Jack Chan is presently 40% invested in gold and energy.   He recently removed a hedge on his gold positions and added some more longs.  His rationale is the $BPGOLD botttomed at a level that rivaled the level in Nov 2007.  He is also aware of the strength in the USD and thinks both can rally.  This is very much contrary to the P3 outcome and potentially suggests a melt up to test the highs of SPX.  He sees the HUI in a massive cup and handle and has very high targets in his sights.  I've followed JC for a while, and I've rarely seen him so outwardly bullish on the market.  I wish I would listen to him more!  For those who don't know JC, his track record is pretty good, but conservative.  He hasn't really made any money in about 3 years -- hasn't lost any either.  

I honestly can't picture the markets doing that with the fundamental backdrop.  It is killing me to know the unbelievable challenges we face in the world economy -- and the market rockets higher on short squeezes and bearish sentiment.  I know "don't fight the fed", but why don't they just hold rates at 0% forever and everybody gets rich in perpetuity!  When things go bad, just squeeze the short sellers and the majority is happy!  Run huge deficits, but just push it off to another generation.