Stocks And Precious Metals Choice - Economic Cargo Cults - Quad Witching Stock Option Expiration

Stocks bounced today, off short term oversold conditions that were almost incredible.

Gold and the Dollar also bounced today, and the VIX remains in a very high-risk level.

To say that the markets remain fragile would be an understatement.

There are a number of stimulus plans and initiatives being considered, now that a few of the Congressional knuckle-draggers have shambled back to their corporatist compounds.

This is a demand shock.

It is not a run-of-the-mill recession in the business cycle. It is more like a market crash due to some global event like a world war that is only loosely under our control.

The focus of the administration and the financial powers should be to soften the blow to the consumer, and keep the spark of demand alive.And once the medical crisis has eased, to engage in serious stimulation to bring back the recovery.

But there are many powerful constituencies lining up for bailouts and handouts. In the last crisis, the consumer was given the short end of the stick as the moneyed interests settled down at the public trough.

And they are lining up already to do it again. The privileged become hysterical when they see the status quo in peril.

As a reminder, this Friday will be a stock market quad witching option expiration.

Do I think the stock market has bottomed? No.Not yet.

We have not seen the kind of shattering drop after a brief 'relief rally' that is generally multi-day.

The usual suspect were back to their old antics pretty shamelessly today. And I have been surprised to see some of the old names from crashes past coming on to once again render their foul nostrums.

They will never learn. The question is, will we?

Have a pleasant evening.

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