Correction is Over

As the chart of the NYSE Composite shows, the correction is over.



Prices make a double bottom
Trade up through resistance
Fed warns against inflation
Fed won't lower short rates any time soon
Stock prices retreat for one day
Prices make new highs for the move.

This correction is over.

Time to get back in the market and put that new money to work.

Money Growth Continues

As the chart below shows, money growth continues, so don't expect any relief from high short term rates any time soon.



Gold prices are not falling and bond prices are. Be careful.

The stock market is sitting at resistance, waiting for this correction to resolve. Right now, it looks like the damage has been done, and the correction is over. We will know in a few weeks.

TACTICS
Stay away from long term assets unless they are perfectly matched. Continue money market arbitrage.

STRATECY
Steady as she goes.