Some Information

If you haven't read Friday's After Market report on Trade-Guild, be sire you do before Monday morning. I also posted just now some neat ways to use the TICK and TRIN indicators to tell which way the market is heading both short term or intraday and on a daily basis. One indicator will actually tell you with a high degree of accuracy, which way the market will close the next day; I'd say about 85% accurate when it gives the signal I described. So check them out.

As for the trading week ahead, you need to do all you can to set yourself up to be able to hold positions long term, not that the market won't dive next week, it might, but the point is, the market direction is pretty much a foregone conclusion as far as I can tell and the post from yesterday afternoon explains why. The economy is stuck between a rock and a hard place and it is falling like a rock. The GDP report may be one of the biggest news items and most under-rated that we have seen in a long time. In 3 quarters we have gone from 5% to less then 2.5% and all of the stimulus is draining out of the system, there isn't much room to add more so double dip? Ohhhh. This next dip could be more lock a DROP in contrast to the first. The government and Fed have put themselves into a Chinese finger-trap and the more they try to do, the worse things become.

With all of the tx credits on homes, and other tax credits, the stimulus, all of the Fed measures, this economy can't hold more then a single quarter at 5%. To put that in perspective, to drop the unemployment rate a single percentage point, we need 4 consecutive quarters of 5% GDP readings, we're down to half of that in 3 simple quarters and while they may try to sell it as the economy has slowed, not a single one can say it won't go back into recession because not a single one saw this slowdown coming, not to this magnitude. And the upward revision of last quarter only makes this quarter look worse!

This is why we have been net bearish, it's all there in the charts. It's been there for a long time, even since before we took our first dive and as proof, I'd direct you to my 5-part You-Tube video series about "bubbles in the economy where I set targets that are much much lower then where we are at and keep in mind, THIS WAS WHILE PEOPLE WERE STILL CALLING FOR DOW 20,000!

Be ready, keep your eye on the ball because the prize follows it. Don't get worked up over volatile up days that don't mean a thing.

Watch for my post tomorrow.