Monday, July 30, 2007

Long Term Equity Perspective

If this were to be a major top in the market, then we would see some major selling by
the smart money before the decline began. Remember the smart money is the blue line at the bottom of the chart. As you can see they are heavy buyers which translates into much higher
prices once this much needed decline is out of the way

Notice also that the Commodity Funds (Green Line) are heavily short.
This is the fuel needed to push the market higher and with these funds at the bottom
of the range it gives the market a bunch of fuel to rally once it gets back to it.

Clearly this chart is saying BUY on any weakness, PERIOD!!!

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