What has been strong is very weak and what has been weak is strong. Commodities, soft and hard ,are getting spanked and the red headed step children are getting gobbled up. In my opinion, a very interesting dynamic is setting up. If Bernanke comes out less than hawkish on inflation, everything that we have seen happen this morning could quickly go the other way, and in a hurry. It may just happen anyway. I’ve been short some XLE and OIH. If things change I will get very long those two. If the market buys into Bernankes plan to curb inflation, I will stay where I am.
P.S. DTO that I posted a few days ago is having a good day.