MERE WORDS DO NOT IMPLY TRUTH

Bernanke: Inflation not spreading CNN
5:50a
New Fed chief nominee, in pre-appointment interview, says price gains limited to energy and raw materials.
Bernanke to head Fed.

** As you should know, the FED watches CORE INFLATION, which excludes FOOD and ENERGY. So they say INFLATION is NOT filtering down into economy! Is this not pure BS or what?

SO remember that when you are shopping, when you fill your gas tank, that the higher prices you are paying is not real. When you purchase your first home, ignore the prices you are paying, because HOUSING PRICE INCREASES don't find their way into the data!

RALLY based on "NEWS" as does yesterday does not a lasting rally make, however that is not to say it is over just yet. RED futures may lead to turnaround especially IF Consumer Sentiment rises unexpectedly....and it might.

EWT is calling for a top in bond yields based on bipolar positioning of the Large Speculators (net short) and the smart money Hedgers (net long). I see the yield set to either shoot up or down here near important support and resistance. If I was to gamble, I might consider 2 yr yields or shorter, so my money wouldn't get tied up too long, held to maturity I cannot lose principle. I recently bought some 4% CD's just to park some cash for 6 month duration.

I wouldn't laugh off a 169 pt gain, no sir, and I am not sure that is the kickoff of the XMAS rally, early......let's watch market action for further signs.

D