THIS IS A CLASSIC DISTRIBUTION MARKET...
AFTER A HUGE AND UNJUSTIFIED RUN UP...THE SMART MONEY WILL "ALLOW" THE SUCKERS TO "GET IN"....AT OR NEAR THE TOP...
DISTRIBUTION MARKETS HAVE SMALL INTERDAY MOVES...AND VOLUME IS USUALLY LIGHT...
PERFECT FOR THE DOG DAZE OF SUMMER...
THE UNDERLYING ECONOMY IS DISMAL AND GETTING WORSE...
THE OBAMA STRATEGY IS TO HANDLE THE BIG PROBLEMS...LIKE HEALTH CARE....AND AWAIT THE "NATURAL" RECOVERY THAT COMES FROM THE DISTRUCTION OF EXCESS CAPACITY...BANKRUPTCY...AND EVENTUALLY PENT UP DEMAND...
OBAMA CAN DO LITTLE TO EFFECT THE REAL ECONOMY NOW... THE MOST HE CAN DO IS SET UP THE STRUCTURE OF THE ECONOMY TO BE MORE SUSTAINABLE .... AND HEALTH CARE IS THE BEST PLACE TO START...
LIKELY THERE WILL BE A PROBLEM LATER HIS YEAR WITH THE FED "MONEY PRINTING"...THE RUSH TO GOLD AND OIL IS A DOOMSDAY SCENARIO FOR THE MARKETS BUT WITH ALL THE EXCESS CASH...SMALL MARKETS LIKE THAT OF GOLD CAN BE "MANAGED" AT LEAST FOR A WHILE..
LIKELY THE NEXT LEG DOWN WILL BE IN THE FALL AFTER THE "RECOVERY" HOPES ARE DASHED BY HARD NUMBERS...
AND OBAMA'S SOCIAL SAFETY NET WILL BE SORELY NEEDED ... LATER THIS YEAR...
THE ECONOMY WILL BE IN TECHNICAL RECESSION FOR ANOTHER TWO YEARS...
ANY "RECOVERY" SHOULD BY WEAK BY HISTORIC STANDARDS...
THE SOCIALIST POLICIES OF WASHINGTON WILL SOFTEN THE BLOW FOR SOME AMERICANS...
UNTIL HISTORY CAN SORT THIS ALL OUT...AND A NEW "POST DOLLAR" PARADIGM ACCEPTED GLOBALLY.
NOTHING OF INTEREST UNTIL AFTER LABOR DAY...SO TAKE A TRIP IF YOU CAN AFFORD IT.
