I am not making any changes to my market positions today (still out of crude oil and the broad stock market and long gold and silver).
The broad stock market has been very bullish this week, and this is undoubtedly the result of news coverage of Janet Yellen, Ben Bernanke's likely successor as Federal Reserve chairman (chairwoman), as she undergoes extensive questioning by the Senate Banking Committee. Ms.Yellen has essentially given a big thumbs up to the continuation of the Fed's policy of quantitative easing (QE) by saying that there is "no set time" to start tapering. Wall Street's elation is causing this market to push the limits of our time window for a correction, but it could still turn here. If a correction occurs now it may be brief and small but would give us a better entry point to go long.
Gold and silver both bottomed on time for a reversal early in the week, but their subsequent rallies have not been strong so there is still a danger of prices falling back unless rally momentum picks up quickly.
I will analyze and discuss the markets more extensively this weekend.