Market Comment (S&P 1240) (DJII 10942)

So far, I view this as a healthy intermediate term stock market correction in a long term uptrend. I don't think it's anywhere near over yet.

Regarding interest rates, I still maintain the view that short rates are in a relentless uptrend that will not be deterred by loud jawboning in the financial community. I continue to believe that long rates will pace short rates on the upside - eventually cooling out the housing bubble.

Gold, silver and copper have taken a major hit and will need some basebuilding once they settle down. Why such a huge hit? In my opinion, the metal commodities spiked sharply above what was an otherwise healthy long term uptrend. The subsequent sharp correction has all but wiped out the spike, and I'm now anticipating an eventual return to the underlying uptrend. Having said this, I should add that single spike patterns are rare indeed. I would guess more wide swings lie ahead as we unwind the spike, but the underlying long term trend, as I see it, remains positive.