When to Ignore the Technicals

When the Fed chief says he doesn't care about a weak dollar, or the prices of commodities rising so that we can avoid deflation, you better believe the market will move higher on that. Except now EVERYONE is going to jump on the short dollar / long commodities trade. If you want to help inflate the bubble, jump on in, but I would suggest that you use options so you don't get burned when the bubble bursts.

Some of the only good economic news that I've been able to find:


The Baltic Dry Index has doubled in the past month. It's still more than 50% below its all-time high, but still nothing to sneeze at.

I'm not willing to participate in the market's ecstasy at these levels, but I am a little short financials and long-term bearish over the next 6-9 months.