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By Dan Denning

All in all, it seems, the sense of imminent Armageddon has abated.

But we reckon the culmination of all the recent trends is still in place it's just later down the line. That culmination includes a liquidation low for stocks, and a much higher high for Gold Prices.

Between now and then, there will be a spirited battle between inflationists and deflationists, buyers and sellers, and the Fed and Gold.

The psychology of investment has a lot to do with the social mood as Bob Prechter says. The market reflects how people are feeling. Social mood leads the market. Right now, we reckon the market is moody, which means investors are moody. They are weary of losses and would like a return to the good times. Bernanke seems happy to oblige.

What do you need to manufacture good times? You need a lie, a leader, and a crowd. All three seemed to come together last week.

The lie? That the bear market in credit is over, bank losses and bad news are fully priced into stocks, and that the Fed is in control.

The leader? Ben Bernanke. Every revolution needs a strong man, and while Bernanke is an unlikely revolutionary, he's taken the Fed to places Alan Greenspan never dreamed of.

Check out the cover of the latest issue of Business Week and you'll see the striking resemblance between Ben Bernanke and another famous socialist and advocate of government intervention in markets, Vladimir Lenin.

Separated by decades, but ideologically joined at the hip?

Finally, there's the crowd, meaning anyone willing to go along with charade. There are a lot of useful idiots out there right now, willing to buy financials and sell commodities.