Tuesday Morning Quicky

Just want to welcome everyone back – hope you guys had a relaxing Labor Day weekend. Well, I hate to be right all the time (not really) but what I was predicting since last Thursday is exactly what we’re seeing this morning: The markets are rallying up hard as the big boys return to a charging Dollar, a Gustav loser of a hurricane (fortunately of course), higher treasury yields, etc. As expected the bulls will be squeezing most of the remaining short positions out of the market before we’re starting to tank.

A sliver of light was Gold tanking this morning, which is now scraping the barrel around 800. You guys grabbed those GLD puts two weeks ago, right? If not, you are being double punished this morning, which isn’t much fun, even for evil speculators.

Just relax, my esteemed and devious harbors of doom & gloom – much ugliness is on our calendar this month. Until then, just preserve your capital and stay mostly in cash so that you will be able to afford your legions of evil henchmen to do your bidding. Of course, for the day traders among you – there’s no harm in playing this move up – but be careful as it can turn on a dime any second.

I’ll be in touch later tonight with a market update and a forecast of market trend probabilities for the coming days. Not much longer now… time is on our side.