Wednesday, June 13, 2007

10 Year Note Looks to Have Bottomed

There is no doubt that the 10 year note broke in the opposite direction of which I had expected, but now there are clear strong indications that this market should have a healthy rally.

Take notice once more in the Blue Line at the bottom, which as we know represents the smart money. This Blue Line at the high for its range shows that the smart money is snapping up the 10 year note as fast as they are offered.

Look to go long!

With the upside counter trend rally Resistance at 408 1/2, we should be looking for a spot to sell short again.

The grains continue to look poised for a collapse!

USEC Corp - Near A Buying Point

Aggressive traders can look to get back into USU as most of the downside targets have been met. More conservative investors will need a bit more proof before removing their bearish hedge and reestablishing their long positions.

The Equity Markets Continue to Top Out

While today was quite an impressive rally in terms of points, the condition of the market remains the same. Equities continue to put a major top into place and thus volatility will continue to be predominant.

It is important to remember that the longer equities chop around and do not break lower, the harder, steeper and faster the decline will be once stock prices do finally break!


Tuesday, June 12, 2007

Doomed Grains

The grains complex looks about ready to go through another collapse in prices.
Short Positions with a Tight Stop of 4.10 would be prudent.

The potential decline could be huge!

Current State Of Equities

Monday, June 11, 2007

Excellent Real Time Example

The current stock market action is an excellent example of a market putting in a high of some significance.

The telling signs are the wide spread swings that have occured over the last 2 weeks. The action today also was a clear indication of a trend shift in equity prices. The market opened weaker and moved considerably lower, only to stabilize and rally in a sizable fashion. The icing on the cake was the late day selling that brought the market negative once again.

This type of action is indicative of a shift out of the strong hands and into the weak hands. The average Joe has become so accustomed to the market snapping back after a brief pause that they are jumping back in with both feet only to have the smart money sell them their positions.

Although I do not anticipate this decline to be the start of a bear market, it does present enough risk to warrant a hedged equity position.

The equity market may chop around over the course of the next week, but the summer as a whole is not going to be pleasant for stock investors.

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