Two charts: ABX and TBT

ABX: http://finance.yahoo.com/echarts?s=ABX#chart1:symbol=abx;range=5d;indicator=sma+volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined

Up over 16% in 5 days, while my call options have tripled in 5 days. Actually, in 10 minutes, it's gone up another 8 %. This is not the ramblings of the lunatic fringe--this is a clear indication that inflationary fears are resurfacing, and that the market is climbing the wall of worry about USDollar debasing. For technical traders, it also means the gold short sellers are getting squeezed, and are scrambling for physical delivery.

TBT: http://finance.yahoo.com/echarts?s=TBT#symbol=TBT;range=5d

Up over 17% in 5 days.

What does this tell us? The markets are beginning to believe that Obama's stimulative program may work. While I agree it will "work"--we'll certainly create more jobs (temporarily), but due to high deficit spending, it'll be a vegetative recovery, and markets will remain highly volatile. I do not believe it will be a productive recovery, and asset values in equities and real estate will remain grim for at least 5 years.

The prevailing attitude will be: "well, at least I have a construction job, even though my paycheck is constantly being eroded by a weakening dollar and high inflation." With the debasement of the USDollar and every other currency due to these stimulus packages, gold will retain its real value. Every dollar spent to bailout failing industries will be one less dollar to invest in the productive private sector. This "Newer Deal" will again prove disastrous for years.

Having said that, I am protecting my capital with hard assets in the precious metals, and retaining my purchasing power by nibbling in the soft commodities.