THE BEAT ROLLS ON

A 175 point DROP with high volume, didn't even raise a BULLISH eyebrow. As we immediately reversed direction and gobbled up the point loss......as if it never occurred.

We are coming into a high as the turn window approached and extends thru next week, will it still be valid? Could it be a FINAL high of correction of BEar Market which began in 2002-2003?

70% of our debt being swept up by foreignors, mostly Asian. We're selling out, and they're buying. When this musical chairs ends for any reason, the dollar collapses and the Trillions $$$$ of bonds they bought begin to gwet sold, rates would skyrocket, worlds economies would collapse. But I have NO idea why they would stop playing....or when.

Home builders make new highs, energy stocks make new highs, steel makers new highs. Was everything PEACHY at the 2000 top? Did it look brightest right before things changed.

McClellan OSC is back positive again, it will be important to see how long it lasts, and where the markets go while it is.

AT ANYTIME the music can stop. But the liquidity the FED is pumping is mind blowing.

But don't discount the TIGHTENING, and what effects it WILL have on stocks. Earnings will begin to slow, the Punch Bowl is being drawn away even as the Punch is kept flowing.

Richard Russell agreed with me when I suggested PDG and DROOY diving (gold shares) proved you MUST DIVERSIFY when investing in ANY SECTOR IMHO, it helps to spread risks.

Many are living week to week, but as long as credit is available, the spending seems endless. AS we rise evermore to new historic highs in this CREDIT EXPANSION WAVE.

I believe actions by the Fed have extended the K-Wave and put off the arrival of Winter, but it will come.

Duratek