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Sunday, August 8, 2010

This Week's Scary Charts

By now, if you still read my blog, you can rename me chicken little, the sky is falling. Also I have been flip flopping quite much on market doom vs treading water.

But I got to tell ya, the charts today are not pretty. The market really needs a good old fashion rally this week to get itself off of the lower bound area. Friday's weakness was not promising. Couple that with the US dollar about to test a critical level, 80, and the 10 year US treasury note yield rates dropping back to crisis levels.

Its pretty scary out there. I may put tons of stops in, or just go cash. I don't think I can take this playing with fire bs anymore. I know cash has been and will continue to be king, until the USD currency becomes under attack. But I don't think thats in the cards yet. There are too many other countries worse than the US, and if the US needs a boost, it will be time to kick another country to the fire to make the US temporarily look better. First Iceland, then Ireland, then Greece. There is a long parade that has to go by before the finale act.

Good luck to everyone. There is no right play, just a lucky one. This government better announce QE2, or some other idiotic measure to kick the can a little longer. As I previously mentioned, one of the advisors I pay for said get out of dodge a couple of weeks ago.

As I go to bed, I hope I don't wake up to some horrifically lower open. I may sit in cash and only go long gold / gold miner AFTER they break new highs as a sign time to jump in with both feet.



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