This made me laugh......

"COMMODITY BEAR SIGNALLED AS FED PERFORMS LIQUIDITY DRAIN....." so begins the headline on a rather questionable website devoted to precious metals and energy. Now there is nothing wrong with a PM site who questions the validity of whether the move is over or not, hey we all have our opinions and I will respect any opinion that is backed with supportive facts.

But, this website is notorious for flip flopping his views on gold and metal depending on where the metal is going, and I mean his long term views.

Now here is the same guy just a week ago:

http://www.clivemaund.com/article.php?art_id=68

I used to subscribe to this service a while back, but got sick of the flip flopping.

I did not read the story about how the Fed is allegedly draining cash because its wrong. Cutting rates .75 instead of 1.00 is not draining cash. Loaning out 100's of billions of dollars is not draining cash from the system it is the exact opposite. I guarantee you when gold eventually starts to climb again, this guy will be cheering the new bull market on.

I guess the bottom line is that price alone cannot be the catalyst for a direction change; fundamentals are. When a Paul Volker type is back in control of the Fed, then I will re-evaluate my opinion on gold. I also think it's amazing that this time last week the financial system was on the verge of crashing and just one week later all is well. It took several years of abuse and easy money to get into this mess, it will take a lot longer than one week to get out.

You know where the roads are pointing.