THERE'RE HERE

We are looking for several technical events to mark the next material reversal moves in the markets. We think we are very near these inflection points. They will be measured by big gaps to the upside in interest rates....we are watching TBT and TLT.
We also expect a break out to the upside and new highs in GLD joined by leadership of gold equities shares of AUY, ABX, CEF and ASA. We think it is probable the US Dollar can make dramatic new lows with the constant dilution by the federal reserve bank in monetizing the debt. Watch UDN and leadership currencies like FXC and FXA. Super blue chip global equities will do fine after the initial sell off. We think USL (OIL) looks higher as well. Petro dollars flying around the world is great for the financials in general, KBE looks interesting.

Just like Private equity hit the wall in the summer of 2007 and technology/ telecoms did in the spring of 2000 markets can be picked off in hindsight to just a few days....

A year from now people will be bragging again about real estate....as it will be viewed as an inflation hedge....a hard asset "People want something they can look at and touch in their evening, rather than a piece of paper in the bank."

Bloggers recently peg national debt growing at 1% a month. We think it is higher but lets take round numbers....for this example. Our economy is not growing 1% a month....so if our liabilities are.....than something has to give.....the printing presses are working overtime....the dollar is being diluted at this rate....so if annualized at 12% a year in debt creation then gold year to date up 8.21% (in US Dollar terms) is right on track! Of course it is up higher in non USD's. Once new prices up and down are obtained traders, computers and investors will chase the new gap and run it higher....or lower.

The gloves come off starting tomorrow when September kicks in and the run to year end begins....most short plays have been exhausted, margin levels are back up and we have very high relative cash levels to work with...China continues it's over bought correction (a positive). The US markets lagging the rest of the world are the cheapest and best.

Mid terms will stop this current congress in their tracks and they know it now......

Focus on companies that can increase prices on their products and are not subsidized or controlled by the government.

Bio fuels, ethanol, wind farms and solar.....all sold for loses are of course floundering....just like all businesses that don't sell for a real profit...anything subsidized by the government always losses.

Foreigners have stopped buying our treasury debt, the day of reckoning is near...the fed can only support the biggest manipulated bubble of all time the federal spending programs.....we don't invest in broken business plans or overly indebted balance sheets...nor do other successful smart investors around the world.

Danny Boy seen here collecting/ storing more tennis balls.