Bubble Rewrites 'Rules' on Recession/Recovery

Of course, folks are also looking for PCs to be strong in the back-to-school season and during the Christmas season, based on a fantasy that occurred in the late 1990s. But, as I have always said, when Micron can rally on news like this dead-fish upgrade, it proves that pigs can fly, and it also means that any tech stock can go anywhere. So, while Micron levitates, I intend to be very careful, but watch the developments closely, because I think there will be a spectacular short-selling opportunity in a lot of tech names in the not-too-distant future.

A Greenback Ho-Hum for Tweedledee, Tweedledum: Turning back to the action, the real story was once again away from stocks. Bonds were trying to sustain their bounce from the turnaround that began yesterday, with the long bond up nearly a point at one point, before closing up about one-quarter point. In currency land, however, the euro was up over 1%, as was the Canadian dollar. I think it's rather meaningful that the dollar caught no bid on the back of the brothers Hussein, sort of like its weak rally the day the statue fell, when at the same time, gold started to go higher.

Molten Delight at Silver's Flight: Gold itself was up over 2% in the early going, but the real action was in silver, up a SOX-like 6%. My sources in the silver market tell me that we may be nearing a move akin to what occurred in gold a couple of years ago when Ashanti(ASL Quote) blew up. It would appear that the silver market is short "vol," and an upside accident could be in the process of playing out. We'll just have to see. Meanwhile, folks interested in owning gold and silver should already have taken the opportunity to establish or add to their positions. We can now sit back and watch what the upside looks like. As I was musing the other day, I think the low is in for the euro, as well.