Wow!  Take a look at gold, bonds, and the yen after Fed Chairman Ben Bernanke’s testimony on Capitol Hill was interpreted as “no mas” on further quantitative easing.  We we’re a little too complacent with our covered gold positions and took some major pipe this morning and has us reaching for the you know what.

With LTRO2 done and LTRO3 not in sight, stocks are starting to wobble and we expect the long awaited pull back is now imminent.   If earnings growth were accelerating, one could argue that stocks has the potential to move higher without further liquidity injections.  They are not, and, in fact, at peak margins.  Furthermore,  stocks are up 20 percent since October.

Time for a nice healthy pullback, in our opinion.

(click here if charts are not observable)