Sell The Rallies

Sell The Rallies

The short rallies in the INDU and the SPX are still being sold at every resistance. The market is having serious issues retaking the 13,000 mark even with the dollar falling more and more every day. The last time we were under 13,000 it lasted 3 trading days. This is a bear market.

I would like the stock market to go up just as much as every body else, but this is the time to listen to the market and protect your capital. Get short, buy puts, buy gold, yen, and the euro. All of the currencies are overdue for a consolidation before another downside move, but I am now convinced that the dollar will fall to 100 yen in the next 6-12 months.

The dollar is now at a 2 year low against the Yen.

Wheat is up the limit today to 800 cents per bushel, and soybeans are down 2.5 cents at 1084.5 cents per bushel. These numbers are not deflationary, especially with gold staying near $800/0z.

I expect gold to rally into the end of the year on concerns about the dollar, a weakening U.S. economy, and the fact that many large purchasers of gold will be taking delivery of the physical gold. I expect this to cause short covering in gold going into the DEC contract expiration on December 27th.

Protect your capital!!!!

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Have a Happy Thanksgiving