TUESDAY PRE-MARKET

Briefing.com reportts that productivity comes in at 2.2%, as it seems to me, UNIT LABOR COSTS are rising as PRODUCTIVITY is falling, is the tech miracle over? should pressure corporate profits.

MOMO for earnings has peaked IMHO, and I wonder if a significant market top is already in? as all indexes appear to have put in a top with small caps leading the way down this time.

ALL bullish letter writers are looking for no more that a correction, meaning buying the dip still applies, STAY 100% invested! This pervasive bullishness exists even though Bonds have outperformed stocks in general last 1 1/2 yr.

Daily sentiment to bonds has now dropped to 23% bulls, with 10 day moving avg still declining, getting NEAR previous low in price (high in yield) also near .618 FIB retrace. Some noted good market timers are sensing this and are reccomending more exposure to bonds.

And what will be the action surrounding todays FED meeting and anouncement? YOU KNOW, to ignore early action and 15 minutes AFTER meeting you wil see true direction....of which we can only guess.

Maybe the idiot who bought BIDU at open, market price at $82 first day is in green, but not to lemming at $153 near yesterdays HIGH and the REVERSAL to LOW of $115 or so, it is a traders market!

KONG dissapointed yesterday and I am glad I didn't play the Chinese connection BUT, I am not sure the LOVE for the fortune cookie is over yet. just look at NTES!! and SNDA.

A break of $284 in GOOG could be significant.

I may begin to EASE into 2 yr 5 yr and 10 yr Bonds today, again, worst I can do is have to hold to maturity, maybe some 90 day t-bills as well. Could sprinkle some high yielding bond funds also that don't hold JUNK BONDS, to add to diversity. I am pefecting a group list, may post in the near future, have been reluctant to reccomend specifics over general commentary of bigger picture.

My main goal is to help you stay on your guard, and see another potential is possible.

We saw new lows expand yesterday, now we watch to see if that trend continues. McClellan is now oversold, so some rally could be possible, but I feel greater market has turned.

We could be near the start of a SOLID metal correction, as sentiment remains near recent top highs, so lots of gold bugs to chew up and spit out before next rise begins. Also SILVER never confirmed golds rise....at some point I agree GOLD will be place to be.

Labor costs rising, energy in orbit, and housing still very speculative, FED in real conundrum......and in this must rise environment IMHO a bad place to be long without nimble feet.

The wall of worry is gone and all out there, what new menace awaits?

EWT explains laest report, Investors Intelligence shows a climax of BUYING CLIMAXES, where new 52 wk highs are made and then a down close for the week.....same as previous market highs, lookout IMHO short term.

SENTIMENT indicators are a traders best friend.

Duratek