Stocks had another wild day, ranging down to test the lows, and then rally back to positive gains after the rest of the world had gone to bed for the week. I am not so sure that we are done with this. The lack of conviction in the buying is palpable.

I am not sure where this short term correction will go. I did say it was coming as a reaction to a blow off top. No matter what happens in the short term, I think unless we get a cleansing of the system and some meaningful financial reform that we will see something that will be remembered as ‘a crash’ once again, as we had seen in 1997, 2001, and 2008.

And this next one is likely to be of an even greater magnitude, as each of the prior financial collapses have been.And I am concerned that the next one is going to leave a tear in the social fabric, and the balances in the global relations and economics.People will only take so much. And the reaction of the status quo will set the tone and theme for where it goes from there, and how deeply.

Gold and silver continued to slide sideways, with each rally attempt being firmly pushed down to what looks like a long trading range. The physical inventories of gold offered for delivery in the Comex warehouses is once again getting a bit lean.

The Dollar managed to rally just a little bit higher.It has worked off its deeply oversold condition now.

Next week we will be getting quite a bit of economic data, including the PPI and CPI, and Import and Export Prices. This may tend to affect the markets, and their recent epiphany about higher interest rates— or not.

The Congress critters never cease to amaze. After having recently slashed taxes for the wealthiest few, and increased military spending while once again forbidding the government from negotiating cheaper prices with Big Pharma, the campaign has already started to cut Medicaid and Medicare in order to make up for the deficits.

They are certainly not shy about being hypocrites, and not too lazy to steal from the weak and the disadvantaged.All these things for the benefit of the powerful and the wealthy, whom it is that they serve.It would have been better if they had never been born, than to betray their oaths and sacred trusts.

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