Up Periscope

"That's all right, Mr Ryan. My morse is so rusty, I could be sending him dimensions on Playmate of the Month."
--Capt Bart Mancuso (Hunt for Red October)

Markets rallying out of the gate after yesterday's QE2 announcement and prolly election results hangover. Commodities are screaming higher. Gold is just south of $1400 and silver easily creased thru $25. The dollar, I might add, is listening to some serious chin music and is marking a low for this move.

The bet seems to be some combination of a) recent events will create real economic value, so let's get long risky assets, or b) recent events are going to destroy the dollar, so let's swap USDs for assets that will preserve our purchasing power.

b) seems like a more realistic bet than a).

That said, my antennae are on alert that we're approaching a market cusp. Sentiment high, shorts low, gappy price action...

I'm on the lookout for sensible points to exit select longs in commodities (DBE, GLD), and add downside exposure (SH). Am also looking to add to, yep, my long dollar exposure (UUP).

Sitting on hands presently while seeking clarity...

positions in DBE, GLD, SH, UUP, gold, silver