to be a make or break month in the eyes of the market in terms more mortgage loans coming due and the credit card defaults on the rise, not many are extending themselves into areas considered to have uncertain risk.

The only place to go right now is gold as evidenced by Paulson hedge fund buying into AngloGold. This is a fund that made a boat load by betting against the subprime mess.

Smart money, maybe!

POG has fallen the past 3 days but it will bounce back depending on the Fed's economic decisions today.

In the mean time, we can accumulate at these prices for awhile and wait it out.

Long and Longer, the mantra of any base metals investor these days

AK