* We had some wild swing in the market today, particularly the stock market and the gold market

* At one point this morning, the Dow Jones was down about 270 points

* It finished the day up 53 points

* There wasn't any real news that caused the market to go up; people were buying the dip

* The oil market also turned around; it was down a buck and change and managed to close up .20-.30

* Gold was the mirror image; gold was up at one point to $27-$28, back above $1250

* Then when the stock market rallied back the gold market sold off

* It managed to closed with a small $3 gain or so

* Gold stocks closed the day mixed, most still positive on the day

* The reason why the stock market falling is positive for gold is the effect that a falling stock market is going to have on the Fed, and its decisions on future interest rate hikes

* Even if the stock market is not going down, the Fed will still reverse on rates because of the economy

* The economy is back in recession, whether the Fed wants to acknowledge the fact or not

* We had another Fed official, Richmond Fed President Jeffrey Lacker, actually came out saying he sees no signs that a recession is imminent

* He sees no reason why the Fed should not go forward with the planned rate hikes for 2016

* Maybe rose-colored glasses are standard issue over at the Fed

* There is ample evidence that there is a recession

* However, if someone of Lacker's stature would come out and say, "Look, we're going into a recesssion, but rates are really low and the Fed has to raise them anyway, and this is going to be difficult." That would be honest.

* But the Fed is saying they are going to raise rates because the economy is in great shape

* To do otherwise is to admit that the Fed's monetary policy failed

* The Fed is playing a very dangerous game

* Not only do they risk making the economy worse, they risk their credibility

* Here is some economic news that came out today, after Lacker's speech

* At 9:45 am we got the February PMI Flash  Services Index

* Last month, the number was 53.7 and this number was expected to repeat for February

* The February number came out at 49.8! This shows that the recession is not contained to manufacturing

* This reminds me of what they said about sub-prime: "Don't worry about it, the recession is contained to sub-prime." - That was nonsense and it is nonsense now

* The problems in the economy are not contained to manufacturing, and today's numbers prove it

* The service sector contracted in February

* The last time this happened was in October of 2013. That was during the government shut-down, so a lot of government services were not available

* That's an outlier - if you take that out, the last time we had a service sector PMI below 50 was during the great recession

* So again, another indicator flashing recession

* It's amazing to me that the Atlanta Fed still hasn't walked down their 2.6% forecast for Q1 GDP

*  We've gotten so much bad news since the good news that prompted that forecast yet they've done nothing to downwardly revise their estimate

* The FOMC might have said, "Hey, Atlanta, get with the program! We're talking up the economy - stop coming up with these negative forecasts."

* On Friday, we're going to get the revised Q4 GDP numbers, which was originally reported as +.7

* I think it will be revised down, in fact the consensus is a revision down to .4

* So we're getting closer and closer to zero

* The numbers we're getting for the first quarter could be worse, despite the Federal Reserve's rosy scenario

* Also we got New Home Sales, which was a disaster; they were looking for 520,000 and we got 494,000 - that was a big,

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