RED EYE AM MARKET TALK

Market as we have been discussing is at very oversold levels, under normal conditions that would be enough to rally. Yesterdays drop put it more oversold, and the AM futures suggest triple digit decline at the open over? European debt fears.....forget the headlines

A DEEP DEEP GAP DOWN could set in some kind of bottom in first hour, or roil trading all day....I have been suggesting safer tact is to WAIT for uptrend to re-establish if you desire long positions. Even at oversold, TOO many want to call the bottom.

We have serious problems in this country and abroad, and they won't be solved in a day or new decree. IMHO we are witnessing Bear Market action. I do NOT have confirming TA, that always comes after losses have accumulated. IF we were to get signal it would come with little warning as stocks, and lots of TA including new highs etc were being made at recent highs.

That would all change if we consider the rise from March 2009 lows a bear mkt rally, not a primary new uptrend.....Being in cash during these strong downdrafts is equivalent to being short. SHORT carries much risk and timing is difficult, and is NOT for the majority of investors.

THIS far into this incredable recovery, President still speaking of small business credit, sort of like saying after 36 days of 2 M barrles of oil a day seap into ocean....we need to do something...

Just remember what I said, when I said it and compare to any other discussions you have read or heard....I don't need to call THE TOP or BOTTOM, I have been preaching CAUTION for weeks.....

Duratek