08/12/2010

08/12/10
After reaching a new high in this cycle of 10,719 the DOW has met some supply and is having a small correction. BIG MONEY is not behind it so the downside is very limited. We do not expect for the DOW to go down to the last level that BIG MONEY supported the market which is 9,600 range. BIG MONEY doesn't buy everywhere to support their long positions. They wait until the market needs support for their long positions and then they buy, not until then.  Other factors move the DOW in between BIG MONEYS support and resistance levels. Selling from John Q Public, for what ever reason, in the middle of their trading range doesn't faze them one bit. Stay invested with your retirement accounts in Blue Chip, Large Cap funds or if you haven't already bought some of the individual stocks we mentioned 07/08/10. The DOW is not through to the upside. BIG MONEY dictates when it's through and they haven't yet. Bonds which normally move in the opposite direction as the DOW are overbought and due a major correction. The 30 year Tbond contract is at 131. Resistance is 133 and 138. You could see a lot of money coming out of bonds and into stocks very shortly. We continue to like TBT for the Tbonds down move coming. We also like Silver at 17.50 and we will buy quite a bit if it gets there.
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