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I'd say hang in there. A bottom seem to be forming with a soft patch Friday (March 5) and the following Monday when prices could temporarily dip. I'm looking at the middle of next week as a probable entry point.

Price action yesterday and today was bullish.

That's right.

The reason why the Fed is coming accross as dovish is because they have additional data that we don't have that makes them believe that the economy is slowing down, so markets and the Fed are not completely in tune right now. But they will soon, unless the Fed is wrong and the economy keeps...

I wasn't saying that much, just what I wrote and nothing more. I see stocks stuck at 1310 for a few more days and bonds going up maybe next week.

Well, that's what THEY're telling me.

Bernanke's comment had the immediate effect of reducing the inflation-risk premium, which in turn supported bond prices. Since yields went down slightly without being accompanied by news of slower growth, there was no reason for commodities or stocks to go down.

What information is fueling the another leg up in crude and gold?

Because of additional factors such as higher commodity prices (including gold) and the possibility of policy changes triggered by the G-7 statements. The real question then is why aren't commodity prices going down?

Bonds are in better shape today, looking at the inflation risk premium specifically. Could be the effect of Bernanke's controlled leak.

Sounds like what we need to stop the inflation premium from building up more.

Exactly, and the bonds-stocks substitution effect could explain part of the difference you detected between cash and futures.

It means they stopped selling bonds to buy stocks because the pit is closed.

Stocks dipped again after bonds closed -- another indication of a substitution effect taking place during the day between bonds and stocks in favor of the latter.

while everybody was sleeping and then it went right back into its small trading range

We had very low volume, with price action indicating that buyers staid on the sidelines. The 30 yr went straight down from 8:00 to 9:55 (CT) and then closed shop for the day. <img src="http://www.elitetrader.com/vB/attachment.php?s=&postid=1056605"/>

That's right, the falling dollar is a big detriment.

What I am specifically waiting for to be confident that bonds can rally is the appropriate bias. A bullish bias is present when markets are quick at brushing off whatever piece of information was first considered to be bearish -- obviously not the case today. Since it takes some time for a...

Very soon but not this week, or Friday at the earliest.

Since your opinion is that we are something like half a point away from an intermediary bottom, I would say so.