THE GAUNTLET HAS BEEN THROWN!

Will the market ever rest? Will the dollar ever stop falling? Will Gold be $5000 an ounce?

It's kinda amazing to me that there is so much hoopla made over the market rally, yet no one seems to really care that the dollar is falling faster then the bionic man can run.

There is an inherent problem with this scenario and frankly it's a very ugly problem that will probably haunt us for a long time to come.

I suspect that the dollar will get a pretty sharp reversal, and I intend to buy it come Oct as this type of move post window dressing should reverse pretty hard in a squeeze. It may not last that long, but it should happen.

Either way, this type of move does not bode well for any market in the long run. At the beginning of the year I said the only thing that would save the US equity markets was a very weak dollar and that's exactly what's unfolded. The market was in freefall and the Fed stepped in and started the printing presses. And, yeah, the markets stopped falling, but at what price? And, while I am happy to take money from the markets (been a KILLER sweet week!) due to a huge bubble, I find it disturbing that we are celebrating the death of the dollar. I also worry that the move is premature, meaning that its almost like a sprinter horse stretching out to a mile and a half race. He or she can dominate and open up 12 lengths early but inevitably has to fade VERY fast late. How high this market can go is unknown, I said it could see 1150 on the S & P, but honestly it's anyone's guess and in this market it doesn't pay to fight the tape, just go with it until it reverses and then go the other way. Anyone trying to pick tops here has been run over. At some point that will be the right play, but for now I prefer to go WITH the market, not against it.

Watch for PIN ACTION here and Friday as I discussed in my class Wednesday night. I hope you guys and gals enjoyed it, I enjoyed teaching it.

I'll post another one right after this if I can stay up, in the meantime, as I said yesterday and been saying, this market has a nice floor under it called Window Dressing. Its unlikely we get a huge pullin until (if we do pullin ever again!) after the end of September. So, stay the course, use proper money management, definately fade the GAPS (its working brilliantly!) and stay tuned for more classes upcoming!


Oh, I'm now on Twitter as - REALWAXIE, sign on and follow me!

RULE!

Waxie