Not a lot to report today, looks like the election fix is well under way push up stocks and bonds, hold the dollar stable, hold housing together for another few months and smash commodities just like Bush,s election in 2004 which was also in November. Hopefully this rally will gather some momentum and then morph into the Santa Claus rally.

Personally with a slowing housing market I think it will ultimately morph into the mother of all bear traps as we see a customary reversal in the first 6 months of 2007, just like we did in 2005 and 2006.

It is very sad and very worrying that we have reached this stage of blatantly manipulated markets, it makes you wonder what else they are trying to manipulate. To summarize our position

Stocks - Since January 2004 we have been in NO MARKET not up or down but grinding sideways. To the manipulators this is a far better solution than what we should have had Phase 2 of the bearmarket.

Bonds - Being monetised via the "Caribbean Banking Interests" and Britain to regulate the long end of the curve. The heavily talked about flattening of the yield curve is the inevitable result of raising short term rates while monetising the long end to protect the housing market.

Housing Market - This is running out of steam on its own accord, dodgy borrowers, dodgy lenders, dodgy appraisers, dodgy real estate agents, dodgy builders the whole bubble has been blown on a mass of lies and now the truth is out for all to see.

Commodities - Only real bull market in town, but very unloved by Wall Street and open to blatant attack and price manipulation.

Precious Metals - As commodities BUT MORE SO

What to do? Stocks stay LONG but don't expect to make much, Bonds you would be buying at a peak with a yield of about 5%, which is probably lower than the TRUE INFLATION RATE. However the risk of a Bond market crash is very slim in my opinion why? It would destroy American Business, Consumer and government all of who ARE FAR TOO MUCH IN DEBT and could not afford the inverse of a bond market crash HIGHER INTEREST RATES they will monetise the debt further as they have already began to do. Housing NO !!! This is going to be a disastrous investment the next 10 years, that's right MINIMUM 10 YEARS, housing busts or even corrections tend to be very long term remember the the last one which went from the late 80,s to about the year 2000. The Japanese bust went from the late 80,s and is still going, 16 years and still running.

Commodities? Yes this is the only true bull market in town BUT and this is a BIG BUT they will try every dirty trick in the book to try and dislodge you from your position however much you would like to YOU CANNOT USE MARGIN it is just too dangerous especially in the Precious metals. Sad but true