Monday's close

Monday's close on the S&P should be very telling of which way the market will go. Keep an eye on 1070, which should prove to be a key level. If the market closes above 1070 then we should prepare for a bear rally to the test the downtrend. Amazing how the downtrend line, the 150 moving average and the fibonacci retracement levels all meet in the same area.

Last week I wrote on one of my postings that technically the Nasdaq would lead the markets into this bear market rally that I'm anticipating. I started buying SPY December 60 puts at .60 last week and I will continue to add to this position. I got some interesting comments, form some followers. The fact that the Nasdaq rarely leads is true. The fact of the matter is that the Nasdaq looked bullish and remains bullish until the pattern changes. It closed on Friday above the 200. Worth keeping your eye on it. Gold continues it's march upward to the 1260 target I posted earlier (see archives), Oil looks like it is headed for 65.50, the USD is headed for 92 to 93 as the euro continues to collapse. For those of you that don't trade futures you can take advantage of all the markets by using ETF's. Hope it helps

It's truly amazing how the dollar continues higher and gold continues as well... The message is loud and clear - the deleveraging process is in overdrive as credit is being destroyed, real estate will continue to drop both commercial and single housing...