Don't be fooled by the stock market rally!

Good afternoon all,

I apologize for the delay in putting this on the blog but it's been a very hectic week. So, I know you're all wanting to know about the Stock index futures and the big rally today. Well, all I can say is that it's hardly surprising that the equities markets would rally after the FED cuts both the DISCOUNT rate AND the FED FUNDS rate by 50 basis points. Is anyone listening to what the FED is saying? Did anyone see the early morning headlines regarding foreclosures or the builder sentiment numbers being the worst on record? Then get the FUCKING WAX out of your ears and OPEN YOUR EYES! If all is well with the world then why is GOLD rallying sharply on the news of the FED rate cut? Because all IS NOT well with the world!! Gold is probably headed for the all-time highs above $800. I just hope that it's done in an orderly fashion so the trend can be sustained until we reach the $1,000/oz. mark. More later.

Dale F. Doelling
President and Chief Market Technician
Trends In Commodities