What's Next?

Demonic crazed mass murderer Osama Bin Laden killed by crusaders in shoot out at palace in Pakistan. How’s that for a blood thirsty alliteration headline. We are covered in blood and cheering for Cheerios this morning in sheeple land. The MSM talking heads are telling the sheeple all over the country they can rejoice and breathe a sigh of relief now that the evil demon is dead. After all if there wasn’t an Osama Bin Laden we would have had to have invented another demon to replace him. Hell we’ve got a half a dozen now over there to take his place. We’ve got Daffy…we’ve got Assad…we’ve got Ahmadinejad. So maybe it was time for us to make good on our pledge a decade ago by GW to get em dead ur alive. After all ten years is probably enough time to leave his scalp out there for the masses to see before we finally put him out of existence. Now that he is dead…..I wonder if anyone else out there feels the same as I do. I get the same feeling I got after seeing pictures of Mussolini and his girlfriend hanging upside down, dead being paraded around Rome at the end of WWII. It was mesmerizing to see the smiling,bewildered faces of all the Italian sheep in the picture. The faces reflected a sense of macabre pleasure in seeing the slaughter and display of the hapless dictator and his concubine as if it were some surreal art display. What’s funny is the majority of those faces were probably cheering him just a few years before when the murdering bastid was telling them what they wanted to hear….

I was with two staunch republicans when Fox news revealed that Osama had been killed. Both of them had the same initial reaction which was … so what?? Big deal. I felt like this was probably more of a reaction to the fact that both of them probably harbored a resentment that O would now have credit for Osam’s death. Both individuals were big proponents of both wars and both buy the MSM mantra that all Arabs are terrorists. So I really wasn’t surprised that they weren’t celebrating his death. I did agree with their initial reaction was which was “So What?”. Where I do digress is that I am fearful that it can ignite a retaliation strike down the road. Oh well….the cycle of violence will continue…..for this is how it is written. At least by the most powerful group every conceived.

People will beat this horse for a couple of days and tell you what a great thing it is for us… but I am more interested in the overall effect that it has on the Islamic extremists. My guess is it won’t be beneficial for stabilizing this region anymore than our invasions of Iraq and Afghanistan stabilized it. Remember how we were told this would be great for us in the region and how we would be welcomed with open arms. Right now these regions are boiling over in rebellion and nationalism and this could serve a very negative effect on these feelings….we’ll see. Did we just create another martyr for the anti-western extremist to rally more converts and terroists around? You can decide for yourselves.

From our traders perspective the dollar should get a knee jerk boost and this may serve for at least a multiday short squeeze for the dollar…..which of course will give the commods and PMs the much needed smack down that I have been hoping for. This would be VERY healthy and give these markets the much needed chance to build up the technical energy for their next big long term move. Which should be gold at 1700 and silver at 65. This is a very welcome pullback whether you understand it or not. This game has to have it.

Next question will be when to buy. If I am right then you may want to wait at least a couple of weeks to see how much air they can take out of the metals. I am hopeful this will happen but will not be surprised if silver received only a one day kick in the pants. Certainly if you went to almost all cash as I did….nibbling and short trades are in order as early as today…….but if you have a core still then sitting tight and hoping that in two weeks we start to see silver touching some lower supports like around 36. That is probably going to be wishful thinking. We’ll have to wait and see how they play it. Remember all of you that SLW GFI were a couple of stocks I’ve been watching closely for a couple of weeks…. that have already had corrections so they may really get tasty on this pullback. I’ll be interested to see how they react. Also HL has been whacked and has made a great trade. Look at it.

Energy stocks need air out too…..SGY ATPG HERO HNR WPRT….lets see how hard they can whack oil…it could be a one day event too…..DTO should get some help here as well as EUO if the dollar rallies hard. This week promises to be a traders dream….IF you make the right moves….gl

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