PM MARKET WRAP

There is potential Head and Shoulders forming, I had been watching and my buddy SSK had emailed about today. Right shoulder is near 930 ish.

What this means, if this forms and then prices go below neckline, good chance prices fall to near 800 (subtract distance from neckline to head from neckline breach)

It is hard to tell anything from the action, when manipulation is the rule of the day. Todays rally came on putrid slow volume.

I don't know if it's a one day wonder. I just know we are still waiting for a real recovery and the more they do to facilitate one the longer it may take.

I think the rally is better served letting go the real laggards in a portfolio, build some cash. I am 100% cash at this time.

Smart enough not to short the market here, and around usually jiggy FED meeting, timing for this anyway is rather difficult.

I know some calls recently to do just that and were stopped out with loss in those short position.

The avg investor should either be IN during a BULL MARKET or OUT during a BEAR market IMHO. Buying dips in a bull, usually pays off.

1980-2000 BULL, that is what most remember. FED induced recovery in 2002-2003 gave us a 2003-2007 Bull....NOW BEAR AGAIN....same mechanisms in 2003, goosing economy, real estate.....cannot work again but OH they try.

What a bleeped up mess this is folks, not a voice of reason in adm or congress to sort this out

D