WHERE ARE WE?

Planned Layoffs Surge in July: Challenger- Reuters
The number of planned layoffs at U.S. firms rose to a 16-month high in July as sectors which had been seeing fairly few layoffs unexpectedly bled jobs, a report on Wednesday showed.

Another bearish sign as employment is the key component to any recovery.

Yesterday registered another 90% plus down volume day, the 8th or 9th this year! It came on SURGING VOLUME, was this a PANIC LOW? Market is short term oversold, the quality of any rebound will serve as a clue for what may lie ahead. NO debt ceiling deal rally is bothersome. World markets are spinning downward, including Europes largest economy Germany, theDAX falling below its 200 day moving average.

Surging volume on Tuesday SHOULD open door for a few days of rally, but end of week data on employment may make that difficult if above article is a clue.

GOLD soars to new highs as fear of crisis and currency in general feed it. So will Federal Reserve "step in again" to stimulate economy? How has that worked so far, few jobs and fueling inflation negate ANY good it may do. Bullishness towards bonds is lopsided. Swiss currency rallies to new levels.

You can be technically SHORT the market by being in cash. I am warning, and have been of potential for the BEAR MARKET to take hold again. Stocks and commodities are the 2 assets not deflating.....well maybe make that the metals....a deflating stock market may bring unexpected rally in the good old greenback.

Duratek