20110408 Weekend

Dow 12,380.05 +29.44
Nasdaq 2,780.42 +15.72
SP500 1,328.17 +5.34
30-yrBond 4.63% -0.01

Dollar making lower lows and lower highs. Holding just above 75.0. 74.17 is a key level, which breached will drop to 72. Below 72 and there is a waterfall risk and collapse. Short term the dollar is due for a bounce.
WTI oil closed at 113.05.
Money moving from bonds into equities. Commodities continue to run higher. Silver jumped higher and the strength is targeting 50. Everyone wants a silver pullback opportunity to buy with both hands. Gold is shaking off it's sluggishness, though is still outpaced by silver. Some miners surged higher and settled into nice gains at the close.

The hand-wringing about a potential federal government shut down was energy poorly spent. They agreed to reduce spending by reducing spending by an unremarkable and inconsequential $38 billion. This story did entertain the info-consumers and distract them from real issues, such as continued escape of radiation in Japan and the dollar sinking.

In this week's Barron's Alan Abelson parrots the line of the controlled media that inflation is nowhere to be found Where Did All the Bears Go?:
"... inflation doesn't stack up as all that immediately threatening."
"For he appears to be auditioning for the role of the Don Quixote of central bankers, attacking the phantom windmills of inflation."
Inflation is not a problem for someone who doesn't eat, doesn't heat a home, doesn't drive a car, and doesn't buy insurance. The middle class and working poor are in the process of being wiped out by higher food and energy costs, and Alan Abelson talks about "phantom" inflation.

The Federal Reserve is also staffed by aliens who don't eat or use energy:
"We're likely to continue to see a moderate pace of inflation," Atlanta Fed President Dennis Lockhart said at a business conference."

Real Americans are discovering rising prices:
"The government says inflation is low, but that's not what I'm seeing at the grocery story," Jorge Alberto, an 88-year-old retiree in Miami ..."

GLD 143.66 +1.15
SLV 39.86 +1.13
PTM 21.21 +0.30

XLE 79.72 +0.28
XLF 16.46 -0.15
VXX 28.918 +0.54

VGZ 3.81 -0.11. With metals up, this had poor price action on light volume. Sold at 3.84 for .04 per share gain.

Current mining longs:
EXK 12.37 +0.47
GPL 4.30 +0.18
MDW 2.13 +0.09
OKOFF 2.76 -0.04
RTRAF 1.97 +0.00
UXG 9.58 +0.17

JJC 59.81 +1.18. iPath DJ-UBS Copper TR Sub-Idx ETN.