Alfred Goldman, the wise old sage of the former brokerage firm called A.G. Edwards and Sons had a saying that I always liked: "It's not the snake you see that bites you, it's the snake you don't see." He wanted to warn customers that we can easily become distracted by all the noise, all the "talking heads" and myriad opinions and miss what is really going on.

So I have a question for you. Do you still think the stock market and the precious metals markets are an orderly, auction-based market that responds to the forces of "modern portfolio theory" and the best interests of investors?

Another question might be: Since we made it through the scariest months of September and October with not much damage to the DJIA, the S&P 500, the Russell 1000 Financial Index (symbol:RIFIN) and the precious metals markets, is it "up-up-and-away" from here?

Our most followed Seeking Alpha contributor David Fry had an interesting comment in his Friday Roundup:  

"RBS economist Stephen Stanley wrote today's employment report was "a mild disappointment". It's easy to say with his firm and others, plied with cheap money from a generous Fed. And, that's really the issue. The liquidity bubble for Da Boyz is creating a stock bubble. Like all bubbles it will have an ugly end. But with cash and bond yields low, going for higher returns in equities is an easier; "make hay while the sun shines" choice. So, spin bad news and go for returns in stocks."

Once again we see the underlying reality that what we see and hear about the economy and the stock market doesn't necessarily correlate to why stock prices or the price of gold goes up and down. For now, keeping interest rates low and creating the myth that the stock market or the precious metals market can't suddenly and dramatically fall, is working it's magic.

I keep my eyes on companies like GE, Proctor& Gamble (PG), Boeing (BA), JPMorganChase (JPM), Goldman Sachs (GS), Google (GOOG), Apple (AAPL), Chevron (CVX), Exxon (XOM), Chesapeake Energy,Dupont,NYSE Euronext, Barrick Gold and Freeport McMoRan Copper and Gold. I want to see the hourly and daily volume, and what appears to be driving each of these very popular stocks.

Listening to the Spin Doctors on CNBC or Bloomberg, as well as the interviews that are often available on Yahoo! Finance gives me some idea of the prevailing consensus and "schizophrenia" that drives the emotions of the investing public. No wonder so many people are confused and turn to actors like Jim Cramer (although he is a very well-connected Goldman Sachs alumnus) to try to make sense on current market conditions.

Having read the books of the late Richard Ney, I continue to benefit from the monthly reports that are posted by my friend and "Ney student" Richard Wendling at The Bear Facts Specialist Report (www.bearfactsspecialistreport.com).

Ney and Wendling have reminded realists and seekers of truth to keep their eye on "the ball" and to know what "the ball" actually is. These reports help us to see the market forces and the Smart Money from a unique, historical perspective.

Legendary Hedge Fund Manager Kenneth Gerbino of Beverly Hills weighed in on the current misunderstanding on the markets in an interview he gave to the Mineweb.com. I thank them for allowing me to share it with you, and I'd encourage you to get their free daily report. Mineweb.com is the world's premier mining and mining industry report.

 "The financial crisis is now a year behind us and so far with very little inflation (which won't last long) it is unusual for gold to be acting so robustly. Usually when one sees a stock or a commodity going up when most of the usual reasons for its normal price behavior are absent, it signifies new, powerful and unknown force(s) have entered the marketplace.

There are four new forces that were not present in past cycles:

1&2) Central Bank and Sovereign Wealth Funds buying bullion discreetly and in an orderly fashion. With the recent Indian purchase of 200 tonnes of IMF gold this force is now out in the open. The fact this was not done covertly and undercover is very unusual. It is also very bullish, as it implies that other central banks are going to be doing the same thing.

3) Financial Institutions and money managers who have never invested in gold are buying gold as a small percent of their portfolio as pure monetary insurance. These three buying forces should be long term and steady investors. They will not be price sensitive buyers. They will look at gold for the long term in a way that quarter to quarter performance conscious money managers or traders do not. They will buy gold as insurance against the follies of governments including their own.