Market has acheived its objective and is overbought

The rally has progressed 500 points in the span of the last 4 days with the falling dollar leading the way as the Fed ends QE 2. It is hard to know what these weasels will do next but I think it was accomplished two purposes. First it ran the shorts and was great window dressing for the end of the quarter. It put the indexes about even with where they were at the end of March. It also let every trader know who is still in charge of the markets. I still think they want lower oil prices and interest rates.
Mikey


Closing Prices

US Stock Indexes
DJIA 12414.34 +152.91 S/P 500 1320.64 +13.23
NYSE Comp  8913.10 +90.60 NASDAQ 2773.52 +33.03
S/P Midcap 978.64 +6.41 Russell 2000 827.43 +7.51
DJT 5423.82 +67.65 DJU 433.48 +2.19
US bonds and interest rates
US Gov rates: 6 mo .1017%  2 yr .4501% 10 yr 3.15 30 yr 4.36
IEF (US10 yr) 95.92 -.27 TLT (USLT) 94.11 -.13
MUB (NatlMuni) 103.51 +.13 CalMuni (NCA)8.83 -.05
HYG (High Yield) 91.52 +.82 PFF(Preferred) 39.66 +.16
BND (Total Bond Mkt) 81.17 +.15
Commodities
Commodities Indexes (DBC)29.17 -.10 (USCI )63.71 -1.22
Gold 1502.80 -7.40 Silver 34.81 +.06 Copper 4.27 +.06
Platinum 1724.80 +1.00 Nickel (JJN) 34.42 +.72  
Oil 95.42 +.65  RBOB 2.96 -.05  Nat Gas 4.37 +.06
Grains (JJG) 46.21 -3.69 Livestock (COW) 29.26 -.34
Cotton (BAL)74.29 -1.34 Agg complex(JJA) 57.06 -3.29
US Dollar Index and World Currencies
Euro 1.4452 +.0071 Pound 1.5938 -.0013 Swiss Franc 1.1778 -.0073
Yen 122.56 +.0052 Aussie 1.0762 +.0051 Can$ 1.0313 +.0069
USD Index 74.42
World Debt markets
BWX(Intl Treas)61.77 +.10 PCY(EmerMkt) 27.10 +.02
IBND(Intl Corp) 34.98 +.05
All Markets Current Trends

World debt markets
US Bonds: 6-29 current trend neutral
US Natl Muni Markets:: 2-18 current trend up

Intl Treas Bonds 6-29 current trend nuetral
Intl Corp Bonds 6-29 current trend neutral
Emerging Markets Debt: ..3-24 current trend up
US High Yield 6-30 current trend down
US Preferred Stocks 6-30 current trend down


Commodities
Commodity index (Broad based) 5-5 current trend down
Gold: .6-23 current trend down
Silver: 6-3 current trend down
Copper 6-29 current trend up
Platinum 6-15 current trend down
Palladium 6-23  current trend down
Nickel  5-6 current trend down
Grain complex 6-6 current trend down 
Sugar 2-23 currevt trend up
Cotton `4-25 current trend down
Livestock 6-21 current trend neutral
Coffee 5-11 current trend down
Lumber  3-29 current trend down
Agg complex 5-2 current trend down
Oil :5-6. current trend down
Gasoline 5-16 current trend down
Natural Gas 6-20 current trend down

World Stock markets
US Stocks: 6-30 current trend down
Europe 6-6 current trend up
China: 6-3 current trend down
Brazil 5-4 current trend down
Japan 5-13 current trend neutral
India 6-30 current trend neutral
Russia 5-4 current trend down
Emerging Markets: .6-30 current trend neutral
Total world markets 6-3 current trend neutral

Currencies markets

US Dollar Index 6-15 current trend neutral
Aussie Dollar 6-30 current trend up
Euro 6-29  current trend up
Brit Pd 6-16  current trend down

Swiss Franc: 2-17 current trend up
Jap Yen 4-26  current trend up 
Canadian Dollar 6-30 current trend neutral
Mexican Peso 6-30 current trend neutral
Brazilian Real 5-27 current trend up

Indian Rupe 6-30 current trend up

Trend changes:
Currencies Rupe to up from neutral, Peso to neutral,  Aussie to up from neutral
World stock markets:  Total world to neutral from down, US to Neutral from down, India to neutral from down, Japan to neutral from down
Commodities:
World Debt High Yield to neutral from down, Preferred to neutral from down

US Stock Market Trends
Mikey Short term down 6-1  
Mikey Intermediate Trend: Up 09/03/10 10477
Mikey Long term trend: UP 10/13/10 11052
Mikey current trend opinion: 
Mikey: 6-30 NYSE Current trend neutral 12414
Mikey: NASDAQ 6-1 Current trend neutral 2773
IBD : 6-1 Market in correction 12290
Stock of the day:

US markets short term  technical trading indicators:

Mikey Overbought/Oversold Meter (-80 oversold 0 Neutral  80 overbought) 127

VIX (OB 10 - OS 40) 16.52  VXZ 50.35 Mikey OB/OS index (80 OB 20 OS) 94
Put/Call Ratio(.6 OB 1.2 OS) .99 10 day average  .92
Ratio Put Premiums to Call Premium (..34 to 2.5) .81  10 day ave 1.07
Mutial Fund  Purchase/Redemptions ( 1.5 to .66)  1.19   
Williams %R 12 day 3.11 Weekly 46.03
Bulls 39.8   Bears 26.9  Bull/Bear ratio 1.48
Mikey Thrust indicator: Daily 10 Weekly 5  (1 low, 10 max)15,5
DJIA MACD --36.73 Rising /Positive cross 6-21
Weekly MACD +172.50 Rising/ Negative cross 5-16
NYSE New Highs 120 (12/7 429)  New Lows (1-14 152 )12
NASDAQ New Highs 103(12-7 352) New Lows (6-10 162) 35
Advance/Declines
Daily NYSE Advance-Decline +1392 NASDAQ  Advance-Decline +1064
Daily Mikey A/D line NYSE (5-31 33958)+33560  
Daily Mikey A/D line NASDAQ (2-18 10095) (6-13 -2188) +1979
5 day AD NYSE +4654  NASDAQ +2783 NYSE..(OB +4000 OS -4000)  
10 day AD NYSE +7629 (6000 OB -6000 OS)
% above 200 day ave (6-13 47%) 63%
 below 50% indicates intermediate trend may be changing
Days to option expiration 13

DJI Moving Averages
5 day 12167  Rising/Price above
20 day 12079 Falling/ Price above
50 day 12372  Falling/Price above
90 day12282 Falling /Price above
200 day 11801 Rising/Price above
20 week 12286  Falling /Price below
50 week 11543 Rising/ Price above
90 week 11022 Rising/Price above
200 week 10795 Falling/ Price above

Comments:
5-31 IBD and Mikey current trend up
6-1 Whipsaw selloff 10 yr rates 2.96, 30 year to 4.15 6 month lows. Economic weakness story being told for the first time High Yield falling apart indicates credit quality problems coming
Mikey and IBD current trend down
6-3 Bad jobs number story turns decidedly negative
6-6 All world markets now in downtrends Fed remains quiet Mikey Shorts COH@ 60.32, SPG@ 114.92   EWZ @73.22,Buys DZZ@ 6.53, Buys EDZ @18.54 
6-7 Bernanke says economy is weaker says nothing about what the Fed will do. The Dallas Feds Fisher says the Fed has done enough it is now up to the government to make the right fiscal policies.
6-8 Bull bear comes in at 1.86 to 1 bulls after a 800 point decline. Mikey Nasdaq A/D line goes negative for the first time since last August. New lows for this index are higher than March and also the highest since August or pre QE2. In other words the Nasdaq has given up everything it gained on QE2. Put calls are starting to run hot at 1.15 and there is a week and 2 days until expiration. End of Qtr is approaching and the tone is getting negative.
6-9 oversold rally 5 Day was at -4000 for both the NAS and DJI and after today it is at -3300 and -3200 with the Put call at 1.01 and .95 on 10 day more rally may be needed.
6-10 Dollar up strongly to its 50 day ave. market breaks down 172
6-13 Precious metals hit. According to IBD 47% of the stocks are now above their 200 day average the lowest reading of the year. Preferred stocks trend  to down. Keeping my eye on National and Calif Muni markets as they are weakening. The trend is toward quality and away from risk.
Bought BZQ today @ 16.18
6-14 Going into this week put buying was heavy and now....options expiration are just 3 days away poof there go the puts up in smoke with the rally. Like I said 80% of options expire worthless and these counter trend rallies are the reason.

6-15 Dollar back above the 50 day and making a run at reversing trend. Euro and Pd tank. Oil drops 4.49 Platinum now in downtrend only Gold remains up. When it breaks the signal for deflation and economic weakness will be given. Bull/Bear now 36 to 27 or 1.42 bullish 10 day, NYSE AD line at oversold -5788

6-16 Dollar on verge of blowing up Options expire triple witch tomorrow

They talk about Greece but the truth is ( I hate to even deal with reality) the world economy is sinking fast along with the commodities. All the major currencies are falling now against the dollar the Aussie is the strongest and the last to go below 10523 should get someones attention, it does mine.

6-17 Dollar pushed down into expiration

6-20 Working off oversold.

6-21 Greece vote. Market is not oversold now.

6-22 Fed say economy weak will not be a QE 3..Look out!!!

6-23 Bernanke says high oil prices hurting economy. Last year he said it did not hurt economy. So guess what the US will sell oil from reserves. How convenient. That will make you think about which way they are going with the dollar.

6-23 The moment of truth is here for the dollar and Gold. The last holdouts of this new trend change

Gold closes at 1500 below the 50 day but above its closing low of May 5 th of 1480. The dollar closes right on its reversal number of 76.21. Aussie holds 105 on the close but under the 1.0523 that I believe is a downtrend.

6-27 Too many bears time to shake them out

The news is so bad that the bulls are claiming to be contrarians now. They say that the problems are temporary and that stocks will rally by year end. Who knows why should a bad economy get in the way of a stock rally that is what has been going on for the past year.

6-28 New Mikey indicator overbought oversold for short term traders -80 oversold (a buy) +80 overbought (a sell). Green being buy red being a sell. Currently at +45 or mildly overbought

Stock of the day (SOTD) ACOM 41

6-29 Mikey Meter 99, (STOD) SQM 64.55 Exxon counts the Greek austerity vote oil spikes

6-30 Mikey Meter 127 extremely overbought, Mike index 94 also overbought, % W at 3.11 all the way up

The market has returned to its pivot line and last breakdown. This would be a logical place to stop.

STOD: RUE 32.50

Is Exxon counting the Greek austerity vote??

Chalk it up to end of quarter window dressing and short bashing by the Fed and its cronies. The news says it the Greek austerity vote. I am sure that will work but hey everything needs a reason and who am I to judge the reality of anything, much less the importance of the Greek vote. Well any way the "Greek Vote" sure got oil prices and commodities in general spiking. I just hope for everyones sake they only vote once every 6 months. I hate paying 4.50 for gas. Who counts the votes? EXXON???


Mikey





Closing Prices

US Stock Indexes
DJIA 12261.42  +72.73  S/P 500 1307.41 +10.74
NYSE Comp  8228.50 NASDAQ 2740.49 +11.18
S/P Midcap 972.23 +7.35 Russell 2000 819.92 +2.61
DJT 53.65.47 +33.50 DJU 430.92 +2.06
US bonds and interest rates
US Gov rates: 6 mo .1094%  2 yr .4575% 10 yr 3.10 30 yr 4.37
IEF (US10 yr) 96.19 -.58 TLT (USLT) 94.23 -.64 
MUB (NatlMuni) 103.38 -.36 CalMuni (NCA)8.88 +.03
HYG (High Yield)90.70 +.89 PFF(Preferred) 39.51 +.07
BND (Total Bond Mkt) 81.33 -.18
Commodities
Commodities Indexes (DBC) 29.28 +.53 (USCI )64.94 +.93
Gold 1510.20 +10.00 Silver34.75 +1.11 Copper 4.21 +.12
Platinum 1723.80 +32.10 Nickel (JJN) 33.70  +.47
Oil 94.77 +1.88 RBOB 3.01 +.13  Nat Gas 4.31 -.04
Grains (JJG) 49.90 +.19 Livestock (COW) 29.60 -.01
Cotton (BAL)75.51 -.27 Agg complex(JJA) 60.35 +.35
US Dollar Index and World Currencies
Euro 1.4471 +.0161 Pound 1.5952 +.0071 Swiss Franc 1.1851 -.39
Yen 1.2213 +.0051 Aussie 1.0730 +.0158 Can$ 1.0277 +.0155
USD Index 75.07 -.41
World Debt markets
BWX(Intl Treas)61.67 +.11 PCY(EmerMkt)27.14 +.06
IBND(Intl Corp) 34.93 +.21

All Markets Current Trends

World debt markets
US Bonds: 6-29 current trend neutral
US Natl Muni Markets:: 2-18 current trend up

Intl Treas Bonds 6-29 current trend nuetral
Intl Corp Bonds 6-29 current trend neutral
Emerging Markets Debt: ..3-24 current trend up
US High Yield 6-1 current trend down
US Preferred Stocks 6-13 current trend down

Commodities
Commodity index (Broad based) 5-5 current trend down
Gold: .6-23 current trend down
Silver: 6-3 current trend down
Copper 6-29 current trend up
Platinum 6-15 current trend down
Palladium 6-23  current trend down
Nickel  5-6 current trend down
Grain complex 6-6 current trend down 
Sugar 2-23 currevt trend up
Cotton `4-25 current trend down
Livestock 6-21 current trend neutral
Coffee 5-11 current trend down
Lumber  3-29 current trend down
Agg complex 5-2 current trend down
Oil :5-6. current trend down
Gasoline 5-16 current trend down
Natural Gas 6-20 current trend down

World Stock markets
US Stocks: 6-1 current trend down
Europe 6-6 current trend up
China: 6-3 current trend down
Brazil 5-4 current trend down
Japan 5-13 current trend down
India 3-29 current trend down
Russia 5-4 current trend down
Emerging Markets: .6-6 current trend down
Total world markets 6-3 current trend down

Currencies markets

US Dollar Index 6-15 current trend neutral
Aussie Dollar 6-26 current trend up
Euro 6-29  current trend up
Brit Pd 6-16  current trend down

Swiss Franc: 2-17 current trend up
Jap Yen 4-26  current trend up 
Canadian Dollar 6-29 current trend neutral
Mexican Peso 6-6 current trend down
Brazilian Real 5-27 current trend up

Indian Rupe 5-16 current trend neutral

Trend changes:
Currencies Aussie to neutral from down, Euro to up from down, Can$ to neutral from down,
World stock markets:  
Commodities:
World Debt Intl bonds to neutral from down

US Stock Market Trends
Mikey Short term down 6-1  
Mikey Intermediate Trend: Up 09/03/10 10477
Mikey Long term trend: UP 10/13/10 11052
Mikey current trend opinion: 
Mikey: 6-1 NYSE Current trend down 12290
Mikey: NASDAQ 6-1 Current trend down 2767
IBD : 6-1 Market in correction 12290
Stock of the day: SQM 64.55 RS 90
US markets short term  technical trading indicators:

Mikey Overbought/Oversold Meter (-80 oversold 0 Neutral  80 overbought) 99

VIX (OB 10 - OS 40) 17.27 VXZ 51.46 Mikey OB/OS index (80 OB 20 OS) 91
Put/Call Ratio(.6 OB 1.2 OS) .1.03 10 day average  .90
Ratio Put Premiums to Call Premium (..34 to 2.5) 1.01 10 day ave 1.15
Mutial Fund  Purchase/Redemptions ( 1.5 to .66)  1.19   
Williams %R 12 day 5.43 Weekly 60.46
Bulls 39.8   Bears 26.9  Bull/Bear ratio 1.48
Mikey Thrust indicator: Daily 9 Weekly 4  (1 low, 10 max)13,5
DJIA MACD -65.35 Rising /Positive cross 6-21
Weekly MACD +165.80  Rising/ Negative cross 5-16
NYSE New Highs 82 (12/7 429)  New Lows (1-14 152 )13
NASDAQ New Highs 98(12-7 352) New Lows (6-10 162) 28
Advance/Declines
Daily NYSE Advance-Decline +1156 NASDAQ  Advance-Decline +149
Daily Mikey A/D line NYSE (5-31 33958)+32168  
Daily Mikey A/D line NASDAQ (2-18 10095) (6-13 -2188) +149
5 day AD NYSE +2782  NASDAQ +1904 NYSE..(OB +4000 OS -4000)  
10 day AD NYSE +5932 (6000 OB -6000 OS)
% above 200 day ave (6-13 47%) 57%
 below 50% indicates intermediate trend may be changing
Days to option expiration 13

DJI Moving Averages
5 day 12095  Rising/Price above
20 day 12071 Falling/ Price above
50 day 12369 Falling/Price below
90 day 12280 Falling /Price below
200 day 11801 Rising/Price above
20 week 12286  Falling /Price below
50 week 11543 Rising/ Price above
90 week 11022 Rising/Price above
200 week 10795 Falling/ Price above

Comments:
5-31 IBD and Mikey current trend up
6-1 Whipsaw selloff 10 yr rates 2.96, 30 year to 4.15 6 month lows. Economic weakness story being told for the first time High Yield falling apart indicates credit quality problems coming
Mikey and IBD current trend down
6-3 Bad jobs number story turns decidedly negative
6-6 All world markets now in downtrends Fed remains quiet Mikey Shorts COH@ 60.32, SPG@ 114.92   EWZ @73.22,Buys DZZ@ 6.53, Buys EDZ @18.54 
6-7 Bernanke says economy is weaker says nothing about what the Fed will do. The Dallas Feds Fisher says the Fed has done enough it is now up to the government to make the right fiscal policies.
6-8 Bull bear comes in at 1.86 to 1 bulls after a 800 point decline. Mikey Nasdaq A/D line goes negative for the first time since last August. New lows for this index are higher than March and also the highest since August or pre QE2. In other words the Nasdaq has given up everything it gained on QE2. Put calls are starting to run hot at 1.15 and there is a week and 2 days until expiration. End of Qtr is approaching and the tone is getting negative.
6-9 oversold rally 5 Day was at -4000 for both the NAS and DJI and after today it is at -3300 and -3200 with the Put call at 1.01 and .95 on 10 day more rally may be needed.
6-10 Dollar up strongly to its 50 day ave. market breaks down 172
6-13 Precious metals hit. According to IBD 47% of the stocks are now above their 200 day average the lowest reading of the year. Preferred stocks trend  to down. Keeping my eye on National and Calif Muni markets as they are weakening. The trend is toward quality and away from risk.
Bought BZQ today @ 16.18
6-14 Going into this week put buying was heavy and now....options expiration are just 3 days away poof there go the puts up in smoke with the rally. Like I said 80% of options expire worthless and these counter trend rallies are the reason.

6-15 Dollar back above the 50 day and making a run at reversing trend. Euro and Pd tank. Oil drops 4.49 Platinum now in downtrend only Gold remains up. When it breaks the signal for deflation and economic weakness will be given. Bull/Bear now 36 to 27 or 1.42 bullish 10 day, NYSE AD line at oversold -5788

6-16 Dollar on verge of blowing up Options expire triple witch tomorrow

They talk about Greece but the truth is ( I hate to even deal with reality) the world economy is sinking fast along with the commodities. All the major currencies are falling now against the dollar the Aussie is the strongest and the last to go below 10523 should get someones attention, it does mine.

6-17 Dollar pushed down into expiration

6-20 Working off oversold.

6-21 Greece vote. Market is not oversold now.

6-22 Fed say economy weak will not be a QE 3..Look out!!!

6-23 Bernanke says high oil prices hurting economy. Last year he said it did not hurt economy. So guess what the US will sell oil from reserves. How convenient. That will make you think about which way they are going with the dollar.

6-23 The moment of truth is here for the dollar and Gold. The last holdouts of this new trend change

Gold closes at 1500 below the 50 day but above its closing low of May 5 th of 1480. The dollar closes right on its reversal number of 76.21. Aussie holds 105 on the close but under the 1.0523 that I believe is a downtrend.

6-27 Too many bears time to shake them out

The news is so bad that the bulls are claiming to be contrarians now. They say that the problems are temporary and that stocks will rally by year end. Who knows why should a bad economy get in the way of a stock rally that is what has been going on for the past year.

6-28 New Mikey indicator overbought oversold for short term traders -80 oversold (a buy) +80 overbought (a sell). Green being buy red being a sell. Currently at +45 or mildly overbought

Stock of the day (SOTD) ACOM 41

6-29 Mikey Meter 99, (STOD) SQM 64.55 Exxon counts the Greek austerity vote oil spikes

Tied at the Hip....Fed messes with the dollar and comodities take off

Closing Prices

US Stocks
DJIA 12188.69 +145.13  S/P 500 1298.67 +16.57  
NYSE Comp  8135.98 +104.90 NASDAQ 2729.31 +41.03
S/P Midcap 964.88 +14.54 Russell 2000 817.31 +12.17
DJT 5331.97 DJU 429.23 +2.15
US bonds and interest rates
US Gov rates: 6 mo .1119%  2 yr .4732% 10 yr 3.02 30 yr 4.31
IEF (US10 yr)96.83 -.84 TLT (USLT) 95.09 -.56  
MUB (NatlMuni) 103.74 -.20 CalMuni (NCA)8.85 +.01
HYG (High Yield) 89.81 +.36   PFF(Preferred) 39.46 +.27
BND (Total Bond Mkt) 81.25 -.56
Commodities
Commodities Indexes (DBC) 28.95 +.70 (USCI )64.00 +1.11
Gold 1500.20 +3.80 Silver 33.64  Copper 4.09 +.04
Platinum 1691.70 +18.70 Nickel (JJN) 33.23 +.77
Oil 92.89 +2.28 RBOB 2.88 +.08 Nat Gas 4.35 +.09
Grains (JJG) 50.19 +1.78 Livestock (COW) 29.61 +.18
Cotton (BAL) 75.78 +.36 Agg complex(JJA) 60.00 +1.46
US Dollar Index and World Currencies
Aussie 1.0572 +.0102 Euro 1.4303 +.0075 Pound 1.5886 +.0016
Yen 1.2165 -.0033 Can$ 1.0124 +.0043 USD Index 75.48
World Debt markets
BWX(Intl Treas)61.43 +.03 PCY(EmerMkt) 27.03 +.01
IBND(Intl Corp) 34.70 +.16

All Markets Current Trends

World debt markets
US Bonds: 4-15 current trend up

US Natl Muni Markets:: 2-18 current trend up
Intl Treas Bonds 6-23 current trend down
Intl Corp Bonds 6-23 current trend down
Emerging Markets Debt: ..3-24 current trend up
US High Yield 6-1 current trend down
US Preferred Stocks 6-13 current trend down

Commodities
Commodity index (Broad based) 5-5 current trend down
Gold: .6-23 current trend nuetral
Silver: 6-3 current trend down
Copper 6-1 current trend down
Platinum 6-15 current trend down
Palladium 6-23  current trend down
Nickel  5-6 current trend down
Grain complex 6-6 current trend down 
Sugar 2-23 currevt trend up
Cotton `4-25 current trend down
Livestock 6-21 current trend neutral
Coffee 5-11 current trend down
Lumber  3-29 current trend down
Agg complex 5-2 current trend down
Oil :5-6. current trend down
Gasoline 5-16 current trend down
Natural Gas 6-20 current trend down

World Stock markets
US Stocks: 6-1 current trend down
Europe 6-6 current trend up
China: 6-3 current trend down
Brazil 5-4 current trend down
Japan 5-13 current trend down
India 3-29 current trend down
Russia 5-4 current trend down
Emerging Markets: .6-6 current trend down
Total world markets 6-3 current trend down

Currencies markets

US Dollar Index 6-15 current trend neutral
Aussie Dollar 6-24 current trend down
Euro 6-23  current trend down
Brit Pd 6-16  current trend down

Jap Yen 4-26  current trend up 
Canadian Dollar 5-13 current trend down
Mexican Peso 6-6 current trend down
Brazilian Real 5-27 current trend neutral

Indian Rupe 5-16 current trend neutral

Trend changes:
Currencies
World stock markets:  
Commodities:
World Debt

US Stock Market Trends
Mikey Short term down 6-1  
Mikey Intermediate Trend: Up 09/03/10 10477
Mikey Long term trend: UP 10/13/10 11052
Mikey current trend opinion: 
Mikey: 6-1 NYSE Current trend down 12290
Mikey: NASDAQ 6-1 Current trend down 2767
IBD : 6-1 Market in correction 12290
Stock of the day: ACOM 41.00 Relative strength 96

US markets short term  technical trading indicators:

Mikey Overbought/Oversold Meter (-80 oversold 0 Neutral  80 overbought) 45

VIX (OB 10 - OS 40) 19.17 VXZ 52.43 Mikey OB/OS index (80 OB 20 OS) 83
Put/Call Ratio(.6 OB 1.2 OS) .85 10 day average  .92
Ratio Put Premiums to Call Premium (..34 to 2.5) 1.01 10 day ave 1.15
Mutial Fund  Purchase/Redemptions ( 1.5 to .66)  1.19   
Williams %R 12 day 8.07 Weekly 67.68
Bulls 37.6   Bears 28  Bull/Bear ratio 1.34
Mikey Thrust indicator: Daily 9 Weekly 3 (1 low, 10 max)12 ,9
DJIA MACD -85.79 Rising /Positive cross 6-21
Weekly MACD +159.94 Falling/ Negative cross 5-16
NYSE New Highs 78 (12/7 429)  New Lows (1-14 152 )19
NASDAQ New Highs 102(12-7 352) New Lows (6-10 162) 23
Advance/Declines
Daily NYSE Advance-Decline +1822 NASDAQ  Advance-Decline +1217
Daily Mikey A/D line NYSE (5-31 33958)+31012 
Daily Mikey A/D line NASDAQ (2-18 10095) (6-13 -2188) +766
5 day AD NYSE +1109  NASDAQ +912 NYSE..(OB +4000 OS -4000)  
10 day AD NYSE +2698 (6000 OB -6000 OS)
% above 200 day ave (6-13 47%) 57%
 below 50% indicates intermediate trend may be changing
Days to option expiration 14
DJI Moving Averages
5 day 12065  Flat/Price above
20 day 12073  Falling/ Price above
50 day 12368 Falling/Price below
90 day 12281 Falling /Price below
200 day 11792 Rising/Price above
20 week 12286  Falling /Price below
50 week 11543 Rising/ Price above
90 week 11022 Rising/Price above
200 week 10795 Falling/ Price above

Comments:
5-31 IBD and Mikey current trend up
6-1 Whipsaw selloff 10 yr rates 2.96, 30 year to 4.15 6 month lows. Economic weakness story being told for the first time High Yield falling apart indicates credit quality problems coming
Mikey and IBD current trend down
6-3 Bad jobs number story turns decidedly negative
6-6 All world markets now in downtrends Fed remains quiet Mikey Shorts COH@ 60.32, SPG@ 114.92   EWZ @73.22,Buys DZZ@ 6.53, Buys EDZ @18.54 
6-7 Bernanke says economy is weaker says nothing about what the Fed will do. The Dallas Feds Fisher says the Fed has done enough it is now up to the government to make the right fiscal policies.
6-8 Bull bear comes in at 1.86 to 1 bulls after a 800 point decline. Mikey Nasdaq A/D line goes negative for the first time since last August. New lows for this index are higher than March and also the highest since August or pre QE2. In other words the Nasdaq has given up everything it gained on QE2. Put calls are starting to run hot at 1.15 and there is a week and 2 days until expiration. End of Qtr is approaching and the tone is getting negative.
6-9 oversold rally 5 Day was at -4000 for both the NAS and DJI and after today it is at -3300 and -3200 with the Put call at 1.01 and .95 on 10 day more rally may be needed.
6-10 Dollar up strongly to its 50 day ave. market breaks down 172
6-13 Precious metals hit. According to IBD 47% of the stocks are now above their 200 day average the lowest reading of the year. Preferred stocks trend  to down. Keeping my eye on National and Calif Muni markets as they are weakening. The trend is toward quality and away from risk.
Bought BZQ today @ 16.18
6-14 Going into this week put buying was heavy and now....options expiration are just 3 days away poof there go the puts up in smoke with the rally. Like I said 80% of options expire worthless and these counter trend rallies are the reason.

6-15 Dollar back above the 50 day and making a run at reversing trend. Euro and Pd tank. Oil drops 4.49 Platinum now in downtrend only Gold remains up. When it breaks the signal for deflation and economic weakness will be given. Bull/Bear now 36 to 27 or 1.42 bullish 10 day, NYSE AD line at oversold -5788

6-16 Dollar on verge of blowing up Options expire triple witch tomorrow

They talk about Greece but the truth is ( I hate to even deal with reality) the world economy is sinking fast along with the commodities. All the major currencies are falling now against the dollar the Aussie is the strongest and the last to go below 10523 should get someones attention, it does mine.

6-17 Dollar pushed down into expiration

6-20 Working off oversold.

6-21 Greece vote. Market is not oversold now.

6-22 Fed say economy weak will not be a QE 3..Look out!!!

6-23 Bernanke says high oil prices hurting economy. Last year he said it did not hurt economy. So guess what the US will sell oil from reserves. How convenient. That will make you think about which way they are going with the dollar.

6-23 The moment of truth is here for the dollar and Gold. The last holdouts of this new trend change

Gold closes at 1500 below the 50 day but above its closing low of May 5 th of 1480. The dollar closes right on its reversal number of 76.21. Aussie holds 105 on the close but under the 1.0523 that I believe is a downtrend.

6-27 Too many bears time to shake them out

The news is so bad that the bulls are claiming to be contrarians now. They say that the problems are temporary and that stocks will rally by year end. Who knows why should a bad economy get in the way of a stock rally that is what has been going on for the past year.

6-28 New Mikey indicator overbought oversold for short term traders -80 oversold (a buy) +80 overbought (a sell). Green being buy red being a sell. Currently at +45 or mildly overbought

Stock of the day (SOTD) ACOM 41

The rally the last two days comes as the Fed refuses to let the dollar reverse trend. You can see by the rally in the commodity section that this weak dollar policy just puts us back to where we were when oil was at running and commodities were killing the economies of the world.  If the Fed continues this policy we will have  high commodity prices and weak economies. That is foolhardy. I would not expect that to continue.

I have included a new indicator today it is the Mikey overbought oversold. Today it debuts at +45 which is is mildly overbought. (0 is Neutral, -80 is oversold which is a good place to buy and -80 is overbought or a good sell point). I have color coded the number to read green buy, black neutral, and red sell. I will post this number daily on the top of the market indicators section and the comments section. I consider this an import number to look at before I put on any position. I will give you a sense of the range of possibilities within a given short term trading parameter.  The stock of the day (SOTD) is a high relative strength stock I will consider if the market is trending up. I will post a stock each day under US market trends and in the comments section.

.

Mikey 

Stocks are cheap Well that's their story

Closing Prices

US Stocks
DJIA 12043.56 +108.98 S/P 500 1280.10 +11.65
NYSE Comp  8031.08 +56.36 NASDAQ 2688.28 +35.39
S/P Midcap 950.34 +4.34 Russell 2000 805.14 +7.35
DJT 5259.19 +45.04 DJU 427.08 +3.09
US bonds and interest rates
US Gov rates: 6 mo .0890%  2 yr .4025% 10 yr 2.91 30 yr 4.27
IEF(US10 yr)97.67 -.38 TLT (USLT) 95.54 -1.44
MUB (NatlMuni) 103.94 +.06 CalMuni (NCA)8.84 -.03
HYG (High Yield) 89.55 +.08  PFF(Preferred) 39.24 +.02
BND (Total Bond Mkt)81.90 -.15
Commodities
Commodities Indexes (DBC) 28.25 -.01 (USCI )62.89 -.23
Gold 1496.40 -4.60 Silver 35.58 -1.05 Copper 4.05 -.05
Platinum 1673 -14.00 Nickel (JJN) 32.46 +.27
Oil 90.61 -.55 RBOB 2.80 +.03 Nat Gas 4.26 +.04
Grains (JJG)48.41 -.31 Livestock (COW) 29.47 -.42
Cotton (BAL) 75.42 -.08 Agg complex(JJA)58.54 -.31
US Dollar Index and World Currencies
Aussie 1.0470 -.0057 Euro 1.4239 +.0107 Pound 1.5870 +.0012
Yen 1.2198 -.0063 Can$ 1.0081 +.0005 USD Index 75.83 -.38
World Debt markets
BWX(Intl Treas)61.43 +.03 PCY(EmerMkt) 27.03 +.01
IBND(Intl Corp) 34.70 +.16
All Markets Current Trends

World debt markets
US Bonds: 4-15 current trend up

US Natl Muni Markets:: 2-18 current trend up
Intl Treas Bonds 6-23 current trend down
Intl Corp Bonds 6-23 current trend down
Emerging Markets Debt: ..3-24 current trend up
US High Yield 6-1 current trend down
US Preferred Stocks 6-13 current trend down

Commodities
Commodity index (Broad based) 5-5 current trend down
Gold: .6-23 current trend nuetral
Silver: 6-3 current trend down
Copper 6-1 current trend down
Platinum 6-15 current trend down
Palladium 6-23  current trend down
Nickel  5-6 current trend down
Grain complex 6-6 current trend down 
Sugar 2-23 currevt trend up
Cotton `4-25 current trend down
Livestock 6-21 current trend neutral
Coffee 5-11 current trend down
Lumber  3-29 current trend down
Agg complex 5-2 current trend down
Oil :5-6. current trend down
Gasoline 5-16 current trend down
Natural Gas 6-20 current trend down

World Stock markets
US Stocks: 6-1 current trend down
Europe 6-6 current trend up
China: 6-3 current trend down
Brazil 5-4 current trend down
Japan 5-13 current trend down
India 3-29 current trend down
Russia 5-4 current trend down
Emerging Markets: .6-6 current trend down
Total world markets 6-3 current trend down

Currencies markets

US Dollar Index 6-15 current trend neutral
Aussie Dollar 6-24 current trend down
Euro 6-23  current trend down
Brit Pd 6-16  current trend down

Jap Yen 4-26  current trend up 
Canadian Dollar 5-13 current trend down
Mexican Peso 6-6 current trend down
Brazilian Real 5-27 current trend neutral

Indian Rupe 5-16 current trend neutral

Trend changes:
Currencies
World stock markets:  
Commodities:
World Debt

US Stock Market Trends
Mikey Short term down 6-1  
Mikey Intermediate Trend: Up 09/03/10 10477
Mikey Long term trend: UP 10/13/10 11052
Mikey current trend opinion: 
Mikey: 6-1 NYSE Current trend down 12290
Mikey: NASDAQ 6-1 Current trend down 2767
IBD : 6-1 Market in correction 12290

US markets short term  technical trading indicators:

VIX (OB 10 - OS 40) 20.56 VXZ 52.98 Mikey OB/OS index (80 OB 20 OS) .78
Put/Call Ratio(.6 OB 1.2 OS) .53 10 day average  .91
Ratio Put Premiums to Call Premium (..34 to 2.5) 1.03 10 day ave 119
Mutial Fund  Purchase/Redemptions ( 1.5 to .66)  1.19   
Williams %R 12 day 48.61 Weekly 82.01
Bulls 37.6   Bears 28  Bull/Bear ratio 1.34
Mikey Thrust indicator: Daily 5 Weekly 2 (1 low, 10 max)7,3
DJIA MACD -102.78  Rising /Positive cross 6-21
Weekly MACD +148.33 Falling/ Negative cross 5-16
NYSE New Highs 50 (12/7 429)  New Lows (1-14 152 )39
NASDAQ New Highs 63 (12-7 352) New Lows (6-10 162) 49
Advance/Declines
Daily NYSE Advance-Decline +1098 NASDAQ  Advance-Decline +801
Daily Mikey A/D line NYSE (5-31 33958)+29190 
Daily Mikey A/D line NASDAQ (2-18 10095) (6-13 -2188) -451
5 day AD NYSE +1424  NASDAQ +1236 NYSE..(OB +4000 OS -4000)  
10 day AD NYSE +2884 (6000 OB -6000 OS)
 % above 200 day ave (6-13 47%) 53 %
 below 50% indicates intermediate trend may be changing
Days to option expiration 15

DJI Moving Averages
5 day 12065  Flat/Price below
20 day 12092 Falling/ Price below
50 day 12371 Falling/Price below
90 day 12283  Falling /Price below
200 day 11784 Rising/Price above
20 week 12286  Falling /Price below
50 week 11543 Rising/ Price above
90 week 11022 Rising/Price above
200 week 10795 Falling/ Price above

Comments:
5-27 Dollar reverses down assets reverse up
5-31 IBD and Mikey current trend up
6-1 Whipsaw selloff 10 yr rates 2.96, 30 year to 4.15 6 month lows. Economic weakness story being told for the first time High Yield falling apart indicates credit quality problems coming
Mikey and IBD current trend down
6-3 Bad jobs number story turns decidedly negative
6-6 All world markets now in downtrends Fed remains quiet Mikey Shorts COH@ 60.32, SPG@ 114.92   EWZ @73.22,Buys DZZ@ 6.53, Buys EDZ @18.54 
6-7 Bernanke says economy is weaker says nothing about what the Fed will do. The Dallas Feds Fisher says the Fed has done enough it is now up to the government to make the right fiscal policies.
6-8 Bull bear comes in at 1.86 to 1 bulls after a 800 point decline. Mikey Nasdaq A/D line goes negative for the first time since last August. New lows for this index are higher than March and also the highest since August or pre QE2. In other words the Nasdaq has given up everything it gained on QE2. Put calls are starting to run hot at 1.15 and there is a week and 2 days until expiration. End of Qtr is approaching and the tone is getting negative.
6-9 oversold rally 5 Day was at -4000 for both the NAS and DJI and after today it is at -3300 and -3200 with the Put call at 1.01 and .95 on 10 day more rally may be needed.
6-10 Dollar up strongly to its 50 day ave. market breaks down 172
6-13 Precious metals hit. According to IBD 47% of the stocks are now above their 200 day average the lowest reading of the year. Preferred stocks trend  to down. Keeping my eye on National and Calif Muni markets as they are weakening. The trend is toward quality and away from risk.
Bought BZQ today @ 16.18
6-14 Going into this week put buying was heavy and now....options expiration are just 3 days away poof there go the puts up in smoke with the rally. Like I said 80% of options expire worthless and these counter trend rallies are the reason.

6-15 Dollar back above the 50 day and making a run at reversing trend. Euro and Pd tank. Oil drops 4.49 Platinum now in downtrend only Gold remains up. When it breaks the signal for deflation and economic weakness will be given. Bull/Bear now 36 to 27 or 1.42 bullish 10 day, NYSE AD line at oversold -5788

6-16 Dollar on verge of blowing up Options expire triple witch tomorrow

They talk about Greece but the truth is ( I hate to even deal with reality) the world economy is sinking fast along with the commodities. All the major currencies are falling now against the dollar the Aussie is the strongest and the last to go below 10523 should get someones attention, it does mine.

6-17 Dollar pushed down into expiration

6-20 Working off oversold.

6-21 Greece vote. Market is not oversold now.

6-22 Fed say economy weak will not be a QE 3..Look out!!!

6-23 Bernanke says high oil prices hurting economy. Last year he said it did not hurt economy. So guess what the US will sell oil from reserves. How convenient. That will make you think about which way they are going with the dollar.

6-23 The moment of truth is here for the dollar and Gold. The last holdouts of this new trend change

Gold closes at 1500 below the 50 day but above its closing low of May 5 th of 1480. The dollar closes right on its reversal number of 76.21. Aussie holds 105 on the close but under the 1.0523 that I believe is a downtrend.

6-24 Too many bears time to shake them out

The news is so bad that the bulls are claiming to be contrarians now. They say that the problems are temporary and that stocks will rally by year end. Who knows why should a bad economy get in the way of a stock rally that is what has been going on for the past year.

I hear a lot of talk that stocks are cheap. The dirty little secret is that when stocks are cheap they get cheaper. Like Cranmer says buy high sell higher. IBD says never average down or buy stocks in a correcting market. I would agree with that 100%.

I think the market is in a position to shake out the bears now and has set up for some kind of rally. I would not be surprised if we rally to the 50 day which is now at 12371. That is also the area where the market broke down in early June. What I will look for is a buy signal and  would short the weakness after that signal.

Mikey

Get ready for a different world

Closing Prices

US Stocks
DJIA 11934.58 -115.42  S/P 500 1268.45 -15.05
NYSE Comp  7974.72 -79.36 NASDAQ 2652.89 -33.86
S/P Midcap 946.00 -7.65 Russell 2000 797.79 -4.89
DJT 5214.15 -88.48  DJU 423.99 +.56
US bonds and interest rates
US Gov rates: 6 mo .0712%  2 yr .333% 10 yr 2.87 30 yr 4.18
IEF(US10 yr)98.03 +.39 TLT (USLT) 97.08 -.31
MUB (NatlMuni) 103.88 +.19 CalMuni (NCA)8.87 -.03
HYG (High Yield) 89.47 -.43 PFF(Preferred) 39.22 -.05
BND (Total Bond Mkt) 82.21 +.24
Commodities
Commodities Indexes (DBC) 28.26 -.34 (USCI )63.12 -.24  
Gold 1500.90 -19.60 Silver 34.63 -.36 Copper 4.10 +.06
Platinum 1687 -16.90 Nickel (JJN) 32.18 -.32
Oil 91.16 +.14 RBOB 2.77 -.07 Nat Gas 4.22 +.03
Grains (JJG)48.66 -.90 Livestock (COW) 29.89 -.19
Cotton (BAL) 75.78 +.73 Agg complex(JJA)58.85 -.73
US Dollar Index and World Currencies
Aussie 1.0523 -.0035 Euro 1.4141 -.0069 Pound 1.5852 -.0050
Yen 1.2259 +.0014 Can$ 1.0075 -.0094 USD Index 76.21 +.30
World Debt markets
BWX(Intl Treas) 61.40 -.19 PCY(EmerMkt) 26.99 -.01
IBND(Intl Corp) 34.54 -.21

All Markets Current Trends

World debt markets
US Bonds: 4-15 current trend up

US Natl Muni Markets: : 2-18 current trend up
Intl Treas Bonds 6-23 current trend down
Intl Corp Bonds 6-23 current trend down
Emerging Markets Debt: ..3-24 current trend up
US High Yield 6-1 current trend down
US Preferred Stocks 6-13 current trend down

Commodities
Commodity index (Broad based) 5-5 current trend down
Gold: .6-23 current trend nuetral
Silver: 6-3 current trend down
Copper 6-1 current trend down
Platinum 6-15 current trend down
Palladium 6-23  current trend down
Nickel  5-6 current trend down
Grain complex 6-6 current trend down 
Sugar 2-23 currevt trend up
Cotton `4-25 current trend down
Livestock 6-21 current trend neutral
Coffee 5-11 current trend down
Lumber  3-29 current trend down
Agg complex 5-2 current trend down
Oil :5-6. current trend down
Gasoline 5-16 current trend down
Natural Gas 6-20 current trend down

World Stock markets
US Stocks: 6-1 current trend down
Europe 6-6 current trend up
China: 6-3 current trend down
Brazil 5-4 current trend down
Japan 5-13 current trend down
India 3-29 current trend down
Russia 5-4 current trend down
Emerging Markets: .6-6 current trend down
Total world markets 6-3 current trend down

Currencies markets

US Dollar Index 6-15 current trend neutral
Aussie Dollar 6-24 current trend down
Euro 6-23  current trend down
Brit Pd 6-16  current trend down

Jap Yen 4-26  current trend up 
Canadian Dollar 5-13 current trend down
Mexican Peso 6-6 current trend down
Brazilian Real 5-27 current trend neutral

Indian Rupe 5-16 current trend neutral

Trend changes:
Currencies Aussie to down
World stock markets:  
Commodities: Gold to neutral
World Debt markets: International corp to down, International Sovrneign to down

US Stock Market Trends
Mikey Short term down 6-1  
Mikey Intermediate Trend: Up 09/03/10 10477
Mikey Long term trend: UP 10/13/10 11052
Mikey current trend opinion: 
Mikey: 6-1 NYSE Current trend down 12290
Mikey: NASDAQ 6-1 Current trend down 2767
IBD : 6-1 Market in correction 12290

US markets short term  technical trading indicators:

VIX (OB 10 - OS 40) 21.10 VXZ 53.72 Mikey OB/OS index (80 OB 20 OS) .76
Put/Call Ratio(.6 OB 1.2 OS) 1.05 10 day average  .96
Ratio Put Premiums to Call Premium (..34 to 2.5) .98 10 day ave 1.21
Mutial Fund  Purchase/Redemptions ( 1.5 to .66)  1.19   
Williams %R 12 day 78.21 Weekly 92.37
Bulls 37.6   Bears 28  Bull/Bear ratio 1.34
Mikey Thrust indicator: Daily 2 Weekly 1 (1 low, 10 max)3,1
DJIA MACD -108 Falling  /Positive cross 6-21
Weekly MACD +173.81 Falling/ Negative cross 5-16
NYSE New Highs 56 (12/7 429)  New Lows (1-14 152 )40
NASDAQ New Highs 63 (12-7 352) New Lows (6-10 162) 54
Advance/Declines
Daily NYSE Advance-Decline -814   NASDAQ  Advance-Decline -448
Daily Mikey A/D line NYSE (5-31 33958)+28092  
Daily Mikey A/D line NASDAQ (2-18 10095) (6-13 -2188) -1252
5 day AD NYSE +1394  NASDAQ +794 NYSE..(OB +4000 OS -4000)  
10 day AD NYSE +1456 (6000 OB -6000 OS)
 % above 200 day ave (6-13 47%) 50 %
 below 50% indicates intermediate trend may be changing
Days to option expiration 16

DJI Moving Averages
5 day 12073  Flat/Price below
20 day 12112  Falling/ Price below
50 day 12376  Falling/Price below
90 day 12285  Falling /Price below
200 day 11776 Rising/Price above
20 week 12286  Falling /Price below
50 week 11543 Rising/ Price above
90 week 11022 Rising/Price above
200 week 10795 Falling/ Price above

Comments:
5-24 Mikey calls DJI 12356 in downtrend
5-27 Dollar reverses down assets reverse up
5-31 IBD and Mikey current trend up
6-1 Whipsaw selloff 10 yr rates 2.96, 30 year to 4.15 6 month lows. Economic weakness story being told for the first time High Yield falling apart indicates credit quality problems coming
Mikey and IBD current trend down
6-3 Bad jobs number story turns decidedly negative
6-6 All world markets now in downtrends Fed remains quiet Mikey Shorts COH@ 60.32, SPG@ 114.92   EWZ @73.22,Buys DZZ@ 6.53, Buys EDZ @18.54 
6-7 Bernanke says economy is weaker says nothing about what the Fed will do. The Dallas Feds Fisher says the Fed has done enough it is now up to the government to make the right fiscal policies.
6-8 Bull bear comes in at 1.86 to 1 bulls after a 800 point decline. Mikey Nasdaq A/D line goes negative for the first time since last August. New lows for this index are higher than March and also the highest since August or pre QE2. In other words the Nasdaq has given up everything it gained on QE2. Put calls are starting to run hot at 1.15 and there is a week and 2 days until expiration. End of Qtr is approaching and the tone is getting negative.
6-9 oversold rally 5 Day was at -4000 for both the NAS and DJI and after today it is at -3300 and -3200 with the Put call at 1.01 and .95 on 10 day more rally may be needed.
6-10 Dollar up strongly to its 50 day ave. market breaks down 172
6-13 Precious metals hit. According to IBD 47% of the stocks are now above their 200 day average the lowest reading of the year. Preferred stocks trend  to down. Keeping my eye on National and Calif Muni markets as they are weakening. The trend is toward quality and away from risk.
Bought BZQ today @ 16.18
6-14 Going into this week put buying was heavy and now....options expiration are just 3 days away poof there go the puts up in smoke with the rally. Like I said 80% of options expire worthless and these counter trend rallies are the reason.

6-15 Dollar back above the 50 day and making a run at reversing trend. Euro and Pd tank. Oil drops 4.49 Platinum now in downtrend only Gold remains up. When it breaks the signal for deflation and economic weakness will be given. Bull/Bear now 36 to 27 or 1.42 bullish 10 day, NYSE AD line at oversold -5788

6-16 Dollar on verge of blowing up Options expire triple witch tomorrow

They talk about Greece but the truth is ( I hate to even deal with reality) the world economy is sinking fast along with the commodities. All the major currencies are falling now against the dollar the Aussie is the strongest and the last to go below 10523 should get someones attention, it does mine.

6-17 Dollar pushed down into expiration

6-20 Working off oversold.

6-21 Greece vote. Market is not oversold now.

6-22 Fed say economy weak will not be a QE 3..Look out!!!

6-23 Bernanke says high oil prices hurting economy. Last year he said it did not hurt economy. So guess what the US will sell oil from reserves. How convenient. That will make you think about which way they are going with the dollar.

6-23 The moment of truth is here for the dollar and Gold. The last holdouts of this new trend change

Gold closes at 1500 below the 50 day but above its closing low of May 5 th of 1480. The dollar closes right on its reversal number of 76.21. Aussie holds 105 on the close but under the 1.0523 that I believe is a downtrend.

It is very clear to me that the world leaders want lower commodity prices. That will come at the expense of world economic growth. The central player in the news this week was Greece but the real news is that the commodities markets are in full retreat now. Gold was hit 50 bucks in the last two trading sessions. That is interesting given the Greece problem. The strength in the dollar is overruling the Gold price now.

Gold is the sacred cow in the markets. The central bankers have been selling it to the public for the last two years. Gold is a religion not an investment. It will not be believed when Gold tanks and the dollar reverses. This will not make sense but remember in a virtual reality anything can and does happen. Gold is just another tool that is used to deliver a message. The next message it will be giving is one of deflation and falling economies.

The strength in the dollar is because of the relative strength of the us economy, which has been pumping liquidity into the system for the past 3 years and the World currencies which have been raising rates and draining liquidity for the past 1 year. The purpose of which is to kill inflation. It is now working and the trends have changed.

This week Bernanke came clean about the economy (well almost) and also said no QE 3. It is up to each investor to interpret that message. To me it means that the Fed is going to lift the vail it has lowered over the economy for the last 9 months and reveal a bleaker picture of the economy worldwide. The winners are going to be the dollar and US bonds and the holders of those instruments, the Fed.

Mikey