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Weekly Newsletter

U.S. Debt Clock http://www.usdebtclock.org/ tick....tick....tick......tick.....BOOM!

How much further in debt are U.S. Tax Payers?

RECAP FOR THE WEEK OF: July 5, 2010

Hold over from last week --------------------------------------------------------------------

EXPLOSIVE is the key word again for this week with regards to Mother Nature and the Financial Markets. The word UNEXPECTED is at work also.

Nice chart at the Wall Street Forecast showing the "Once in a life time astrological event" we are dealing with, and which is centered around July 23-August 8 time frame. http://wsf.typepad.com/

Bradley cycle is showing a dip into July 12th, rally to Aug 10th, then down, down, down. Or, maybe it will be July 7th: Gann 07/07/10 reversal date is 90 trading days from the secondary low in Feb. 2010, about 180 trading days from the Oct 2009 High and 270 trading days from the June 2009 High.

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S&P 500 -- It fell below 1040, and activated the Head & Shoulders pattern. The next target would be 875, but I am not expecting it soon. I see a rally this summer, and it could start anytime betwee now and 7/23. Of course, with the "UNEPECTED" AND "EXPLOSIVE" influence currently in the markets, anything is possible. A sharp drop this week or next, and then a rally? That is possible.

Treasury Bonds -- Demonstrating a pattern often seen as a final thrust in a rally. Look to exit.

Gold -- Looks like we are going lower. Drop below 1180 is a definite sell signal.

Remember, the full extent of this economic depression is still to come, and it will be here befor April 1st 2011. Personally, I have a bulls-eye drawn on the Oct-Nov time frame.

Uranus turns retrograte on July 4th. It is responsible for much of the "EXPLOSIVE" and "UNEXPECTED" influences I have mentioned the last two week. It is now at its strongest. Wild price swings can be expected.

Gann reversal date: 7/7

Follow-up -----------------------------------------------------------------------------------------------------

Our reversal date of July 1 & 2 worked out nicely.

With both the 1st (Thursady) and the 2nd (Friday) finishing down, it was a perfect opportunity to purchase some Calls. Per our rules to buy the option between $1 and $2, the OEX Jul10 485 Call would have been your pick. It closed at $1.80 on Friday, hit a low of $1.20 on Monday (still above out 50% stop) then made its high at $7.80 on the 9th (Friday).

S&P 500 -- Well, we did get a rally. And, once again we saw Wednesday as having the largest gain.

Treasury Bonds -- I said "look to exit." Appears that was the right strategy.

Gold -- Gold went lower as predicted.

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FORECAST FOR THE WEEK OF: July 12, 2010

Hold over from last week --------------------------------------------------------------------

EXPLOSIVE is the key word again for this week with regards to Mother Nature and the Financial Markets. The word UNEXPECTED is at work also.

Nice chart at the Wall Street Forecast showing the "Once in a life time astrological event" we are dealing with, and which is centered around July 23-August 8 time frame. http://wsf.typepad.com/

Bradley cycle is showing a dip into July 12th, rally to Aug 10th, then down, down, down. Or, maybe it will be July 7th: Gann 07/07/10 reversal date is 90 trading days from the secondary low in Feb. 2010, about 180 trading days from the Oct 2009 High and 270 trading days from the June 2009 High.

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It was an up week for the major markets. For the week the Dow Jones Industrial Average gained 511.55 points or 5.28%. The Standard & Poor's 500 Index gained 55.38 points or 5.42%, while the Nasdaq Composite gained 104.66 points or 5.00%.

Last week's rally is suspicious. It had all the earmarks of short-covering, and let's not forget the 50-day MA has crossed below the 200-day MA. I am still looking for 875-850 for the SPX.

Expect a move higher Monday in the SPX to the 1085 level as traders drive the market higher in anticipation of the earnings. Of course, earnings may look good compared to last time, but the real key here is revenues which I do not expect to be anything to write home about.

Friday looks like it may be the big mover this week. If not, then Thursday.

Subscribers have been alert to what action to take this week.

Some stocks are starting to show reversal candles. Selling is likely as the week unfolds..

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