Back in

After Fed's 75 bps cut, and the way BSC was handled (or more accurately, mishandled by the Fed), and the way Fed injected liquidity like this is the end of the world, I think we'll likely to have three outcomes in the near future:

1. This is the double bottom and market will rally from here.
2. There is another shoe to drop and the market will eventually break the low and start another down leg.
3. Inflation is becoming higher than people expected and stay high for a long time.

Out of these three, I am not sure about 1 and 2, but I am pretty sure about inflation. Fed is using rate cut to inflate us out of trouble.

Yes, dollar rallied since it's only .75 cut, yes, gold and commodities got crashed. I think it's time to add. On the gold crash, it's biggest weekly drop (actually only three days) in 29 years for gold. I think there are few forces behind the sell off:

1. Funds raise cash, selling the profitable commodities and precious metals. Why do them raise cash? Is there another credit crunch coming, like BSC?If this is the case, the sell off is pretty much over and funds will move back in soon.
2. Funds rotate out of commodities and move to other beaten down sectors. If this is the case, the down side for gold maybe is at $850 or even $800.
3. Hedge funds are unwinding their long positions in commodities to meet margin call. Then the sell off is short term.

I think the sell off is likely over, long term fundamentals for commodities is still intact. I added about 1/3 back into commodities: DBA,DBP,SLV,GLD and DBC. All of them are at least 10% off high and some are close to 20% off high.

Will add them again on another sharp correction unless my thinking is changed.

I think DBP is a pretty good choice since it has 80% gold and 20% silver.