Yep, Fakeout It Is -- 1:0 To The Market

All I can say is: thank God I am not in this whipsaw market. Whenever equity bulls get too worked up about rising prices, this is exactly the sort of day we need to pour some ice water on their hot "we are so bullish we could cry" feelings. On Monday, I made the same point, thinking that the recent equity gains may well turn out to be nothing more than a first of many more to come "fakeouts". The strong headwinds remain and I just don't think the inflation scare is out of the way yet (have you seen commodities lately?). Tread carefully here. This may well be the beginning of a significant equity markets correction.