Daily Market Comment

EQUITY - Foiled again as the S&P 500 continues its rally phase with a very strong earnings based move. As is always the case, THE MARKET IS ALWAYS RIGHT and my analysis is secondary only. This alone is a very good lesson and one if you learn it early in your investing career can save you a lot of money. While no hedge was put in place as I had anticipated only a minor reaction in the vast scheme of things, it is always a little frustrating when your short term analysis goes astray.

That being said, I am still awaiting a pullback in stock prices to add to existing positions, especially USEC Corp. Once I get strong confirmation that a correction has begun I will post the support levels for the decline. The support levels I had previously posted are no longer valid with the strength today.

10 Year Note - Strong daily signal today that calls for a rally in bond prices. While the intermediate term model continues to suggest a falling bond market, if the 10 year note can be persuasive enough on the daily work then it may be time to establish some sort of position to capitalize on a rally in bond prices.

Corn and Cocoa - No real change in the condition of these markets. Please refer to the previous analysis on these commodities.

Sugar #11 - May yet attempt to test the most recent lows, but the work continues to suggest we are very close to a major low in the Sugar market and a substantial rally is in the near future. Stay tuned to this market for sure!!

Crude Oil - I will be posting a more detailed analysis of Crude Oil in the next couple of days. The gist of which will be why Crude Prices may be on the verge of another sharp decline.

GM - Broke out of its coil today to the upside on decent volume, not stellar volume, but enough to attract attention. Look for first strong resistance at $34 1/8.

DF - Much like the S&P 500, Dean Foods continues to rally strongly from the Three White Soldiers CandleStick Pattern. All of our real time Three White Soldier Pattern examples have done very well and should they come to find support on a pullback to the most logical area it will be an excellent example for educational purposes.

DVSA - Bearish reversal today which helps to support the pullback to 7 1/8 theory.

BDAY - Celebration currently is producing a short term distribution pattern that should culminate with a decline to 7 3/4-8.

I will be posting more Three White Soldier Patterns in the not to distant future.

There will also be a new Educational Module soon that will continue on the theme of reliable candlestick patterns that are not overly used.