5 year Treasuries are rolling over into Inflation mode.

This area is crowded by everyone now: Hedge funds, Mutual funds and Banks. Supply is coming but appetite is diminishing, values are rolling over into Inflation zone with Yield over 3%. When you have Blue Chips in Dow paying dividend Yield higher then 5 year Treasuries it is time to allocate at least some of your cash to equities to boost returns. Everyone is watching everybody, you can not afford to lose in returns and miss the turn around in the market being over defencive in that world.

Dr. Zinc and Dr. Copper thoughts on Global Economy. CZX.v, TNR.v

Why commodities? In the inflationary environment price of commodities could never fall to zero. It is determent by Supply and Demand. Demand is going down first hurting Price, Supply is determent by Price and Price is determent by cost of production. Until world is going into Depression with Deflation (credit contraction as a reason and price falling as a symptom) Demand is there at a particular price. Price will be adjusted by marginal project going out of production reducing Supply further. Fear here made this Bear masquerade possible: all commodities Trade is based on Credit. When you can not produce reliable Letter of Credit you simply can not Trade. Watch out what metals are telling us: Inflation is coming and Infrastructure will be the name of the game. Move above 25o will confirm these affirmations.

Another less reliable thought: now everybody is telling we are in recession: we were talking about it last year. With all those money coming into play and Unemployment of 6.5% we are not so far from Recovery even in US with new debased Dollar value.

More signs of life in equities. Intel INTC expecting Sales to rise.

Strong Growth in China, strong Growth in Japan. I will not buy this stock - there are more appealing bargains in my commodities sector. But the story is interesting and it is talking about Asian economy health. Intel produces chips which are used mostly in Asian Electronics producing countries. Orders for chips are placed before production cycle and bullish guidance is very important: producers are not expecting End of the world in the next 6 months. Stock itself is like value play with 3.5% dividend. It is more then 10 year treasury bond! Another bullish sign of extreme valuations.

If you ask me what am I looking for: for more value: I do not like to be restricted to consumer even in Growing Developing markets. I like solid production cycle in infrastructure developments like Power plants in China and Electric grids in Russia, China and Brazil. Like pumps in Oil Pipelines. Markets up or down they will be built. What you need is Copper. Now Freeport-McMoRan Copper & Gold Inc FCX is trading at 30 dollars with 6.5% dividend! Yamana Gold AUY is even more leveraged to the price of Copper.

So it is again ends with a Question is it the end of the world or a Buying opportunity of a lifetime?

Future rich and poor people are answering this question these days all over the world.

Double Bottom Must be confirmed by Fear Index - VIX is staging a reversal.

Yesterday was formed strong Bearish Hammer. Today is the day to paint the chart for Programme trades to start buying. Once PPO will make a cross over VIX will drop like a stone and Greed will take place from Fear. I was right to take profit on Google GOOG puts and is open to market rally now. I will revisit fundamentals on Google later.