A Silver Lining...

The financial sector and commodities market are reeling right now. It's my business to know which way the wind blows-because it is what I do.

In the next few weeks I will be buying silver in the futures markets and the physical metal. I do not pick bottoms when trading (it can be smelly) but will scale into the action-which means I accumulate even as it falls-also known as averaging into a position.

I expect silver coins to be a well valued at this price level. First upside target around $15. Gold is a value in this zone but needs to go lower first before I buy. Liquidation is in progress IMO because greedy hedge funds are still heading for the exits.

Cash is king and driving the sell off but it will get overdone at some point as it always does. Hopefully the stock market pukes some more so we can have a real buying opportunity. I feel bad for the IRA's and 401k's but this could have been prevented. I am just a trader and do not wish people to lose money in their portfolios.

But people can be lead into disasters by wrong minded advisors. Especially the ones who bought into the phony concept of asset allocation. These people were so smug thinking they could not lose in a down market. But this wealth destruction kicked them in the butt and they are now getting very scared.

As Obama's lead appears to hold he keeps the folks guessing. What will he do? What does he stand for? The market does not like uncertainty. More good news for Obama may mean more selling in the markets-a lot more selling. The best way to trade is to be a tourist.

And a good way to live life.