Congratulations to those of you who took our advice the first week of July and sold your Mutual Funds from retirement accounts. Depending on which funds they were you are 40 to 60% better off than those who didn't. You now have 100% of your retirement to reinvest when the time is right and it's getting close. For those of you who took our advice and bought Bear Funds, another congratulations. Our recommendation of purchasing SDS on July 17th at 69.50 is a big winner. SDS as of 10/10 went as high as 128.91 and closed at 110.88. By taking our advice some of you have made 40 or more points on the market going down in less than 3 Months. How's that for an annual return? Now it's getting close to reversing the position. We fully expect our forecasted objective of 7,500 on the Dow to be met and then some. But if these markets are going to survive and we believe they will, the Dow will find major support at 7,200. It doesn't matter if it goes through that number for a short time because that's where Big Money will be buying everything they can get their hands on. The problem is the market may not stay down there long enough for you to purchase what we recommend so here is what we suggest you do. As the Dow goes through 7,500 down to 7,200 we highly recommend purchasing Large Cap, Blue Chip Funds to go back into your retirement accounts. If you are able to buy individual stocks we have narrowed down a few that are heavily oversold and will move 10 points or more very quickly. They are BAC, GS, C, SPY, SOHU, ZOLT, GE, MSFT, T, DIA, XOM as long as crude stays above 78.50, HD, UTX and DD to mention a few. SDS and SKF were good buys as the market was coming down, they will be excellent sells as the market goes up. We believe 7,200 on the Dow will become a major base for years to come so just as selling everything when the Dow closed below 11,750, it is now time to buy everything as the Dow approaches 7,200. As mentioned earlier it is possible to penetrate 7,200 and go down to the 6,600 or so level because of momentum but over a very short period of time it will return and close above 7,200. So don't worry if it goes through 7,200. Just look at it as being another buying opportunity. If for some reason or another the Dow opens below 7,200 BUY, BUY, BUY you will never get an opportunity like that again.

The Dow met it's first objective today of 9,950 that we forecasted July 16th. It now has a second objective of 7,500 and we expect to see it soon. Market manipulation by the Govt has caused severe volatility, in other words huge moves up and down resulting in more stop losses in our forecasts, especially in the bank stocks. But that's to be expected in this one of a kind market. The main thing is we didn't put on a trade until we got close to the stop, resulting in very little loss. A classic example of how a trade should work can be seen in the Wheat forecast of 6.50 on 07/16 with 2 daily closes above 9.20 as a stop loss. On 08/21/08 the lead contract on Wheat closed at 9.22 for the day, knowing that another consecutive close above 9.20 would negate the count, in other words low risk, high reward, the trade should have been executed at 9.20 on a short sale. Wheat did not close the next day above 9.20 resulting in a huge profit when Wheat met its objective of 6.50 on 10/02/08. This is the way it should be done. We expect to see more volatility in the markets as more banks go under or are bought out. These are tough times and it's going to get a lot tougher in the weeks ahead.

RTP Ojective Met

RTP count down to 352. Stop loss. 1 day close above 395

BAC, count down to 14.50. Stop 2 daily closes above 34.25
Bulls never want to give up but the Bears will almost always win. The reason for this is because there is very little new money on the Bull side. When the Bulls finally give up they add fuel to the fire and the markets continue down further. Most of the money is already invested so there is very little buying power left. When Big Money sees an opportunity to leave that invested money behind, it will do so. Big Money invests huge amounts by the selling of assets and shorting the market, leaving the average person behind and asking " What happened to my investment"? This is why the market goes down faster than it goes up. Knowing where Big Money is, is the key to successful investing.

Crude Oil, count up to 152 lead contract. Stop, 2 daily closes below 121.60
Euro, count up to 1.62730. Stop 2 consecutive daily closes below 1.48000
For those of you who were unable to sell your retirement funds in the last move up to 11,698 on the Dow, you now have a second chance. Sell all retirement funds and convert into cash or Bear funds. If the Dow closes 2 days in a row above 11,750 just simply reverse your position and go long. You would have left very little on the table. You also would have protected or hedged your retirement for what I believe to be a large drop in the Dow coming very soon.

We finally got our move on the Dow back up to 11,698. I hope all of you were able to sell your retirement funds and convert into cash or better yet purchase Bear funds or stocks that go up as the Dow or S&P go down. We fully expect to see the objective met on the Dow down to its first objective to 9,950. The reason I say first objective is because there is a second objective down to 7,400. Its not quite 80% yet and I'll keep you posted. But make no mistake about it we are in a bear market now. Recent bank failures and more to come, the mortgage crisis, inflation with higher interest rates coming, and the shrinking dollar are not good signs for a strong stock market.

JP Morgan count down to 26.50 Stop loss 2 consecutive daily closes above 43.20
CME count down to 267 Stop loss 2 consecutive daily closes above 346
OZRK count down to 6.00 Stop loss 2 consecutive daily closes above 24.50
Watch the Dow and be ready to sell all stocks and mutual funds as it approaches 11,600 to 11,750. T-Bills are a safe investment. If you can, purchase Bear funds for your retirement accounts or the symbol SDS, they are good investments in a falling market. Remember we will only become bullish on the Dow with 2 consecutive daily closes above 11,750.

Dow count down to 9,950, Stop loss 2 daily closes above 11,750, 80%
Merrill Lynch count down to 20.00, 2 daily closes above 44.00, 80%
Citigroup count down to 11.75, Stop loss 2 daily closes above 21.80, 80%
Lehman count down to 4.00, Stop loss 2 daily closes above 37.00, 80%
General Motors count down to 6.00, Stop loss 2 daily closes above 17.00, 80%
Corn count up to 8.00 on lead contract, Stop loss 2 daily closes below 6.50, 80%
Wheat count down to 650, Stop loss 2 daily closes above 920, 80%
Soybeans count up to 18.00, Stop loss 13.75, 80% Once again it is important to point out when trading any market you should always consider risk verses reward. Never risk more than what you can make on the trade. In other words don't trade in the middle of the count and the stop loss. The closer you are to the stop loss when you execute will be your highest reward and lowest risk. If you have any questions or special needs, feel free to E-Mail me.

Those of you who have retirement accounts in mutual funds should consider selling those funds and purchasing 30 T-Bills if and when the Dow returns to 11,600 to 11,750. It has an 80% chance of not closing above 11,750 two days in a row when it gets there and at that point returning and taking out the previous low which could be the low you are seeing now the week of 07/13/08. It would also be wise to purchase Bear funds that go up in value as the markets go down. So if you get a chance to sell when the Dow reaches those levels I highly suggest you do so. If I'm wrong and the 20% close above 11,750 does occur just simply buy them back. You would then be looking at possible new highs on the Dow, leaving very little on the table but knowing your going higher.

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