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Friday, September 11, 2009

US Stock Market makes new highs

What can I say? The market has broken through all resistance levels. There really isn't "chart" resistance levels anymore. The US stock market can now rally with little reason to retreat......except if reality is recognized. With The USA real unemployment is at 15%, China's exports slump 23.4% in August , US Dollar pressing down to new lows, Oil up 50% in 6 months, the market has rallied 56% in 6 months, the market is rallying hard. You can invest for a market to go back to new highs in six months, but I can't join you.

I took a BEATING on this one. I am in defensive positions, trying to wait to see how high this market goes. Unfortunately, I am of the belief the market will fall harder the higher it goes. The ONLY thing that can stop that from happening is permanent devaluation of the USD. But that will lead to outrageous prices for natural resources.

It seems the recent part of the rally is forming a triangle, marked in hot pink. We'll see if breaking up or down causes the market to jolt significantly. I can't advise going long, but if you must, I suggest gold miners.

From WebSurfinMurf's Financial Blog

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