Recess Is Over

We have been looking for the mid cycle market top and we got it starting today. The easy money has been made for the year. Hedge funds now will close the month out this week and scramble to secure gains from the recent dramatic global market rally. Santa came very early this year.

It is text book perfect all the hedge fund computers keep buying until the trend line breaks then they sell the longs or short the stock, index or ETF. This market is due for a nice rest after going straight up for five months.

Start watching closely for relative strength. Everyone is discounting the price of oil, gold and natural gas....the best performers today as we hinted at last week. WMB looks to be a five star holding for the next two years...our largest..Real estate will be stronger than expected next year.

China: If their markets get caught up in this correction....by ready to jump all over their shares...at least the ones you can buy...it is still a pretty thin market...EWH and FXI will do.

The potential cold water on this economy and stock market is Nancy Pelosi and her fraternity of out of touch protectionists and nationalists promoters...The middle East will not help. If taxes go up the stock market will go down...pretty simple..

Barkly seen here knows when recess is over.....sometimes its hard for him to wake up.