The Fed has started buying commercial paper. Presumably this helps account for today’s renewed enthusiasm for stocks.

Companies sold $232 billion of commercial paper yesterday, the most in five years, with 29 percent maturing in more than 80 days, according to Fed data. That’s the biggest percentage on record and compares with a previous high of 13 percent in 2002.

Fortunately, I was lightly long. The clue was the weakness in the yen, which turned into pervasive weakness for the dollar during the course of the day. This could mean that the liquidation selling is mostly over. So then, the US dollar should go lower, bonds lower as well, but stocks and commodities should go higher. Although not in a straight line. But the weakness in the Canadian dollar is not helping my numbers and some rally there would be more than welcome. By Friday, please, so the monthly exposé is not so embarrassing. All you sideline sitters who report monthly numbers, you could be helping instead of just sitting there, you know.