Stay Long--GDP figures due this week-buy any sell off?

Stay Long gold, Stay long the Dow.

Quotes:
Dow 10900!
FTSE 5637
eur/usd 13477
gbp/usd 158277
Xstrata 1235!!
Gold 1295!

Gold currently at 1295, having touched 1300 briefly on Friday, the Dow currently at 10900, to target 11000 tomorrow, or Tuesday.

Stay long gold, currently at 1295, Stop at 1270, Target 1330.

GBP/USD currently at 15828, to target 16000. Trade: Buy 15828, stop 15700, target 16000.

Stay long the Dow, having opened at 1040, currently at 10890, I think an ideal place to look to add to your long would be around 10830 or 10802, on any minor sell off, With a 10700 stop, target 11200, to hold for 1-2 weeks.


The hedge:

This is how I am going to hedge my beta risk. Short Crude, currently at 7680, stop at 7727, open trade, no limit.

Market brief overview:
Why is the market rallying? The question it seems should perhaps more be alligned to why has the market been ranging since May? No matter how bearish the news has been, the Dow has been supported at the 9700 level. Having broken resistance at 10400, and now 10840 next stop is 11200.

Following a GS conference call the suggestion is that further QE is likely, from Bernankes recent statements, and that announcement of this will not take place til Novemeber.
Regardless, this is what I'm looking at. The big question everyone is asking is deflation or inflation?

Arguements for inflation: QE, money printing, commodity prices go up, stocks supported by low rates environment (as high unemployment make it impossible for anything more than a trivial 0.25 rate increase in near future).
Recent rally in Gold , Silver (at 21.40, reaching a 30 yr high)seem to imply that this is the favoured view.

Arguements for deflation: The private sector is still deleveraging, loss in notional from US house prices greatly outweighs supply of dollars from QE, 30 yr bond market bull trend still in tact, hence long dollar short stocks short commodities.
US 10 yr yield at 2.60%, is this a shorting opportunity?



Regardless of the "fundamentals", if the yield on 10 yr US Treasury's (currently at 2.60%) does not break below the lows of 2008 (around 2.08%) and manages to form a break out here, I will be backing the inflation trade. If they break below I will be backing deflation. As I am of the opinion that it is a critical juncture.

However inflation or deflation, Gold had rallied during deflation in the 1930's, as well as inflation/stagflation during the 70's. More importantly a negative real interest rate environemtn such as that at present is likely to support Gold.

US GDP due for release on Thursday, market likely to anticipate poor results, and sell off 50-60 points before release, I would be looking to go long the result, as well as long any sell off in the case off a worse than expected result.