I would like to think that the world has changed in 30 days, and that the energy and commodity bull market we have experienced the last five years was a mirage, but like I said in August when oil prices were nearing $80/bbl, a pullback in energy was expected going into the mid-term election. What we are experiencing right now is the full impact of the "Magic."

The demand side of the equation has not suddenly disappeared. The industrial revolution taking place in China and India has not come to a halt. As the old saying goes, "A thousand men can be swayed by their prejudices faster and easier than one man can be persuaded by reason".

The truth of the matter is investors are being whipsawed by the sudden decline in energy and commodities once again. We saw it in 2002, in August 2004, in May and October of 2005, and again in May of 2006.

As these past corrections took place, I watched momentum managers of mutual funds sell energy at the bottom, only to buy the stocks right back again at the top.

There are three area's that we would like to focus on; energy, gold, and commodities.