Today there seems to be a global sigh of relief that the nuclear power plant problems in Japan have subsided. Here in Japan it seems that some definitive steps toward normality have occurred in the past day or two.

So the risk-on trade is back in all its glory. Gold and silver are benefitting from that, but not commodities like copper. While gold and silver look strong, there is a major cycle ending tomorrow and it might be worth waiting a bit to see what happens. On the other hand, really aggressive traders could jump onto a short-term uptrend and hop off at the first sign of trouble.

Anyway, let’s cautiously be thankful that much worse did not happen. That would have been a tragedy beyond belief for Japan. Maybe it was unlikely but the risk was definitely there. The markets over-reacted, to be sure, so we can expect to see a relief bounce.