To All Rational People-
If you can earn nearly 4% on your money S/T why oh why would you want to be in this market? Inquiring minds want to know. And BTW, bonds are in the tank again today just as Bill pointed out. Get some sleep now Bill. :)

Strong early - leading to selling off later = distribution.

A great example of fighting the emotions of trading is when you are short, wake up in the morning to find that the S&P futures are higher. You start to want to puke your shorts, but you know that dumb money will do that on the open pushing up prices and that if you just wait, and see a weak end of day, then you know that you are probably right to be short because you are with the big/smart money.....for now anyway. It's not an easy way to make a living.

I'd like to get a better understanding of inflation. We all know that energy prices are driving up commodity costs and input costs of items that we purchase. But as the economy slows due to liqudity being drained by the Fed's tightening and by the long bond rising, will some of these cost pressures ease? Also, there doesn't seem to be a lot of upward pressure on wages. Although retirees will soon recieve a 4% + increase in their social security, non-union workers are lucky to get a 2-3% annual merit increase. And Union workers are facing heavy pressure to give up wage and benefit concessions. Also, we still have quite a bit of outsourcing to lower cost nations (i.e. India and China). With all things considered, is inflation just a short-term problem?