"Get out while you can"

August 30, 2009

As in the song by the Downtown Executives, "You'd better get out while you can."

Market tops are made by a process. While this bear market rally rose on good news and bad news it kept rising. Now we are seeing the market failing to rise on even better news. (Intel) If the top is not in yet we are too close to be long anymore.

When the market bottomed in March, the news was drastic. Now the news is ecstatic. (We've save the World)!

The fed meeting in Jackson Hole, Wyoming this month acknowledge that last year they didn't see coming what ultimately happened. This year they praised themselves for saving the world.

Unfortunately, they do not see what is coming again.

States and local governments will not have the revenues to meet their obligations.
Unemployment is still rising causing further strain on housing and foreclosures.
Cash for Clunkers has pulled sales forward and is merely a government subsidy which creates more debt.

While I could go on and on, I'll merely say "get out while you can."

This market is at levels which it won't see for years to come.

The dollar will rise from these levels against all odds which will sink stocks, commodities and commodity related stocks.

Deflation is here and is about to reign full force.

Be prepared.