U.S. Stock Market – I continue to believe the least resistance in the stock market is to the upside despite believing not only is economic growth greatly hampered by the ever-increasing debt levels, but also political paralysis that has gripped Washington. I do believe it can get another shot in the arm from a “QE 3″ type action by the Fed in the not-too-distant future. I’m not the only one who thinks this.

U.S. Bonds - I’m struggling with two things in 2012:

1-Not saying anything bad about the Vancouver Canucks (You have to admit I’m doing okay on this)
2-Wanting to short bonds in the worse way

Ideally, a new low on yields on a new QE action by the FED would be too much to resist so stay tuned.

Gold – This article is not far-fetched. We still need 2 consecutive closes above $1646 to remove any lingering negative technical angles for the perma-bears to harp on but it’s nice to know they have once again cried wolf and ended up bloodied from their erroneous cries. Isn’t it also nice to know you can always count on Tokyo Rose to be wrong and go the other way?

U.S. Dollar – The bull dollar boat is so filled up that some of them are holding onto the sides while treading water. Interestingly, it has not gotten above real key resistance despite all the fluff about some new mega dollar bull market. A reversal on something like a new QE action would not surprise me. In the end, America faces a far worse debt crisis than Europe has seen and the longer we don’t face up to it, the worse it shall be when the can is no longer able to be kicked further down the road.

Oil and Natural Gas – With all the sable rattling in the Middle East, hard to envision a much lower oil price. Natural gas is overflowing and hard to see how we go much higher for now. Longer-term its still okay but the shares are mostly overvalued.

Please Note – I like to suggest you take a look at this report. I’ve no compensation arrangement but find the author and interesting young man in our business and am interviewed by him from time to time.

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